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First-Time Home Buyer Insurance Checklist

Lenders require homeowners insurance, but the policy they accept is rarely the one you should keep.

Before closing

  • Get 3 quotes — bundle with auto for 10–25% savings
  • Calculate replacement cost (not market value) for the dwelling
  • Inspect the roof age — affects rates and insurability
  • Ask about flood zone — get a separate NFIP or private flood quote if needed
  • Check the CLUE report on the property (claims history)

Choosing coverage

  • Dwelling: full replacement cost with extended replacement coverage
  • Personal property: replacement cost (not ACV)
  • Liability: $300k minimum, $500k preferred
  • Loss of use: at least 20% of dwelling
  • Water/sewer backup endorsement
  • Service line coverage
  • Ordinance and law coverage (pays for code upgrades)

Things lenders won't tell you

  • Earthquake is excluded — separate policy needed in CA, OR, WA, MO
  • Mold is sub-limited to $5–10k typically
  • Sinkhole, mine subsidence are excluded outside specific states
  • Trampolines, pools, certain dog breeds can void liability

After closing

  • Photograph and inventory everything within 30 days
  • Save the inspection report — it's a baseline for future claims
  • Set a calendar reminder to shop policies annually
  • Review umbrella coverage now that you have a major asset

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