Buying your first home is exciting, and the insurance paperwork is the part nobody explains. Here is what actually matters before you sign.
Dwelling coverage is not the purchase price
Your dwelling limit should reflect what it costs to rebuild the house, not what you paid for it. Land value is included in the purchase price but never in a rebuild. In most Texas markets the rebuild figure lands well below the sale price — occasionally above it, when construction costs spike.
Replacement cost vs. actual cash value
Actual cash value pays out the depreciated value of what was damaged. A ten-year-old roof gets you a ten-year-old roof’s worth of money. Replacement cost pays what it takes to put a new one on. The premium difference is usually small; the claim difference can be tens of thousands of dollars.
Personal property and the sub-limits nobody reads
Standard policies cap certain categories: jewelry, firearms, cash, business equipment kept at home. If you own anything meaningful in those categories, schedule it separately.
Liability is the cheapest limit you will ever raise
Going from $300,000 to $500,000 of personal liability typically costs a few dollars a month. An umbrella policy on top adds $1M or more for around the price of a streaming subscription.
Before you close
Get a quote early — flood zone, roof age, and prior claims on the property all affect availability, and finding out at closing is a bad time. We compare 20+ carriers so you see the real spread before you commit.
