Arizona Home Insurance
Buyers Will Need To Have Arizona Home Insurance In Force Before Close Of Escrow
Arizona Home Insurance is required by mortgage lenders before they will fund a mortgage loan. A Tucson Home Buyer will need Arizona home insurance and Evidence of Insurance (EOI). The EOI must be provided to the lender and escrow officer BEFORE close of escrow.
Arizona Home Insurance should be obtained as soon as all inspections are completed and any repairs agreed upon.
The cost of the Arizona home insurance premium can be included in the closing costs should you, the buyer, choose that option. The Arizona Home Insurance premium is paid from the funds collect at close of escrow. Also, the buyer may elect to have the insurance premium included in their monthly mortgage payment. If that option is elected, the mortgage servicing company will pay the home insurance premium when they receive the invoice from the insurance company.
It is important to check that the correct mortgage lender information has been provided to the insurance agent handling your policies. Otherwise, the insurance company may not send the invoice to the correct party and your insurance may lapse.
One other option is to pay your home insurance premium yourself. To do this, you will need to discuss that option with your lender.
As the buyer, you will be contacted by the closing officer to confirm that you have your binder for homeowners insurance. Also they may want to see a receipt for the first-year’s premium. NOTE – In many cases the Arizona home insurance premium will be included in closing costs and the first years payment made by the escrow company immediately after Close of Escrow.
Also, when the mortgage lender maintains the escrow account, an additional amount equal to two months of premiums must be paid to fund the account. This adds to a total of 14 months of premiums due at closing.
The Insurance Agent you use will provide your lender and the closing officer the required Evidence of Insurance. This will be done as soon as you sign the policy documents.
Remember – Arizona real estate lender’s won’t fund a loan until they know the home is insured for at least the amount of the loan.
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