Quick answer: You need homeowners insurance in place on your closing date, and your lender needs proof of it — a binder or declarations page naming them as mortgagee — before closing. In NC and SC, start shopping when you go under contract and bind coverage 7–10 days before closing so your lender and closing attorney aren’t waiting on you.
Why does my lender need proof before closing?
The house is the lender’s collateral. No proof, no loan funding.
What exactly do I send?
Binder or dec page, mortgagee clause with loan number, paid receipt if the first year is paid at closing. (We send it for you.)
What if I’m closing in less than a week?
It’s usually doable. Have the address, year built, square footage, roof age and inspection report ready.
What can delay it?
Old roofs, prior claims on the property, homes in flood zones, wood stoves, trampolines or pools, and vacant homes. It’s best to disclose everything to your insurance agent so we can properly cover the risk for closing.
A simple timeline
Under contract → quotes (days 1–5) → choose policy (2–3 weeks out) → bind and send proof (7–10 days out) → coverage starts at closing.
The NC/SC angle
Both states use attorneys for real estate closings, so your closing attorney’s office will typically ask for the insurance information along with your lender. We will issue the policy for your closing date and send the lender a “binder” or proof of insurance with your loan # and mortgagee clause.