Buying a new home? Here’s what to keep in mind to avoid costly surprises.
Check out our guide below!
Questions? Reach out to one of our knowledgeable insurance agents. We’re eager to set you up with the right coverage and rate!
New construction is exciting, you’re the first to live there, everything is brand new, and repairs are unlikely to be completed anytime soon. But that doesn’t mean you can skip or delay insurance plans. In fact, there are specific insurance steps every new homebuyer must take before closing.
Here’s what you need to know:
1. Your builder’s insurance doesn’t protect you
Most builders carry builder’s risk insurance, but this only protects their investment during construction. As soon as the home is complete, or in some cases even before closing, you may be expected to have your own homeowner’s insurance policy in place.
2. Your lender will require homeowners’ insurance before closing
Your mortgage lender will likely ask for proof of insurance before closing day. Be ready to provide a declarations page showing active coverage with appropriate limits.
3. Rates are usually lower for new homes, but only if you get the right quote
Insuring a brand-new home is typically cheaper than an older one. Why? Because new systems (roof, HVAC, plumbing) mean less risk. That said, every quote is different. Be sure to shop for coverage that reflects your upgrades, square footage, and local weather risks.
4. You still need protection from day one
Just because your home is new doesn’t mean it’s risk-free. Common first-year claims include:
- Water damage from washing machines or leaks
- Storm or wind damage
- Electrical system failures
- Theft of appliances or equipment before you move in
5. Talk to a local agent early
Working with a local agency like Cornerstone Insurance Agency LLC, means we understand new construction timelines, builder handoffs, and what your warranty does (or doesn’t) cover. We can help ensure seamless coverage from builder to buyer.