Homeowners Insurance in Crown Point: What to Have Before You Close

If you are buying with a mortgage, plan on having homeowners insurance in place by closing day. The Consumer Financial Protection Bureau (CFPB) says lenders generally require proof of coverage, and flood is a separate policy. For homeowners insurance in Crown Point, the requirements come from your lender, federal escrow rules, and Indiana insurance law. At our Crown Point shop we put insurance on your calendar the week the seller signs, so the proof, the first premium, and the escrow lines are settled before closing.

We’re the shop on South Main in Crown Point. Love Thy Neighbor. Call (219) 801-0432.

This is how our shop handles homeowners insurance for buyers in Crown Point and the Northwest Indiana towns we work. We cover what your lender needs, what lands on your Closing Disclosure, why flood is its own policy, and what Indiana law says about canceling a policy. We do not sell insurance and we do not pick your carrier. When you’re ready to look, search homes on Realest.com. You can see homes for sale and sold homes across Indiana and Illinois there.

Start the buyer path on Buy. More buying guides are on Learn: Buying and Learn: Financing. Short questions go to Ask Realest. For the full cash picture at the table, read our buyer closing costs page for Lake and Porter counties.

What your lender needs

The CFPB says homeowner’s insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. It says lenders generally require proof of that coverage when you have a mortgage. You may hear it called hazard insurance. It is not the same as mortgage insurance, which the CFPB says is typically required when your down payment is less than 20 percent.

You can shop for homeowner’s insurance on your own and pick the provider and plan that fit you. The cost shows on page one of your Loan Estimate, in the Projected Payments section. Read the CFPB answer on what homeowner’s insurance is and why lenders require it.

If coverage lapses. Your lender is allowed to buy insurance and charge you for it, with advance notice. Under 12 CFR 1024.37(c)(1)(i), the servicer must deliver or mail a written notice at least 45 days before it charges you for force-placed insurance. The CFPB says that kind of policy may cover only the lender, not you, and may cost more than a policy you buy yourself.

How we line up insurance from offer to closing

1. Start quotes when the seller signs. We ask buyers to call an insurance agent or two the same week the offer is accepted. Bring the address, the closing date, and your lender’s name. Your loan officer can tell you what coverage the loan needs. See Mortgage Pre-Approval With Our Crown Point Shop for the lender side.

2. Share what the inspection found. When the report comes in, we go through it with you. If the roof, the furnace, or the wiring came up, tell your insurance agent before the policy is written. Under Indiana Code 27-7-12-6, fraud or material misrepresentation in getting a policy is one of the grounds an insurer can use to cancel it. Read Home Inspections With Our Crown Point Shop.

3. Send proof where the lender asks. Your lender tells you what proof of coverage it needs and where it goes. We keep your insurance agent, your lender, and the title company working toward the same closing date.

4. Check flood the same week. FEMA says lenders must require flood insurance for a federally regulated mortgage when the property sits in a regulatory floodplain. If the lender flags the house, get flood quotes now. Start with our Flood Zones and Flood Insurance page for Lake and Porter counties.

5. Read the Closing Disclosure with us. The CFPB says lenders must give you the Closing Disclosure three business days before your scheduled closing. We sit with you and match the insurance lines to your quote.

6. Keep coverage live after closing. Escrow pays the bill, or you do. The Indiana Department of Insurance tells homeowners to review coverage at least once a year.

What shows up on your Closing Disclosure

The CFPB Closing Disclosure explainer puts insurance in two places. Under Prepaids, it says it is common to pay your first year’s homeowner’s insurance premium in advance at closing. Under Initial Escrow Payment at Closing, you fund the starting balance of your escrow account.

The escrow cushion has a cap. Under 12 CFR 1024.17(c)(1), the servicer can collect one-twelfth of the yearly escrow bills each month. It can add a cushion no greater than one-sixth of the estimated total annual payments from the account.

Taxes ride in the same account. The CFPB says many lenders require taxes and insurance to be paid through escrow, and your escrow payment changes when premiums or taxes change. For the tax side, read Indiana Homestead Deduction for Lake and Porter County.

If your Closing Disclosure shows no escrow account, the CFPB says some lenders charge an escrow waiver fee. Talk to the lender if you would rather pay monthly. Our buyer closing costs answer covers the rest of the cash to close.

Flood is a separate policy

The CFPB says standard homeowner’s insurance does not cover damage from earthquakes or floods. FEMA’s myths and facts about flood insurance says the same thing: homeowners policies do not cover flooding as a rule.

Timing matters at closing. FEMA says a new flood policy has a 30-day waiting period, with an exception when the purchase is tied to a mortgage. Under 44 CFR 61.11(b), flood coverage bought in connection with making a loan takes effect at the loan closing, as long as you apply and present the premium at or before closing.

What Indiana says about coverage and cancellation

How much to buy. The Indiana Department of Insurance says your home should be insured for at least 80 percent of its replacement value. Below that, a claim is settled on actual cash value, which takes depreciation. It says contents are typically covered at 50 percent of the dwelling amount, and your policy may pay reasonable additional living expenses if a covered loss forces you into a hotel for a while.

The department also tells homeowners to list belongings and their value before buying a policy, and to keep that inventory somewhere away from the house.

The first 60 days. Under Indiana Code 27-7-12-6, once coverage has been in effect more than 60 days, or after a renewal takes effect, an insurer can cancel only for listed reasons. Those include nonpayment of premium, fraud or material misrepresentation, and a change that substantially increases a hazard insured against. Under Indiana Code 27-7-12-3(b), notice of cancellation must be mailed at least 10 days ahead for nonpayment or in the first 60 days. For other cancellations after the first 60 days, the notice comes at least 20 days ahead.

