The short answer
When you buy a house, the lender will want written confirmation of insurance before it releases the mortgage money, usually through your lawyer or notary. That means arranging a policy that starts on or before possession day. Insurers price it from the house's age, construction, updates and location, and the inspection report often answers their questions. A licensed broker can compare insurers and issue the confirmation the lender asks for.
- Buyers with an accepted offer and a financing condition coming due
- First-time buyers who have never arranged a home policy
- Buyers whose home inspection turned up an old roof, wiring or oil tank
- People choosing between a condo unit and a freehold house
- Anyone whose lawyer has asked for proof of insurance before closing
4 licensed brokers in the network handle this. In Alberta, Canada, a request for home insurance when buying a house can be offered to up to three of them, chosen because they are licensed for this line and place. They are test brokers while we are in demo.
See the brokers → Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
01 / What it covers
The parts worth understanding
Proof of insurance for the lender
A binder letter or confirmation of insurance shows the address, the start date, the building limit and the lender listed on the policy. The lender or your lawyer usually asks for it in the days before funding.
The mortgage clause
Naming the lender on the policy gives it a right to be paid on a building claim and to be told if the policy is cancelled. The exact wording comes from the lender's instructions, so pass them to the broker unchanged.
The start date
Your purchase contract says when the risk of loss passes from seller to buyer, and your lawyer can confirm it. Policies are often set to begin on the funding or possession date, whichever comes first.
What the inspection report changes
Roof age, the electrical panel, pipe material and heating type are the facts insurers ask about first. An inspection that flags one of them may mean questions, a photo request or conditions before cover is offered.
Condo unit or freehold house
A freehold buyer insures the whole building. A condo buyer insures what the corporation does not, so the corporation's documents decide how the unit policy is built.
Title insurance is a separate product
Title insurance deals with problems in the ownership record, such as liens or errors, and is usually arranged through the closing lawyer. Property insurance deals with physical loss and liability. Neither replaces the other.
02 / Get ready
Bring this, and expect these questions
Gather
- The accepted offer, with the address, the possession date and any financing deadline
- Your lender's name and branch, the mortgage number if issued, and any written insurance instructions
- Your lawyer or notary's contact details, since they often collect the proof of insurance
- The full home inspection report, including photos of the electrical panel and roof
- The listing sheet showing year built, finished floor area and basement development
- Any seller disclosure statement, plus receipts the seller has shared for updates
- For a condo, the corporation's insurance certificate and the bylaws on insurance
- Your own claims history on any property you have owned or rented
- Your current tenant or home policy, which may need to end or be moved
A broker will ask
- What is the possession date, and when does the lender need the confirmation?
- Did the inspection note anything about the roof, wiring, plumbing or heating?
- Has the seller mentioned past water, fire or sewer problems at the address?
- Is the house freehold, or a unit in a condominium corporation?
- Will anyone rent part of the house, or will it sit empty before you move in?
- Do you plan renovations soon after taking possession?
- Have you had a claim, a cancellation or a gap in cover in the past several years?
- Is there a wood stove, oil tank, pool or other feature insurers ask about?
- Do you hold a tenant or home policy now that should end on moving day?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
A first-time buyer with a five-day financing condition
A nurse has an accepted offer on a 1970s bungalow with a short window to remove the financing condition. The lender has sent a list of insurance requirements and the lawyer wants proof a week before possession.
First steps. Send the broker the offer, the inspection report and the lender's requirements the same day. Ask what the insurer needs to confirm cover, how long a binder letter takes to issue, and whether any feature of a 1970s house will slow it down.
An inspection that found an original electrical panel
A couple buying an older two-storey learned from their inspector that the panel and some wiring look original. The seller is unsure of the history, and the conditions come off in four days.
First steps. Get the inspector's photos of the panel and wiring and any notes on its condition. Ask the broker whether insurers will offer cover as it is, with conditions or only after an electrician's report, and raise the answer with your realtor before the conditions deadline.
A buyer choosing between a townhouse condo and a semi
A young family has two homes in mind: a townhouse in a condominium corporation and a freehold semi-detached on the next street. They want to understand how insurance differs before they choose.
First steps. Ask the condo seller for the corporation's insurance certificate and the bylaw on deductibles, and ask the semi's seller for the age of the roof and furnace. Share both with the broker and ask what each owner would be responsible for insuring.
05 / Words you will hear
The jargon, in plain words
- Binder letter
- A written confirmation that insurance is in place or starts on a set date, used by lenders and lawyers as proof before a mortgage is funded.
- Mortgagee
- The lender named on the home policy. It has a right to be paid on building claims and to be notified if the policy is cancelled or changed.
- Possession date
- The day the buyer takes control of the house under the purchase contract. Insurance should already be running by then, and often a little earlier.
- Title insurance
- A separate policy covering certain problems with the ownership record, such as liens or registration errors. It does not pay for fire, water or liability.
- Mortgage default insurance
- Insurance that protects the lender if a borrower stops paying, often required with a smaller down payment. It is not home insurance and covers no damage.
06 / Common mistakes
What trips people up
- Waiting until the week of closing to start, then scrambling to get a binder letter in time.
- Starting the policy on the day you move in when the lender funds a day or two earlier.
- Leaving an inspection finding out of the application because the seller said it was fine.
- Confusing title insurance or mortgage default insurance with the home policy the lender requires.
- Assuming a condo unit needs no policy of its own because the building is insured.
- Cancelling the old tenant or home policy before the new one has actually started.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles home insurance when buying a house takes it from there.
07 / Questions people ask
Straight answers
When should I get home insurance when buying a house?
Start once the offer is accepted and the financing condition is close, because the lender usually wants confirmation before it funds. Leave enough time for the insurer to ask questions about the inspection or the house's systems. The policy should start no later than the date the risk passes to you, which your lawyer can confirm from the purchase contract.
What is a binder letter for a mortgage?
It is a short document from the insurer or broker confirming that a policy is in place or will start on a set date. It names the address, the building limit, the start date and the lender as mortgagee. Lenders and lawyers use it as proof before releasing funds, so give the broker their exact requirements.
Does the home inspection affect my insurance?
It can. Insurers ask about the same things inspectors look at: roof age, electrical type, pipe material, heating and signs of water. A report that flags one of these may lead to extra questions, photos or conditions. Sharing the report early lets the broker find out how insurers will treat it before your conditions expire.
What is the difference between title insurance and home insurance?
Title insurance protects against problems with the ownership record, such as an undisclosed lien, an error in the registration or certain kinds of fraud. Home insurance protects against physical damage to the house and contents and your liability. They are bought separately and do different jobs. Your lawyer or notary can explain whether title insurance is part of your closing.
Is a condo purchase insured differently from a house?
Yes. The condominium corporation insures the building under its own policy, and the unit owner insures belongings, liability, improvements and their share of certain charges. The corporation's bylaws and insurance certificate set the boundary. A house buyer insures the whole structure, so the rebuild cost of the house becomes the central number.
What if the insurer finds a problem after I move in?
Some insurers inspect after the policy starts or ask for information they did not have at application. If they find a condition such as a failing roof or unsafe wiring, they may ask for repairs within a set time, change the terms or give notice that cover will end. Telling the broker what you know before closing reduces that risk.
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General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.