If you are assuming a mortgage or putting a new mortgage on the property, it is a requirement of all mortgage companies that, at the time you purchase the property, you have in your possession a copy of the fire insurance policy in an amount at least equal to the amount required by the mortgage company. The loss under the policy must be payable to the mortgage company pursuant to the mortgage instructions.

Your lawyer will not conclude the purchase of a property on your behalf unless they have in their hands, by the closing date, a copy of the insurance policy or a letter signed by the insurance company setting forth the details of the policy and confirming that the house is fully covered.

If you are not going to be moving into your home immediately, you should point this out to your insurance agent as, under many policies, the insurance becomes void if the property is left vacant. Your lawyer will also recommend that all policies have an effective date commencing the day before the closing is to take place.

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