Insurance Checklist for New Homeowners: Every Policy You Need

Buying a home is likely the biggest financial commitment you'll ever make — and protecting that investment starts with having the right insurance in place. Most first-time homeowners know they need a homeowners policy (their lender requires it), but many overlook other coverages that are equally important. This checklist covers every policy you should consider before, during, and after closing on your new home.

Before Closing: Insurance You Need on Day One

1. Homeowners Insurance (HO-3 Policy)

This is non-negotiable. Your mortgage lender will require proof of homeowners insurance before closing. A standard HO-3 policy covers:

• Dwelling coverage: Repairs or rebuilds your home's structure after covered perils (fire, wind, hail, lightning, etc.)
• Personal property coverage: Replaces your belongings if damaged or stolen
• Liability coverage: Protects you if someone is injured on your property and sues
• Additional living expenses (ALE): Covers hotel, meals, and temporary housing if your home becomes uninhabitable

Key decisions to make:

• Set your dwelling coverage at full replacement cost — not market value or purchase price
• Choose replacement cost (not actual cash value) for personal property coverage
• Carry at least $300,000 in liability coverage; $500,000 is better
• Select a deductible you can comfortably afford ($1,000–$2,500 is typical)

2. Title Insurance

Your lender will require a lender's title policy, but you should also purchase an owner's title policy. This protects you against claims or disputes over the ownership of your property — things like undisclosed liens, forged documents, or boundary disputes. It's a one-time premium paid at closing, typically $1,000–$3,000 depending on the home's value.

After Closing: Policies to Add or Update

3. Flood Insurance

Standard homeowners insurance does not cover flood damage. If your home is in a FEMA-designated flood zone, your lender will require a separate flood policy through the National Flood Insurance Program (NFIP) or a private flood insurer.

But even if you're not in a high-risk zone, consider flood insurance anyway. Over 25% of flood claims come from properties outside designated flood zones. Policies start at $400–$700/year for low-risk areas.

4. Umbrella Insurance

Now that you have a home — and the equity that comes with it — you have assets worth protecting beyond your homeowners liability limit. An umbrella policy adds $1 million or more in excess liability coverage for about $150–$300/year. It covers you for lawsuits that exceed your homeowners or auto policy limits.

5. Update Your Auto Insurance

Your new address affects your auto insurance rates. Urban vs. suburban, crime rates, distance to work, and even which state you're in can change your premium. Notify your auto insurer of your address change immediately — failing to do so could void coverage.

Also, if you're now bundling home and auto with the same carrier, you'll likely qualify for a multi-policy discount of 5–15%.

Specialty Coverages to Consider

6. Sewer and Water Backup Coverage

Most homeowners policies exclude damage from sewer backups and sump pump failures. If your home has a basement, this endorsement is essential — typically $50–$100/year for $10,000–$25,000 in coverage.

7. Earthquake Insurance

If you're in a seismically active area (California, Pacific Northwest, parts of the Midwest), earthquake coverage is a separate policy. Standard homeowners insurance excludes earthquake damage entirely.

8. Scheduled Personal Property

If you own high-value items — jewelry, art, musical instruments, collectibles — check your policy's sub-limits. You may need to schedule these items individually for full coverage. See your policy declarations page for category limits.

9. Home Warranty (Not Insurance, but Worth Mentioning)

A home warranty covers repair and replacement of major systems and appliances (HVAC, plumbing, electrical, kitchen appliances) due to normal wear and tear. Insurance covers sudden, accidental damage; warranties cover breakdowns from age and use. Many sellers offer a one-year home warranty as part of the sale.

Your New Homeowner Insurance Checklist

Use this as your master list:

• [ ] Homeowners insurance (HO-3) with replacement cost coverage
• [ ] Dwelling coverage set to full replacement cost
• [ ] Personal property coverage at replacement cost (not ACV)
• [ ] Liability coverage of at least $300,000–$500,000
• [ ] Owner's title insurance
• [ ] Flood insurance (required or optional based on location)
• [ ] Umbrella insurance ($1M minimum)
• [ ] Auto insurance updated with new address
• [ ] Home and auto bundled for multi-policy discount
• [ ] Sewer/water backup endorsement
• [ ] Earthquake insurance (if applicable)
• [ ] Scheduled personal property for high-value items
• [ ] Home inventory completed (photos + receipts)
• [ ] Emergency fund of at least one deductible amount

How Truvo Helps New Homeowners

Closing on a home is overwhelming enough without trying to navigate insurance on your own. Truvo helps first-time homeowners set up comprehensive coverage across all the policies on this list — homeowners, auto, umbrella, flood, and specialty endorsements. Because we compare carriers, you get the right coverage at a competitive price, and we handle the complexity so you can focus on moving in.

Start Your Homeownership on the Right Foundation

The right insurance portfolio protects not just your home, but your finances, your belongings, and your liability exposure. Don't wait until something goes wrong to discover a gap. Get a quote from Truvo and check every box on this list before you turn the key.