How to Buy Homeowners Insurance For The First Time


Before finalizing the purchase of your dream house, most lenders will request you to get a home insurance policy. Without a doubt, this might look easy, but certain factors are needed to be considered when choosing homeowners insurance for the first time. Coverage offered by home insurance includes the same, but the decision of choosing a suitable home insurance company rest upon you as many lenders might provide you with varieties of insurance referrals. Find out more about how to buy homeowners insurance for the first time.

When it comes to purchasing homeowners insurance for the first time, your responsibility is to ensure that you have the right coverage adequate for protecting yourself, your residence, detached structures, and personal belongings. However, first-time homebuyers might find it daunting when selecting the most suitable homeowners insurance policy, especially with certain factors to consider like where you live and others.

How to Buy Homeowners Insurance For The First Time

In most states, home insurance is important and also critical as they help to provide coverage for financial loss due to unexpected occurrence like fire outbreak, and others. With a homeowners insurance policy, you can get cover from any destruction and damage to your home interior or exterior, theft of possessions, and any other harm. Therefore, if you are asking the question is homeowners insurance a good investment, the answer is Yes.

Is Home Insurance Required to Buy a Home?

Probably, you might be wondering, is home insurance necessary to purchase a house, the answer is yes. According to reports, it’s essential that you have a homeowners insurance policy before purchasing a home. This will prove to your lender that you have homeowners insurance which eventually gets you the keys to your home and also funds your home loan.

If you have made a full payment yet, your lender holds a lien on your property, therefore it’s wise to have home insurance in other to ensure that the property is insured when you continue making the down payment for your mortgage.

Note, if you’re purchasing your new home with a case or an unsecured line of credit, providing home insurance is not essential before closing the deal. Not in all states is it essential to have home insurance unlike car insurance but having it helps to protect the equity in your home.

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Cost of Homeowners Insurance for First-Time Homebuyers

According to the latest data from Bankrate, the average cost of homeowners insurance is about $1,383 per year, and dwelling coverage cost $250,000. Moreover, the cost of your home insurance policy is affected by certain factors that include your personal and home ratings. Here are the following the determine how much cost it’s for first-time home buyer insurance:


Location is one of the considered factors when it comes to the cost of first-time home buyer insurance. The average policy cost in Oklahoma is $3,593 per year and in Hawaii cost $378 annually. Therefore, you can see that your location such as city, town, and zip code plays a role in the cost, especially your premium.

Home Value

A home that cost $200,000 will find an affordable home insurance rate that a home that cost $600,000. This is due to the value of the home which is much lower. Generally, the more expensive your home is, the most expensive the insurance rate will be.


Deductible means the amount you pay from your pocket if you file a claim on your policy. With a very high deductible, be rest assured that your premium payment is likely to be lower.

In addition, other factors also include claim history, coverage types, and personal information. The best advice given to a first-time home buyer insurance to determine the cost is to get free quotes from various insurance providers.

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How to Buy Homeowners Insurance for the First Time

Initially, during the process of your mortgage approval, your loan specialist will provide you with the time or date to buy homeowners insurance. But you don’t need to wait for that as you can start shopping for a policy immediately after you solidified your new address.

Just like I mentioned earlier, the best way to find affordable home insurance costs for your new home is to get quotes from several insurance providers. Here are some of the things to watch out for in a home insurance policy

Limits on Your Personal Property and Liability Coverage

You need to check the limits on your personal property and liability coverage in your policy. This includes your personal belongings like clothing, furniture, electronics, and others. Check to see that you are satisfied with the limitation and it covers everything you own.

Be aware of exclusions

These vary on the method used in shopping for home insurance such as “where”. They might be certain things that your policy will not cover or not included in a standard policy. For instance, earthquakes, landslides, mudflows, and flooding.

Understand your deductibles

There are very essential for all first-time home buyer insurance to understand the deductible for property damage. The deductible serves as the payment of the claim you’re entitled to, therefore, make sure your deductible amount is enough for your budget to handle.

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What is the best home insurance company for first-time buyers?

The truth is that there are no best home insurance companies for first-time buyers. But that does not mean you to go for any insurance company you see that offers home insurance. It’s reasonable to always research some reputable insurance companies and compare their policy to find the one that suits you.

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Do I have to buy insurance for my first home?

No, home insurance is not a legal requirement for first-time buyers, unlike car insurance which is mandatory to have. But with a homeowner insurance policy, you can purchase your home with a mortgage loan or any other form of a loan.

Why do mortgage companies require insurance?

All mortgage companies or lenders often request a homeowners insurance policy because they want to protect the investments they made in your home. Another reason is that they want assurance that if the home is damaged, you have enough finance to rebuild or repair it.


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