Insurance guide
What Realtors Should Know About Insurance Before Escrow
Early insurance review can identify underwriting concerns before they threaten a closing timeline.
Educational examples updated . This update does not represent a new staff or legal review.
What to compare in your policy
Work backward from the closing date. Allow time for the insurer's property review, required repairs or documents, and lender acceptance—not just the initial quote.
These are educational benchmarks, not a recommendation for every applicant.Insurance availability should be reviewed early, especially for properties in wildfire areas, older homes, unusual construction, prior claims, deferred maintenance, or properties with multiple units and accessory structures.
The insurance professional may need the property address, expected closing date, occupancy, buyer information, lender requirements, and details about the roof, plumbing, electrical system, heating, and prior losses. Starting early provides time to address inspections or underwriting questions.
A quote is not proof that coverage is bound. Escrow should obtain the final evidence of insurance, invoice, effective date, mortgagee information, and confirmation that all binding requirements are complete.
A quote is a proposal; binding starts coverage
Underwriting is the insurer's review of the applicant and property to decide whether to offer coverage and on what terms. A price displayed on a quote does not complete that review. Binding means coverage has been put into effect by someone authorized to do so, for an agreed effective date and terms.
Hypothetical example: a buyer has a quote for a Moreno Valley home, but the insurer still needs roof photographs. If those photographs reveal a condition it will not accept, the quote alone will not protect the closing. Ask what remains outstanding while there is still time to resolve it or compare another option.
Give escrow a complete handoff
Ask the lender which coverage, deductible, and mortgagee wording it requires; the mortgagee is the lender listed as having a financial interest in the home. If two policies are needed, send both for review. Before closing, confirm the insured names, address, effective date, invoice, evidence of coverage, and payment arrangement. Ask us to identify outstanding insurance items—not to promise that a quote guarantees closing.