Your situation
You're buying a home. Here's what the insurance part looks like.
Your lender needs proof of insurance before closing. Here is what that involves, what the coverage choices actually mean, and how to handle it without slowing the closing.
No obligation. Starting a review does not change or bind any coverage.
What's going on
You are under contract, and somewhere in the paperwork your lender has asked for proof of homeowners insurance before closing. You may never have bought a policy before, and the closing date is not moving.
Why it matters
The policy you put in place at closing is the one that responds if something happens in your first year. How the dwelling is valued, what your deductibles are, and which perils are excluded are all decisions made at this point — usually quickly, and often without anyone explaining them. A short conversation first is worth it.
Things worth considering
Points we would talk through with you. Which of them apply depends on your situation, and what you do about them is your decision.
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How the dwelling is valued
Replacement cost and actual cash value settle claims differently. Which one applies to the dwelling, and which applies to the roof, can differ within the same policy.
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Your deductible, including separate wind and hail deductibles
In Missouri it is common for wind and hail to carry their own deductible, sometimes calculated as a percentage of the dwelling limit rather than a flat dollar amount. On a $350,000 dwelling limit, a 1% deductible is $3,500.
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Personal property, and the sub-limits inside it
Personal property limits are often set as a percentage of the dwelling limit. Jewellery, firearms, tools and collectibles frequently carry their own lower sub-limits, which is worth knowing before a claim rather than after.
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Liability limits
Your liability limit is a choice, not a fixed feature of the policy. If you carry auto insurance too, it is worth looking at both together.
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What a standard policy does not include
Flood and earthquake are generally excluded from a standard homeowners policy and are written separately. Flood is the one that catches people out locally: most flood claims in any given year come from outside the high-risk zones where lenders require it.
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Timing
Lenders typically want the policy bound and proof delivered before closing. Starting a week or two out leaves room to compare options rather than accept the first one available.
Information on this website is general in nature and is not a complete description of any insurance policy or every coverage option that may be available. Coverage availability, terms, conditions, limits and exclusions vary by insurer, policy and individual circumstances. The issued insurance policy and applicable endorsements control coverage. Beacon Point Insurance Group may provide information regarding available insurance options and discuss coverage considerations based on information you provide, but customers are responsible for selecting the carrier, coverages, limits and deductibles they wish to purchase. No insurance coverage is bound, changed, or canceled through this website unless confirmed by Beacon Point Insurance Group or the applicable insurer.
How this tends to come up
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A first-time buyer on a three-week close
Getting the declarations page to the lender on time is the immediate job. Understanding the wind and hail deductible before signing is the part that matters twelve months later, when a spring storm comes through.
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Moving up from a starter home
A larger home usually means a different dwelling limit, and often a different liability conversation — particularly if a pool, a trampoline or a detached structure comes with it.
We Learn. We Compare. We Explain. You Decide.
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We Learn
We ask questions about your situation and the insurance you currently carry.
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We Compare
Based on the information you provide, we can obtain and compare available options from the insurance companies we represent.
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We Explain
We help you understand important differences in coverage, limits, deductibles, policy terms, and price.
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You Decide
You select the company, coverages, limits, deductibles, and options you want to purchase.
What working with us is like
The part people tend to mention is that someone explained it and then let them decide.
Let's find the options that work for you.
No obligation. Starting a review does not change or bind any coverage.