The insurance provides unlimited buildings and contents cover, while the deal is available to first-time buyers who apply for mortgage between 8 July and 18 August.
The refunded money will be paid back into the account making mortgage payments within 60 days of the mortgage start date.
Craig McKinlay, mortgage director at Halifax, said: “Upfront costs when purchasing a new property can add up and first-time buyers often fail to account for the cost of home insurance when planning the finances for their new home, so we’re delighted to be able to make their lives easier and provide the added peace of mind that their home is fully protected.”
Customers who have or open a Halifax current account will also receive £150 cashback, payable to the customer’s conveyancer on completion.