Talk To An Agent

(310) 477-5000
New Home Purchase

New Home Purchase

February 09, 2022

The biggest financial investment you will probably make is the purchase of a home.  There is a lot to consider when you are doing this and one of the most important items might just be the insurance you will be required to have in place to close your escrow.  Do not put this off to the last minute since so many factors go into buying Homeowners insurance. Location, location, location means more than the address.  You will want to make sure insurance coverage is available in your area.

Some areas do not qualify for a standard Homeowners insurance policy.  They are at greater risk of loss due to possible flood or the home is in an area with a higher exposure to loss caused by fire. Your lender will advise you of their insurance requirements to satisfy their loan.  The lender will also advise you as to how much coverage you will need.  If possible try to get their requirements well ahead of the close of your escrow and then enlist the help of your insurance agent to find the best policy for you.

 The standard Homeowners insurance policy has two components.  The first section of the policy referred to as the Property Section covers the physical damage to the interior and exterior of the structure.  It also includes coverage for your personal possessions and any appurtenant structures on the property such as a detached garage or swimming pool.

You want to make sure you are buying enough insurance to cover the cost of rebuilding your home not the market value of it.   Remember you are insuring the home not the land it is situated on.

Discuss options with your agent such as Replacement Cost, Guaranteed Replacement Cost and

deductibles that will apply in the event of a loss.  At that time look into any discounts that may be realized if you have your Homeowners and Automobile insurance with the same company.


The second component of the policy is referred to as the Liability Section.  This coverage provides protection for accidents you are liable for that occur inside or outside your home and result in bodily injury or property damage to a third party for which you are liable.

Make sure you understand what you are buying and how your coverage will apply in the event of a loss.