How to Buy Homeowners Insurance: A First-Time Buyer’s Guide

What should first-time homebuyers know about purchasing homeowners' insurance?

Homeowners insurance is essential for protecting your investment—but for first-time buyers, navigating policies, premiums, and providers can feel overwhelming. Here’s a simple guide to help you understand what to look for, how to compare quotes, and how to avoid common pitfalls.

Why Homeowners Insurance Matters

If you’re financing your home, your lender will likely require homeowners' insurance before closing. But even if it weren’t mandatory, this coverage is critical. It protects your home, your belongings, and your finances if something goes wrong—like a fire, storm damage, or theft.

Here’s what a standard policy typically covers:

• Dwelling coverage: Repairs to the physical structure of your home

• Personal property: Replacement costs for damaged or stolen items

• Liability protection: Legal costs if someone is injured on your property

• Additional living expenses: Temporary housing if your home is uninhabitable

When to Start Shopping for Insurance

Start shopping for homeowners' insurance shortly after your offer is accepted. You’ll need proof of coverage before closing, and comparing quotes early gives you time to make informed decisions without rushing.

How to Compare Policies and Providers

When you request quotes, make sure you’re comparing similar coverage amounts and deductible levels. Here are some things to look at:

• Coverage limits: Does the policy offer enough to rebuild your home?

• Deductible: What amount will you pay out-of-pocket before coverage kicks in?

• Replacement cost vs. actual cash value: Will damaged items be replaced at full cost, or depreciated value?

• Exclusions: Are certain risks (like floods or earthquakes) not covered?

Pro tip: Ask each provider for a sample policy. It’s a great way to spot the fine print.

Bundling and Discounts

Many insurance companies offer multi-policy discounts if you bundle your home and auto insurance. You might also get lower rates if you:

• Install a security system

• Choose a higher deductible

• Have good credit

• Go claim-free for a certain number of years

Ask about all available discounts—they can add up quickly.

Common Mistakes to Avoid

• Underinsuring your home: Base your dwelling coverage on replacement cost, not market value.

• Ignoring flood coverage: Standard policies don’t include flood insurance—you may need to purchase it separately, especially if you’re in a flood-prone area.

• Choosing the lowest premium: Cheap doesn’t always mean better. Review what’s included (and what’s not).

How to Finalize Your Policy

Once you choose a provider, let your mortgage lender know. The insurer will send proof of coverage directly to your lender. You’ll typically pay the first year’s premium upfront as part of your closing costs.

Be sure to:

• Save your declarations page

• Add your policy to your digital files

• Set a reminder for annual reviews or renewals

Final Thoughts for First-Time Buyers

Buying your first home is a big milestone—and homeowners' insurance is one of the smartest ways to protect it. With a little research and the right questions, you can secure coverage that fits your needs and gives you peace of mind.

Ready to Make Your Next Move?

If you're navigating the home buying process and want guidance from someone who knows the Norman and OKC metro market inside and out, let's talk. I’m Daniella Miller, a local real estate agent helping buyers like you make confident, well-informed decisions.

Schedule a call today to take the next step toward homeownership with clarity and confidence.