Insurance belongs in the early budget
A principal-and-interest estimate does not show the complete housing cost. Homeowners insurance and required flood coverage can change the total payment and the amount collected for escrow.
Use a property-specific insurance estimate as early as practical. A generic estimate may miss roof age, construction, prior claims, wind protection, location or coverage choices that affect the premium.
Homeowners insurance and flood insurance are separate
Most homeowners policies do not cover flooding. Flood insurance is separate coverage and may be required as a condition of the mortgage depending on the property's flood-zone determination and loan.
Being outside a high-risk flood zone does not mean flooding is impossible. Buyers can evaluate coverage even when a lender does not require it.
Property and association questions
Roof condition, electrical systems, plumbing, age and repairs can affect insurability. A property that meets one mortgage program's appraisal requirements may still face a separate insurance issue.
For condominiums, both the unit policy and association master coverage may matter. The lender may review deductibles, coverage, reserves and other project information under the selected program.
Reduce avoidable closing surprises
Ask for insurance quotes during the inspection period when possible, share accurate property details and tell the lender about flood coverage and association charges.
If the quote changes, request an updated payment and cash-to-close estimate before the change becomes a last-minute approval or budget problem.