It can cost you the house — and you won’t even see it coming
This is one of the most overlooked mistakes buyers make — and we’ve seen it kill deals more than almost anything else.
Let’s be honest:
Most people don’t think about homeowners’ insurance until right before closing.
They assume it’ll cost $1,000–$2,000 and just figure they’ll deal with it later.
But here’s the reality in today’s market:
Homeowners insurance costs have exploded — and for some buyers, it’s the reason they can’t close.
The Fallout Problem: Why Deals Die Over Insurance
About 1 in 5 real estate deals today fall apart before closing — and a huge number of them are because of homeowners’ insurance costs that weren’t properly factored in.
Here’s what happens:
- A buyer qualifies for a loan based on estimated monthly payments
- But no one gets an actual quote for insurance
- Then — right before closing — the real premium comes in… and it’s way higher than expected
- That increases the monthly payment
- And just like that, the buyer no longer qualifies for the loan
- Deal falls apart. Buyer loses the house.
We’ve seen it happen again and again — and it’s usually preventable with just a little advance planning.
Why It Matters So Much
Your homeowner’s insurance premium is rolled into your monthly mortgage payment.
So the higher the insurance, the higher your monthly payment — and lenders calculate your loan approval based on your monthly debt-to-income ratio.
If your premium is unexpectedly high (and right now, that’s common), it can push your payment just high enough to get your loan denied — even if you were approved earlier.
The House Karma Fix: Get Quotes Before You Start Shopping
At House Karma, we want to help you avoid this trap — and we’ve got a free tool to help you do exactly that.
We’ve partnered with Acrisure, one of the largest insurance networks in the country, to give you access to 100+ real insurance carriers in one simple quote engine.
You just:
- Enter the address of a property you’re looking at
- Answer a few basic questions
- Instantly get accurate quotes from over 100 insurance companies
✅ No sales pressure
✅ No obligation to buy
✅ Just real numbers so you can budget smart and qualify with confidence
You’ll get a realistic idea of what you can afford — and avoid the shock that sinks so many deals.
What Most People Don’t Know About Insurance Agents
Here’s a truth most buyers never hear:
Insurance agents don’t all shop the same carriers — and commissions vary from one company to another.
That means:
- Your local agent might only quote you 5 companies
- They might be biased toward the one that pays them the highest commission
- And you might overpay by thousands — every year
We’ve seen the same house quoted at $3,000 from one carrier and $8,000 from another.
Same property. Same buyer. Same coverage.
That’s why shopping matters.
Final Advice from House Karma
✅ Don’t wait until the end — get insurance quotes as soon as you make an offer, or even before
✅ Use the free House Karma insurance tool to shop 100+ companies instantly
✅ Don’t rely on one broker or agency — many only quote a handful of carriers
✅ If you’re already under contract, get a quote that same day — not the day before closing
✅ Re-shop your policy every year after you move in — you’ll likely save money as rates change
Bottom Line
Insurance can make or break your ability to buy a home — but most people don’t realize it until it’s too late.
Don’t be one of the many buyers who gets blindsided by a high premium and loses the home they love.
With House Karma’s free insurance quote tool, you can shop smart, budget right, and stay in control — before it becomes a crisis.
We’re not here to sell you insurance — we’re here to make sure no one takes advantage of you.
Let’s get you prepared, protected, and positioned to win.
