Homeowners insurance in Georgia: what it covers and how to shop for it before closing
Your lender will not close without proof of insurance — and some houses are much harder or more expensive to insure than others. Find out which kind you are buying early.
Your lender requires it, and it belongs in your budget
Every mortgage requires homeowners insurance, usually paid through your escrow account as part of your monthly payment. The premium is a real share of what a house costs to own, and it varies a great deal by home. Get quotes during your due diligence period, not the week before closing — if a house is hard to insure, you want to know while you can still walk away.
What a standard policy covers
- Dwelling — the structure itself, for covered perils like fire, wind, hail, lightning and falling trees.
- Other structures — detached garages, fences, sheds.
- Personal property — your belongings.
- Loss of use — extra living costs if a covered loss forces you out.
- Liability and medical payments — if someone is hurt on your property.
What it usually does not cover
- Flood — needs a separate policy. See flood zones in Georgia.
- Earth movement and sinkholes in most cases.
- Wear and tear, maintenance and slow leaks — insurance is for sudden events, not aging.
- Termite and pest damage.
- Sewer or drain backup — often available as an add-on endorsement.
Wind and hail deductibles
Georgia gets hail, severe thunderstorms and the occasional tornado. Many policies carry a separate wind/hail deductible, sometimes expressed as a percentage of the dwelling coverage rather than a flat dollar amount. A percentage deductible on an expensive house can be a large number. Ask every insurer to state the all-perils and wind/hail deductibles in dollars so you compare like with like.
What drives your quote
Insurers set premiums from the property and from you. Things that commonly matter:
- Roof age and material — insurers often ask, and an older roof can mean higher premiums, limited coverage for the roof, or difficulty finding a policy.
- Past claims on the property — a CLUE report, which a seller can request, shows insurance claims filed on the home in recent years. Ask for it.
- Age and condition of systems — electrical panel type, plumbing material, HVAC age.
- Distance to a fire hydrant and fire station — relevant on rural acreage.
- Your own claims history and credit-based insurance score, where allowed.
- Replacement cost — what it would cost to rebuild, which is not the same as the market price.
An insurance checklist for your due diligence period
- As soon as you are under contract, ask the seller for the roof's age (and any receipts), the electrical panel type, the HVAC and water heater ages, and a CLUE report.
- Request quotes from at least two or three insurers or an independent agent, giving them the same coverage amounts and the actual address.
- Ask each one directly whether anything about this house — roof, wiring, past claims, a trampoline or pool, a wood stove — limits coverage or requires an inspection.
- Add the premium to your monthly budget along with taxes and HOA dues, and check it against what your lender pre-approved you for.
- Get a flood quote if the home is near water, even outside a mapped flood zone.
- Decide before due diligence ends. If no insurer will write a reasonable policy, that is a reason to negotiate or terminate while you can.
Dwelling coverage is not the sale price
Insurers cover what it would cost to rebuild the house, not what you paid for it. Your purchase price includes land, location and market demand; rebuilding includes labor, materials and code requirements. The two numbers can differ a lot in either direction. Ask each insurer how they estimated replacement cost, and whether the policy includes extended replacement cost or building-code upgrade coverage — older homes rebuilt after a loss may need upgrades the old house never had. Underinsuring to save premium is a bet that you will never need the policy.
How insurance shows up at closing and in your payment
Most buyers pay the first year's premium before or at closing; it appears among the prepaid items on your Closing Disclosure. If your loan has an escrow account, the lender also collects a cushion of a few months' premium at closing, then adds one-twelfth of the annual premium to each monthly payment and pays the renewal for you. When the premium changes at renewal, your escrow payment changes with it — a common reason a fixed-rate mortgage payment still goes up. See our Georgia closing costs guide for the full list of prepaids.
How to shop
Get at least two or three quotes for the same coverage. Ask for replacement cost on the dwelling, check the deductible structure, and ask what discounts apply for bundling, security systems, newer roofs or claim-free history. Once you choose, the insurer sends a binder or declarations page to your lender and closing attorney before closing. Condo buyers need an HO-6 policy that complements the association's master policy — see our HOA guide.
Common questions
When should I get homeowners insurance when buying a house?
Get quotes during your due diligence period, then bind the policy before closing. Your lender and closing attorney need proof of coverage effective on the closing date.
Does homeowners insurance cover termites or flooding?
No. Termite damage is considered maintenance, and flood needs a separate policy.
What is a CLUE report?
A report of insurance claims filed on a property in recent years. Ask the seller for one; it can reveal past water, roof or other damage.
Why is insurance so expensive on some homes?
Roof age, past claims, the rebuild cost, distance from fire protection and local storm risk all move premiums. Two similar-looking houses can price very differently.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.