When should I get home insurance?
It’s generally advisable to get home insurance as soon as you take ownership or possession of your new home. Home insurance provides financial protection against various risks, including damage to your property, liability for injuries that occur on your property, and the loss of personal belongings due to covered events.
Here are some key points to consider regarding when to get home insurance:
- Closing Date:
Typically, your lawyer or notary will arrange for insurance coverage to begin on the closing date when you officially take possession of the property. It’s crucial to have insurance in place by this date to ensure your home is protected from unexpected events. - Mortgage Requirement:
If you have a mortgage on your home, your lender will likely require you to have insurance in place. Lenders want to protect their investment, and insurance is a standard requirement to secure a mortgage. - Protecting Your Investment:
Your home is a significant investment, and having insurance in place from the beginning helps safeguard your financial interests. It ensures that if an unforeseen event occurs, such as a fire, storm damage, or theft, you have coverage to assist with repair or replacement costs. - Liability Coverage:
Home insurance often includes liability coverage, which can protect you if someone is injured on your property. Having this coverage in place is important from day one to mitigate potential legal and financial consequences. - Personal Belongings:
Home insurance can cover your personal belongings, such as furniture, electronics, and clothing, in case of theft or damage. Starting coverage early ensures that your possessions are protected from the moment you move in. - Association Requirements:
If you live in a condominium or a community with a homeowners’ association, there may be specific insurance requirements. Ensure that you meet these requirements by securing the necessary coverage.