Insurance and the closing timeline
Lenders require homeowners insurance to be in place before closing — typically with the first year's premium paid up front. Don't wait until the week of closing. Two weeks is comfortable; one week is tight; the day before is a problem.
What to look at, not just the price
- Dwelling limit set to actual rebuild cost, not purchase price
- Wind/hail deductible — flat vs. percentage, in dollars
- Roof settlement: RC, ACV, or schedule
- Water/sewer backup endorsement (especially for finished basements)
- Liability limit ($300K minimum, $500K is common)
Escrow basics
Most Minnesota mortgages escrow taxes and insurance: the lender holds a portion of your monthly payment and pays both bills on your behalf. Both can change at renewal — so your monthly payment can change even when your loan terms haven't.
Inspection and insurability
Home inspections aren't just for negotiation — they affect insurability. Roof age, knob & tube wiring, federal pacific panels, polybutylene plumbing, oil tanks, and certain dog breeds are common reasons a Minnesota carrier will decline or surcharge a policy.
First-time homebuyer checklist
- Bind insurance 10–14 days before closing.
- Set dwelling limit using a rebuild calculator, not market value.
- Add water/sewer backup if there's any finished basement.
- Confirm wind/hail deductible in dollars and write it down.
- Set up online access to your policy and declarations page.
- Save the agent's direct contact for after-hours storm questions.
More resources for Minnesota homebuyers
Visit mnhbc.com for additional Minnesota homebuyer resources including financing, down payment, and first-time buyer programs.