Buying a home is one of the biggest financial moves your clients will ever make—and as their loan officer, you’re the one guiding them through every step of the process. But as you already know, one small hiccup can delay closing day.
Home insurance is one of those details that seems simple—until it isn’t. Between new coverage requirements, lender documentation, and last-minute policy changes, it can easily become the bottleneck that slows a file down. That’s why having a trusted insurance partner isn’t just convenient—it’s essential.
At The Barge Group, we created the Insure2Close Program to make insurance one less thing you have to worry about. We help your borrowers secure the right coverage quickly, eliminate communication gaps, and keep every file moving forward on schedule. Think of us as your insurance concierge team—here to make you look good to your clients.
Below, we’ve compiled the ten most common insurance questions borrowers ask, along with simple answers you can share. You don’t need to be an insurance expert—just a well-prepared loan officer with the right partner in your corner.
Why Insurance Can Make or Break the Closing Table
Before we jump into borrower questions, let’s acknowledge the reality you already face daily: closings are a race against time.
When insurance isn’t handled proactively, three things often happen:
- Delays in obtaining proof of coverage push the closing date back.
- Incorrect coverage amounts force last-minute re-disclosures or changes to the escrow.
- Borrowers shop online for the “cheapest policy” that doesn’t meet lender requirements—and now you’re left scrambling to fix it.
Through Insure2Close, we tackle those issues early. We connect directly with your borrowers, shop multiple carriers for the best fit, and deliver same-day quotes and proof of insurance so your underwriting team can move forward without interruption. You stay informed at every step, and your clients get a smooth, stress-free experience.
The Top 10 Insurance Questions Borrowers Ask
Here’s your quick-reference guide to the questions you’ll hear most often—and how to answer them with confidence.
1. “When do I need to have insurance in place?”
Answer: Borrowers should have their policy bound before the closing date—ideally within a week of receiving their clear-to-close. Lenders require proof of insurance (the “binder”) to finalize the loan file.
Insure2Close Tip: We provide same-day binders for most policies. Your clients can finalize their insurance as soon as they have a property under contract, keeping your pipeline on schedule.
2. “How much coverage do I need?”
Answer: Home insurance should be based on replacement cost—the cost to rebuild the home from the ground up—not on the market value. That number often comes from the insurance carrier’s reconstruction cost estimator.
Insure2Close Tip: We calculate accurate replacement cost values using carrier tools so borrowers aren’t over- or under-insured.
3. “What’s the difference between replacement cost and market value?”
Answer: Market value is what someone is willing to pay for the home today. Replacement cost is the amount required to rebuild it after a total loss. Market value includes land value, which isn’t insurable.
Insure2Close Tip: We educate your clients early so they understand why these numbers don’t match—and why that’s okay.
4. “Why did my premium change after underwriting?”
Answer: Carriers sometimes adjust rates based on updated data—like construction materials, roof age, or a new inspection report. These changes are normal and reflect more accurate risk assessments.
Insure2Close Tip: We communicate proactively with borrowers and lenders if premiums shift, ensuring escrow calculations stay aligned and surprises are avoided.
5. “Can I choose my own insurance company?”
Answer: Yes, borrowers can select any carrier that meets lender requirements. However, not all insurers process mortgagee clauses and binders with the same speed or accuracy.
Insure2Close Tip: Our agency shops multiple A-rated carriers and ensures all documentation meets lender standards, preventing delays caused by missing or incorrect forms
6. “What if I’m buying a home in a flood zone?
Answer: Flood insurance is typically required if the property lies in a FEMA-designated flood zone. Premiums depend on factors like elevation, flood zone type, and structure details.
Insure2Close Tip: We verify flood requirements early in the loan process and provide clear estimates so borrowers aren’t caught off guard at the last minute.
7. “What discounts can I get?
Answer: Borrowers can often save by bundling home and auto insurance, installing security systems, or choosing higher deductibles. Every carrier offers different options.
Insure2Close Tip: We handle discount comparisons for your borrowers and document all savings, so you can reassure clients they’re getting the best possible rate.
8. “What happens if I switch insurance after closing?”
Answer: Borrowers can switch carriers at any time, but they must notify their mortgage servicer. The escrow account will adjust once the new premium and refund from the old policy are processed.
Insure2Close Tip: We help borrowers coordinate mid-term changes smoothly, ensuring their escrow and lender records remain correct.
9. “Why do you need proof of insurance so early?”
Answer: Lenders must verify insurance before closing because it affects the total monthly payment and escrow setup. Waiting too long can stall the file.
Insure2Close Tip: We send binders directly to your loan processor and update you when coverage is active—no chasing paperwork or borrower confusion.
10. “What should I do if I’m bundling other policies?”
Answer: Combining policies—like auto, life, or umbrella—can save money and simplify billing. However, it’s important to finalize home insurance first to avoid closing delays.
Insure2Close Tip: We coordinate all policies behind the scenes so the home insurance file is ready for closing while additional bundles are processed.
How to Use Insurance to Strengthen Borrower Relationships
Smart loan officers know that every interaction shapes the borrower’s long-term impression. By offering clear, confident answers about insurance, you become more than a loan officer—you become a trusted advisor.
Here’s how to turn this part of the process into a relationship-builder:
- Be proactive, not reactive. Bring up insurance early in the process. A quick, “Have you started your home insurance yet?” positions you as the professional steering the ship.
- Educate without overwhelming. You don’t have to know every detail. Simply share that your partner, The Barge Group, will walk them through their options and make sure their coverage meets lender requirements.
- Provide helpful resources. Co-brand a short “Home Insurance Checklist” or share The Barge Group’s borrower guide. These small touches build trust and reduce anxiety for first-time buyers.
- Follow through post-closing. A quick email checking that their insurance premium and escrow are aligned is a thoughtful gesture that keeps your name top of mind when they refinance or refer friends.
When borrowers feel supported and informed, they associate that positive experience with you. That’s how long-term client retention and repeat business are built.
Partnering with The Barge Group with Insure2Close
At The Barge Group, our Insure2Close Program was designed specifically for loan officers like you. We know your success depends on smooth, timely closings and satisfied clients. That’s why our process is simple:
- Same-Day Quotes: We shop multiple top-rated carriers to find the right coverage fast.
- Insurance Concierge Service: We handle communication with your borrowers from start to finish—no chasing binders or paperwork.
- Co-Branded Resources: Provide your borrowers with helpful tools like our insurance checklist or homebuyers’ guide featuring your logo.
- Protection for Your Pipeline: We monitor policies and alert you to potential refinance opportunities or coverage changes that could impact your clients.
Our team operates as an extension of yours—professional, responsive, and dedicated to white-glove service. Whether you’re helping a first-time home buyer or a seasoned investor, we make sure insurance never slows you down.
Simplify the Process + Strengthen Your Business
In today’s lending environment, time and trust are everything. When you can answer borrower questions confidently and connect them with a partner who delivers, you set yourself apart from the competition.
Insurance doesn’t have to be a headache—it can be one of your strongest relationship-building tools. With The Barge Group’s Insure2Close Program, you’ll close loans faster, create happier clients, and gain a partner who’s just as invested in your success as you are.
Schedule a Partner Call today to learn how Insure2Close can streamline your next transaction and make you the loan officer every borrower wants to work with.