Buying a Home? Here's What You Need to Know About Homeowners Insurance

Homeowners insurance is one of those things that comes up late in the home buying process, but it deserves your attention a lot earlier than most buyers realize. After 30+ years helping buyers across the Valley get to the closing table, I can tell you it's not something you want to figure out at the last minute.

Here's a rundown of what homeowners insurance actually does, and what to keep in mind as you shop for a policy.

What Homeowners Insurance Actually Covers

At its core, a homeowners policy protects a few different things:

Your property and belongings. This covers the physical structure of your home as well as your personal belongings inside it, in the event of damage from things like fire, wind, or theft.

Liability protection. If someone is injured on your property, liability coverage can help protect you from the costs that come with that.

Additional living expenses. If your home becomes temporarily unlivable due to a covered event, this portion of your policy can help cover the cost of staying somewhere else while repairs are made.

Why It's Not Optional If You're Financing

If you're getting a mortgage, your lender is going to require homeowners insurance before you close. It protects their investment in the property just as much as it protects yours, so this isn't a step you can skip or postpone.

A Few Things to Keep in Mind

Compare policies. Coverage and pricing can vary quite a bit between insurers, so it's worth getting a few quotes rather than going with the first one you find.

Check for exclusions. Every policy has things it doesn't cover. Here in Arizona, that often means looking closely at things like flood coverage or coverage for certain older systems in a home, so you know exactly what you're protected against.

Review your coverage regularly. Your needs can change over time, whether that's from home improvements, an increase in the value of your belongings, or changes in your local area. It's worth revisiting your policy every so often rather than setting it and forgetting it.

Stay Informed, Stay Protected

Homeowners insurance isn't the most exciting part of buying a home, but it's one of the most important pieces of protecting what is likely your biggest investment. If you have questions about what kind of coverage makes sense for your situation, or where to even start, I'm happy to point you in the right direction.

Give me a call at (602) 763-6363 if you'd like to talk it through, no pressure at all.

David Thomas, Realtor