Why do I have to pay 1 year of Homeowners Insurance in advance at closing?

Lenders require one year of homeowners’ insurance paid in advance at closing to protect their investment in the property and to limit the amount of times insurance is verified to 1x a year vs up to 12x a year.

Should you sell or pay off your property within 1 year, we recommend contacting your Homeowners Insurance company and requesting a refund of the remaining unused policy premium.

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