The feeling of finding your very first home is unmatched. While the “hard part” may be over, your home journey has just begun. As you move toward the closing table, it’s important to know how to protect your newest, biggest asset. While most buyers think of insurance as just another "closing cost" box to tick, not all policies are created equal. To help avoid a "claims nightmare" six months down the road, here are three key coverages you should discuss with your agent.

1. Dwelling Coverage (Coverage A): It’s Not Just a Number

Dwelling coverage is the foundation of the policy – literally. It’s what pays to rebuild the structure if the worst happens.

A common trap for new buyers is relying on “Additional Replacement Cost Coverage” to bridge the gap of an underinsured home. Pro-tip: That "cushion" is meant to be a safety net for unexpected inflation or surges in labor costs, not a primary source of coverage.

• A good rule of thumb is to start coverage at roughly $250 per square foot, depending on the specific characteristics and finishes of the home.
• Ensuring the base amount is accurate protects them from out-of-pocket disasters if construction costs spike.

2. Liability Coverage: Protection in a Litigious World

Liability is the "lawsuit insurance" part of the policy. It protects you if someone is injured on your property, or if you (or your pets!) cause bodily injury to others. We live in an increasingly litigious society, and a "standard" $100,000 limit often isn't enough to cover legal fees and medical bills in a serious claim.

• We suggest a MINIMUM of $300,000, though $500,000 or $1,000,000 is far more secure if the carrier offers it.
• Buyers should remember that this coverage often extends to their furry family members too!

3. Hidden Water Damage: The "Invisible" Endorsement

This is a game-changer. Standard policies often cover a "sudden and accidental" pipe burst, but they frequently exclude slow leaks. If a leak is hidden behind a wall for months before being discovered, many carriers will deny the claim, labeling it a "maintenance issue."

• The Solution: Look for a Hidden Water Damage Endorsement.
• Many carriers now offer $20,000 to $50,000 in specific coverage for these types of hidden leaks. Without this, you could be staring at a massive restoration bill with zero help from your insurance.

At our agency, we pride ourselves on being more than just a quote—we are educators. Our goal is to ensure you are covered for as many "what-ifs" as possible so you can enjoy your new home with total peace of mind. Contact us today if you have further questions or need guidance on coverages!