Normally, your lender will require you to provide evidence of insurance on your new home prior to closing. This will typically be noted as "hazard insurance" on closing documents if the first year's premium is to be paid at closing. It is best to contact your insurance provider right after you have an accepted contract so that you do not take the risk of being denied coverage at the last minute.

One reason you could be denied coverage is previous claims on the property you are trying to purchase. To find out more information about claims on a property you may want to ask the seller for a C.L.U.E.® (Comprehensive Loss Underwriting Exchange) Report. They can obtain this report from theirinsurance provider. C.L.U.E.® Personal Property report provides a five year history of losses associated with an individual and his/her personal property. CLUE reports are protected by the Fair Credit Reporting Act and can only be accessed by the owner or lender for the property.

For more information about CLUE reports, go to http://choicetrust.com