A policy pays to repair or rebuild after covered damage, such as fire or wind, and protects you if someone is hurt on the property. Flood damage is usually a separate policy, and in some areas the lender requires it.
Why it matters
The lender needs proof of coverage before closing, and the cost is part of your monthly housing payment. In Florida in particular it is worth getting quotes early, because premiums can vary a lot.
Where you meet it
Before closing, and every year after if it is paid through your escrow account.
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