Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

Buying a home is exciting, but before you can move in, there’s one important step:  home insurance . Many buyers ask,  “Do I need insurance before closing?”  The answer is  yes —and here’s why.

If you’re getting a mortgage, your lender  requires  home insurance before they approve your loan. This protects their investment—and yours—if something happens to the home. Even if you’re buying with cash,  having insurance is still a smart move  to avoid major financial risks.

The best time to start shopping for home insurance is  after signing the Purchase and Sale (P&S) agreement and scheduling your home inspection .

Why?
✔️ You’ll have time to compare policies and prices.
✔️ The home inspection might reveal issues that impact coverage.
✔️ Your lender needs proof of insurance before closing.

Waiting until the last minute can lead to rushed decisions or delays in closing.

Home insurance costs depend on factors like location, home size, and coverage limits. On average:

🏡  National average:  $1,000 – $2,500 per year
📍  Low-risk areas:  Around $800 – $1,200 per year
⚠️  High-risk areas (floods, hurricanes, wildfires):  $2,500+ per year

Your premium will also depend on your deductible, the home’s age, and safety features. The best way to find the right price?  Compare quotes from multiple insurers.

Not all policies are the same. Make sure yours includes:

• Full replacement cost  – Covers rebuilding your home if it’s destroyed.
• Personal property coverage  – Protects your furniture, electronics, and belongings.
• Liability protection  – Covers accidents or injuries on your property.
• Temporary housing coverage  – Pays for a place to stay if your home is unlivable.
• Extra protection  – Floods, earthquakes, and some disasters require additional coverage.

Want the best rate? Try these tips:

✅  Bundle policies  – Combine home and auto insurance for discounts.
✅  Raise your deductible  – A higher deductible means lower monthly payments.
✅  Improve security  – Alarms and safety features can lower your premium.
✅  Shop around  – Compare quotes to find the best deal.

Home insurance isn’t just required—it’s essential.  Protect your investment and your future by getting coverage early in the home-buying process.

Need help finding the right policy?  The team at  Vargas & Vargas  can be reached at  617-298-0655 .