When Should I Sign a Homeowners Insurance Policy (agent, mortgage, mortgage company)

[Evado]

Hello all,
I would like to know when I should sign the homeowners insurance policy. I am a first time home buyer, and during the process of getting the loan approved the loan officer (LO) requires that I purchase a homeowners insurance. After getting a quote, I sent him the insurance company's information. A few days later, I started receiving in my email a policy to sign. I asked the LO if I have to sign the policy right now. He said to wait until I have a closing date scheduled. But my real estate agent said "go ahead and sign it. Your insurance will be paid by the mortgage through your escrow account". Which advice should I follow?
I wonder at which time I should sign the homeowners insurance policy?
Any help?
Thanks.

[aggieplaya]

Are you signing the 'application' forms or what exactly do they say? I don't think there is any harm in getting things signed now as that would probably help get things in order for your escrow acct that will need to be setup in time for close, so I think you would be ok either way

[Snow-Flake]

Sign it at closing

[Evado]

Yeah you saw it right. It is "HOMEOWNER APPLICATION".

[sossie]

I believe you will be required to have your insurance in place prior to closing....your mortgage company/title co will contact you and ask you for who you are getting your insurance through and agent and they will then contact them to make sure your policy is in place and adequate coverage to carry the loan. It will be effective the day of closing-prvided you pay for it of course...

[aggieplaya]

Application has to be filled out first so definitely submit that one. Keep in mind that the insurance will have an "effective date" indicating when the policy starts so as long as the effective date is same as closing date they won't charge you early or anything like that.

[Evado]

Originally Posted by aggieplaya

Keep in mind that the insurance will have an "effective date" indicating when the policy starts so as long as the effective date is same as closing date they won't charge you early or anything like that.

Now I understand why the LO said to wait until I have a closing date scheduled. So if I sign right now and the file gets delayed, the will start charging me. Do I get it right?
Thanks

[aggieplaya]

I suggest you call the insurance company and they can answer best. I think if you have a closing date, they can set the same date as your effective start date and if for some reason it is delayed they could probably change it just as easy, but better to ask them to make sure

[mSooner]

I think we signed it in advance with an effective date of the closing date. Although our closing date got pushed back a few days (damn foreclosure) so I think it was actually effective a few days in advance.

[Evado]

Thanks all for your input. Great people in this forum.