Once you have an attorney and a mortgage lender, it is time to shop for homeowner's insurance. There are several kinds of insurance that the lender will require you to purchase before closing. Homeowner's or hazard insurance equal to the cost of replacing the entire house protects you and the lender against loss if your house is damaged or destroyed.
A homebuyer's insurance package may also include personal liability insurance (someone else's injury on your property), personal property insurance coverage for loss and damage due to theft and other occurrences and dwelling coverage to protect against loss due to fire, theft, weather and other kinds of damage. Note that homeowner's insurance most often does not include flood insurance. There are also a number of websites with information about how to insure your home - for general information, check out the Insurance Information Institute. Also, be sure to contact your lender about specific requirements for insurance payments.
The following resources may be helpful in finding the best homeowner's insurance rates:
HPD's Guide to Homeownership