Why Every Buyer Needs Home Insurance

By DeVonna Meyer

DeVonna has spent over 43 years building lifelong relationships in South County and has sold hundreds of homes from San Jose, Morgan Hill, Gilroy, and Hollister Cities.

If you’re planning on buying a home, home insurance isn’t optional. Most lenders require it before closing, and for good reason. It protects your house, your belongings, and your finances. Today, I’ll walk you through exactly what home insurance covers, why rates are rising, and how to make sure you’re fully protected before you close.

Why is home insurance required? Home insurance protects the lender’s investment—and yours. If your home is damaged by fire, storms, or other disasters, the insurance helps pay for repairs. Without it, you’d have to pay those costs yourself. That could mean thousands of dollars out of pocket for structural damage, not to mention the cost of replacing your belongings.

What does a typical policy cover? A standard home insurance policy isn’t just about protecting your property itself. There are three major protections it provides:

• Personal property: Covers stolen or damaged items like your furniture, appliances, clothing, and electronics.
• Liability coverage: Pays medical bills and legal expenses if someone is injured on your property.
• Loss of use: Covers hotel stays or rental costs if you can’t live in your home due to damage.

For example, if a fire destroys your kitchen and living room, your policy can help pay to repair the damage, replace lost items, and cover temporary housing while your home is being rebuilt.

Why are premiums going up? Home insurance costs have risen due to more extreme weather events and higher repair costs for labor and materials. Some insurers are even pulling out of high-risk areas, making it harder for buyers to find affordable coverage. That’s why comparing policies is more important than ever.

How much should you budget? Your first home insurance payment is usually included in your closing costs. After that, it becomes a monthly or annual expense, typically paid through your mortgage escrow account. But every policy is different. Be sure to compare deductibles, coverage limits, and exclusions so you’re not caught off guard later.

Home insurance isn’t just a closing requirement. It’s protection for everything you’ve worked for. If you’re ready to buy and want to make sure you’re protected, feel free to call or text me at 408-547-4362 or email me at devonna.meyer@exprealty.com. I’ll help you review your options and make sure you have the right coverage before closing.