Homeowners insurance protects your biggest investment, and your lender requires proof of coverage before closing. The good news is that it is a quick, straightforward step when you start early.
What a standard policy covers
- The home itself (dwelling coverage), rebuilt if needed after a covered loss
- Other structures like a garage or fence
- Your belongings
- Liability if someone is injured on your property
- Extra living costs if a covered event makes the home unlivable for a time
Extras worth asking about
Some coverage is not part of a standard policy and is bought separately, such as earthquake or flood coverage. Ask your insurance agent which add-ons make sense for the home you are considering, and decide what fits your comfort level and budget.
How to get a great policy
1. Start once you have an accepted offer, or even earlier for your price range. 2. Ask an independent insurance agent to compare several companies at once. 3. Give each company the same coverage amounts and deductible so you can compare fairly. 4. Send proof of coverage to your lender and escrow officer by the date they request.
Budgeting
The payment calculator includes an insurance estimate you can adjust as soon as you have a real quote.
Quotes depend on the home and the carrier. An independent insurance agent can give you exact numbers.
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General information only, not legal, tax or financial advice. Programs, rules and limits change, so confirm details with your lender, escrow officer, attorney or tax professional.