A practical guide for first-time buyers navigating coverage for the first time
The homebuying process involves more steps than most people expect — and insurance is one that often gets pushed to the last minute. Here’s a practical look at when it fits in, what lenders require, and how to make the whole thing easier.
When Do You Need Insurance?
Most mortgage lenders — including HOMEROCK Mortgage — require proof of homeowner’s insurance before closing. That means you typically need a policy in place within a few days of your closing date. The earlier you start shopping, the better.
What Lenders Are Looking For?
Your lender wants to know the home can be rebuilt if it’s destroyed. That means your dwelling coverage needs to reflect the cost to rebuild — not just the purchase price or market value. These numbers can be very different.
Working with HOMEROCK Realty
When you’re working with a HOMEROCK Realty agent, they can flag insurance considerations early in the process — things like flood zone designations, older roof conditions, or renovations that might affect your premiums. It’s a built-in advantage of working within the HOMEROCK family.
What Your Policy Should Cover
At minimum, your policy should include: dwelling coverage (the structure), personal property coverage (your belongings), liability coverage (in case someone is injured on your property), and additional living expenses coverage (if you need to stay elsewhere during repairs).
One Last Thing
Once you close, don’t put the policy in a drawer and forget it. Schedule a review in six months or a year. By then you’ll have a better sense of what you’ve brought into the home and what might need to be added to your coverage.
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