Jeni VanOrnum | Real Estate Insights & Education

Homeowners insurance is required by lenders and essential for protecting your investment. Here’s what first-time buyers need to understand.

What Does Homeowners Insurance Cover?

Standard HO-3 Policy Covers:

• Dwelling (structure)
• Other structures (garage, shed)
• Personal property
• Loss of use (temporary living expenses)
• Liability protection
• Medical payments to others

Common Perils Covered:

• Fire and smoke
• Wind and hail
• Lightning
• Theft
• Vandalism
• Water damage from burst pipes

What’s NOT Typically Covered:

• Flood damage (requires separate policy)
• Earthquake damage (requires separate policy)
• Normal wear and tear
• Intentional damage
• Sewer backup (without endorsement)

How Much Coverage Do You Need?

Dwelling Coverage: Should equal your home’s replacement cost (not market value). This covers rebuilding if destroyed.

Personal Property: Typically 50-70% of dwelling coverage. Take inventory and consider additional coverage for valuables.

Liability: Minimum $300,000 recommended, though $500,000 is better. This protects if someone is injured on your property.

Factors Affecting Your Premium

• Location (weather risks, crime rates)
• Home age and condition
• Coverage amounts
• Deductible chosen
• Credit score
• Claims history
• Safety features (alarm system, fire suppression)
• Distance to fire station

How to Save Money

• Shop around (get at least 3 quotes)
• Bundle with auto insurance
• Increase your deductible
• Install security/safety systems
• Maintain good credit
• Ask about available discounts

When to Review Your Policy

Annually, and after:

• Major renovations
• Significant purchases
• Property value changes

Choosing a Provider

Look for:

• Strong financial ratings
• Good customer service reviews
• Local agents
• Fair claims process

I’ll Connect You

I work with insurance agents who specialize in homeowners policies and can help you get competitive rates.