Securing homeowners insurance is an essential part of the home-buying process, but in a mountainous region like ours, wildfire risk can make it costly—or even impossible—to obtain coverage. Some insurance carriers temporarily stop writing new policies, particularly during peak wildfire season in the summer, which can leave buyers scrambling for options.
Additionally, you have an Insurance Contingency, and the deadline for securing a policy typically aligns with your Inspection Notice or Inspection Resolution deadline. That means you need to find out sooner rather than later whether you can insure your home at a reasonable price—waiting too long could leave you in a difficult position if coverage is unavailable or unexpectedly expensive. As soon as you schedule your home inspection, start reaching out to insurance providers to confirm your options.
One of the mortgage underwriter’s requirements during the underwriting process is for you to set up homeowners insurance, so it’s best to get started on this task now. For most buyers, a home is the largest purchase they’ll ever make, and protecting it with adequate insurance is crucial.
I strongly recommend shopping around for homeowners insurance, as rates can vary dramatically between providers. A good starting point is checking with the company that insures your car, as bundling policies often results in discounted rates. After that, reach out to my three recommended insurance providers for additional quotes.
Lonetree Insurance
Dave Harriman
406-219-7650
Marsh McLennan Agency
Mark Gilman
406-862-5037
mark.gilman@marchmma.com
Goosehead Insurance
Scott Countryman
406-249-8422
scott.countryman@goosehead.com
Here’s a great article with tips on shopping for your homeowners insurance policy.
Make sure your homeowners insurance policy goes into effect the day before closing. That way, if something happens—such as a fire damaging the home while you're on your way home from closing—you’ll be covered.
I had an out-of-state buyer who closed on their home late in the day, and by the next morning, my phone was ringing off the hook—neighbors were calling to report that a huge tree had fallen overnight due to a storm. It was an unexpected first day of homeownership and definitely not the call I wanted to have with my buyer, especially since they hadn’t even arrived in town yet. Situations like this highlight why it’s so important to have coverage in place before closing, ensuring you're protected the moment you officially own the home.
Additionally, your mortgage underwriter will require proof of insurance before approving your loan, so be sure to get proper documentation from your insurance company and provide it to your lender as soon as possible.
