I am supposed to close on a house in 4 days? But?

You don't get a policy until the home is yours. That said if you're getting a mortgage notify your lender. Even if you have loan approval it probably be canceled. A lender will not close if the home is not insured. If you don't close your deposit may be at risk if you previously received loan approval and clear to close. You need to talk to your agent and get a written closing extension until the issue can be resolved.

If you fail to deliver the money at the closing, or the sellers refuse to extend it, then you automatically forfeit your deposit. It doesn't matter WHY you can't pay. As long as the sellers did not fraudulently mislead you into signing the deal, with something you couldn't have discovered by your own inspections, then you're still on the hook.

how did you write the offer/contract? is it subject to the issuance of insurance at a price less than XXX?

implicitly, if you will have a mortgage, the deal is subject to issuance of insurance, BUT the mortgage company's affiliate will issue insurance -- AND it will be very expensive. that means YOU need to scrounge like crazy to get another insurer and at a reasonable price.

if you wrote the offer contingent on insurance from your fav company or insurance at cost less than XXX, you're off the hook.

if you didn't do that -- you're still obligated to complete the deal.