First Time Home Buyer Insurance Checklist for Virginia

The short answer

You need homeowners insurance before you can close on your home. Your mortgage lender will require proof of this coverage to finalize your loan. You should start looking for a policy as soon as you have a signed contract on your house.

When should I start looking for homeowners insurance?

Do not wait until the last week before closing to find a policy. Start shopping as soon as you have a signed sales contract. This gives you time to compare options and find the right fit for your new home. Your lender needs to see proof of insurance before the closing date. This document is often called a binder or evidence of insurance.

How much dwelling coverage do I need?

Dwelling coverage pays to repair or rebuild your home if it gets damaged. Many people make the mistake of choosing an amount based on their sale price. You should choose an amount based on what it would cost to rebuild your home from scratch. Talk to your agent about the current cost of materials and labor in your area. If you are not sure about these costs, check with a licensed agent at Trinity Solutions Insurance Agency.

What factors affect my home insurance quote?

Insurance companies look at many details about your property. The age and condition of your home play a big role. Make sure to share details about your roof age, electrical system, and plumbing. A home inspection report is a great source for this information. The report can tell you if your home needs updates that might affect your rates.

How can I learn about past claims on the house?

Ask the seller if they have made any claims on the home in the past. Insurance carriers can also see a report on the claim history of a property. Knowing about past issues can help you understand the risks. It might also help you decide if you need extra coverage for specific problems.

Do I need flood insurance in Virginia?

Standard home policies do not cover damage from floods. You must buy a separate flood insurance policy for that protection. Your lender will require you to get flood insurance if the home is in a high risk flood zone. It is smart to check the flood zone status of any house before you buy it.

What is the first time home buyer insurance checklist?

1. Get a copy of your home inspection report to share with your agent.
2. Ask the seller about any past claims or property damage.
3. Verify your home's flood zone status.
4. Calculate the cost to rebuild your home instead of using the sale price.
5. Ask your agent about water backup coverage to protect your basement and pipes.
6. Compare quotes for home and auto bundles to see if you can save money.

How do I pay for my insurance?

Many lenders help you pay your insurance bills through an escrow account. This means your insurance premium is added to your monthly mortgage payment. Your lender collects this money and pays the insurance company for you. Make sure you understand how your mortgage payment is set up.

Common questions

Does my sale price determine my coverage amount? No, you should base your coverage on the cost to rebuild the home. Can I bundle my policies? Yes, bundling your auto and home insurance may save you money. Is water backup included? It is not always included, so please ask your agent to add this coverage to your policy. Who needs to see proof of insurance? Your mortgage lender requires proof, which is known as a binder or evidence of insurance.

What to do next

We are here to help you get started with your new home protection. You can learn more about home insurance on our website. You might also want to look into an auto and home bundle to see if you qualify for savings. When you are ready for a custom plan, please request a personal quote.