Colony Title Associates

Should You Pay For Homeowners Insurance Up-Front or at Closing?

If you’re financing the purchase of your home through a mortgage, you are required to pay your homeowners insurance premium for the first year of homeownership by closing. This means you can either pay at closing time or up-front, prior to closing. So which is the best choice to make? Each has its own pros and cons, and your decision will depend on your individual situation. In this week’s blog, we’ll talk about these pros and cons in order to help you make an informed decision on the purchase of your homeowner’s insurance.

Homeowners Insurance: Up-Front or at Closing?


You’ll already be dealing with your homeowners insurance prior to closing, because you’ll order the policy before closing time. You also have the option to pay the premium up front.


The pros of paying your premium up-front include:


At Closing

It’s important to remember that if your down payment is less than 20% of the total cost of the home, you will most likely have to pay for your homeowners insurance at closing regardless. If your down payment is 20% or greater, here are some factors to consider.



Real Estate Closing Services from Colony Title Associates

Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.

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