Fire Insurance in a Real Estate Purchase

It is always a good idea to obtain a fire insurance policy as at the date of closing. 

In transactions where a mortgage is involved, obtaining a fire insurance policy that names the lender as a loss payee is usually one of the requirements of the loan. 

In these circumstances, the mortgage instructions will set out the type of coverage that is required as well as the details of the lender which will need to be added to the policy.