Claims and renewal. The department’s claim tips warn that insurers may weigh claims activity, including small claims, when deciding whether to renew. Indiana law limits when an insurer can cancel a policy. The department says no rule makes an insurer renew once the policy term ends.

Hard to place. The department’s insurance types page lists the Indiana FAIR Plan, run by the Indiana Basic Property Insurance Underwriting Association for owners turned down by at least three insurers. The CFPB says owners of high risk homes might turn to state FAIR plans as a last resort, and that if a home is insured through one, you could have trouble finding private, low cost homeowner’s insurance.

Homeowners insurance by town

The lender rule is the same in every town. The house is not. Buyers come to us for Crown Point, St. John, Schererville, Dyer, Munster, Highland, Cedar Lake, Lowell, Merrillville, Hobart, and Valparaiso.

For what living there is like, Real Estate USA keeps guides to homes in Crown Point, St. John, Schererville, Dyer, Munster, Highland, Cedar Lake, Lowell, Merrillville, Hobart, and Valparaiso. New to the county seat? Read Real Estate USA’s Moving to Crown Point, Indiana guide.

The tradeoffs to weigh

Higher deductible or lower premium. The Indiana Department of Insurance says consumers pay less for policies with deductibles. Pick a deductible you could pay the week after a storm.

Escrow or paying it yourself. Escrow spreads the premium and taxes across your monthly payment. Without it, the CFPB says to budget for those large bills yourself.

A small claim or your next renewal. Indiana regulators warn that small claims can count at renewal. Ask your agent how a claim affects you before you file one.

Rebuild cost or purchase price. The department’s test is replacement value, the cost to rebuild. Ask your agent for that number. The price on your purchase agreement is a different number.

What we will ask you back

Expect questions about your lender, your closing date, the agent quoting your policy, the inspection items you want them to see, and whether you want escrow. Buying for the first time? Grab our First-Time Home Buyer Packet. Comparing loans? Read Mortgage types Northwest Indiana buyers actually use. For the weeks after the seller says yes, read From Offer to Closing and Earnest Money With Our Crown Point Shop.

Questions about homeowners insurance in Crown Point

Do I need homeowners insurance before I close on a house in Indiana?

If you are using a mortgage, plan on it. The CFPB says lenders generally require proof that you have homeowner’s insurance. We put insurance quotes on your calendar the week your offer is accepted. Call us at (219) 801-0432. We are licensed in Indiana and Illinois.

Does homeowners insurance cover flooding in Northwest Indiana?

Not as a rule. The CFPB and FEMA both say standard homeowners policies do not cover flood damage. Flood is a separate policy. When you buy it in connection with making your loan, federal rules let it take effect at the loan closing if you apply and pay at or before closing.

Why does homeowners insurance show up twice on my Closing Disclosure?

The CFPB lists the first year’s premium under Prepaids, where it is common to pay it in advance at closing. The second line is the Initial Escrow Payment at Closing, which starts your escrow balance. Federal rules cap the escrow cushion at one-sixth of the estimated yearly payments from the account.

Can my insurer cancel a new homeowners policy in Indiana?

Under Indiana Code 27-7-12-6, once coverage has been in effect more than 60 days, an insurer can cancel only for listed reasons, such as nonpayment, fraud or material misrepresentation, or a change that substantially increases a hazard. Be accurate on the application.

How much homeowners insurance should I buy?

The Indiana Department of Insurance says to insure your home for at least 80 percent of its replacement value. Below that, a claim is settled on actual cash value, which takes depreciation. Your insurance agent sets the number with you. We do not sell insurance.

How do I start buying a home with Realest?

Call (219) 801-0432 or email saso@realest.com. Visit us at 112 S. Main St., Suite B, Crown Point, IN 46307. Bring your pre-approval letter, your target closing date, and your insurance agent’s name if you have one. Love Thy Neighbor.

Talk to the shop

Realest, 112 S. Main St., Suite B, Crown Point, IN 46307

(219) 801-0432 | saso@realest.com

Love Thy Neighbor

Top photo: J. Claude Rumsey House, Lowell, June 2012 by Nyttend, Public domain, via Wikimedia Commons. Cropped.

Next reads: Buy, Learn: Buying, Buyer closing costs, Flood zones, Home Inspections shop, Crown Point hub. Homes for sale and sold homes in Indiana and Illinois: Search homes on Realest.com.

Sources

• Consumer Financial Protection Bureau: What is homeowner’s insurance? Why is homeowner’s insurance required?
• Consumer Financial Protection Bureau: Closing Disclosure explainer (Prepaids, Initial Escrow Payment at Closing, three business days)
• Consumer Financial Protection Bureau: What is an escrow or impound account?
• 12 CFR 1024.17, escrow accounts (Regulation X), cushion limit at 1024.17(c)(1)
• 12 CFR 1024.37, force-placed insurance (Regulation X), 45-day notice at 1024.37(c)(1)(i)
• Indiana FAIR Plan (Indiana Basic Property Insurance Underwriting Association): consumers page
• Consumer Financial Protection Bureau, Ask CFPB: questions to ask about flood and disaster risk when buying a house (FAIR plans)
• FEMA: Myths and Facts About Flood Insurance
• 44 CFR 61.11, effective date of flood coverage, loan closing exception at 61.11(b)
• Indiana Code 27-7-12, termination of residential policies (official PDF, Indiana General Assembly, 2026), sections 3 and 6
• Indiana Department of Insurance: Property Insurance
• Indiana Department of Insurance: Insurance Claim Tips
• Indiana Department of Insurance: Types of Insurance (Indiana FAIR Plan link)

This page is shop process, not legal or insurance advice. Your loan documents and your insurance policy set the terms.