What Is Homeowners Insurance and Why Do NH Buyers Need It Before Closing?

🏡 What Is Homeowners Insurance and Why Do NH Buyers Need It Before Closing?

If you’re buying a home in Plymouth, Campton, Rumney, Thornton, Ashland, or anywhere across Central NH, you’ll need to secure homeowners insurance before closing.

Lenders require it to protect the home — their collateral — and buyers rely on it to protect their investment from damage or loss. Without an active insurance binder, most NH lenders will not allow the closing to take place.

Here’s exactly what homebuyers need to know.

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What Does Homeowners Insurance Cover?

A standard homeowners insurance policy typically covers:

Fire and smoke damage

Wind and storm damage

Frozen or burst pipes

Theft and vandalism

Liability protection

Personal property

Damage to the home’s structure

Temporary housing if the home becomes uninhabitable

Some areas in NH may require additional coverage depending on risk factors.

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Special Coverage NH Buyers Should Consider

In certain parts of Central New Hampshire, buyers may need:

✔ Flood Insurance

Required only if the property is in a FEMA-designated flood zone.

✔ Wind/Hail Coverage

Important in regions with winter storms and high winds.

✔ Well/Septic Coverage

Optional, but helpful in rural towns like Rumney or Thornton.

✔ Equipment Breakdown Coverage

Covers heating systems, boilers, and major appliances.

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When Do NH Buyers Need to Provide Proof of Insurance?

Lenders require an insurance binder showing:

Coverage start date (your closing day)

The property address

Premium details

Lender listed as mortgagee

This must be submitted before the Closing Disclosure is finalized.

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Why Homeowners Insurance Matters in NH

Home insurance ensures protection against:

Winter-related damage (ice dams, frozen pipes)

Tree or storm damage (common in rural NH)

Liability issues

High repair costs on older homes

Fire or electrical issues in older barns/outbuildings

Without insurance, buyers risk financial loss — and lenders risk their investment.

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Q&A

Q: Can buyers shop around for the best insurance rate?

A: Yes — and it’s encouraged. Rates can vary widely between companies.

Q: Does homeowners insurance cover floods?

A: No — flood insurance is a separate policy if required.

Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com