Just Bought a Home? Here Is What You Need.
Your lender requires homeowners insurance before closing. But the minimum they require is not always the coverage you actually need. Here is the full picture.
What Your Lender Requires
Dwelling Coverage
Must equal at least the loan amount or the replacement cost of the home — whichever is higher. Replacement cost is what it would cost to rebuild, not the market value. These are often very different numbers.
Liability Coverage
Most lenders require at least $100,000 in personal liability. We typically recommend $300,000 or more, especially if you have a pool, trampoline, or dog.
Certificate of Insurance
Your lender will require a certificate of insurance (also called a binder) before closing. We can provide this within 24 hours of binding your policy.
What Most New Homeowners Miss
Flood Insurance
Standard homeowners policies do not cover flooding. If your home is in a FEMA flood zone, your lender will require flood insurance. Even outside a flood zone, flooding can happen — and a separate flood policy is often $500-$1,500/year.
Earthquake Coverage
Standard policies exclude earthquakes. In Colorado and Arizona, earthquake risk is low but not zero. In Minnesota, it is minimal. Worth a conversation if you are near a fault zone.
Umbrella Policy
A $1 million umbrella policy costs $150-$300/year and extends your liability coverage beyond your homeowners and auto limits. If you have a pool, a dog, or significant assets, it is worth serious consideration.
Jewelry and Valuables
Standard homeowners policies cap jewelry coverage at $1,000-$2,500. An engagement ring, wedding band, or heirloom jewelry worth more than that needs a scheduled personal property endorsement.
Replacement Cost vs. Actual Cash Value
Replacement cost coverage pays what it costs to replace your belongings new. Actual cash value pays what they are worth today (depreciated). The difference on a 5-year-old TV is significant. Always choose replacement cost.
New Homeowner Insurance Checklist
Common Questions
Drop your name and email. We will reach out when it matters — no spam, no pressure.
Closing Soon? We Can Bind Coverage in 24 Hours.
We work with buyers across Colorado, Minnesota, and Arizona. Call (719) 591-2036 or get a quote online.