Homeowners insurance

Insurance is part of both the property decision and the mortgage payment.

Lenders generally require acceptable property insurance before closing, and the premium can materially affect the monthly housing cost.

Coverage

The policy generally needs to satisfy lender requirements for the property and loan.

Insurance cost varies by property, location, coverage, deductible, insurer, and risk factors.

Premiums are often included in monthly escrow collections when an escrow account is used.

The initial premium or evidence of coverage may be required before the mortgage can close.

Wildfire exposure, insurer availability, FAIR Plan use, and changing premiums can materially affect California transactions.

Insurance should be investigated early enough that cost or availability does not surprise the buyer near closing.