Buying your first home is one of life’s most exciting (and overwhelming) milestones. You’ve spent months hunting for the perfect place, navigating mortgage approvals, and dreaming about paint colours and furniture placement. But there’s one detail that often flies under the radar for first-time homebuyers – and that’s insurance.
While most buyers know they need insurance to satisfy mortgage lenders, few truly understand what kind of coverage they’re buying, what it protects (or doesn’t), and how it fits into their long-term financial plan. The truth is, home insurance can be more nuanced than people expect and getting it right from the start can save you headaches, surprises, and even money down the road.
If you’re about to sign on the dotted line, here are some first-time homebuyer insurance tips nobody talks about, but definitely should.
Not All Policies Are Created Equal
When you’re securing home insurance for the first time, it’s tempting to go with the cheapest quote and call it a day. But not all policies are built the same, and that low price might come with significant gaps in coverage.
Many first-time buyers assume that their policy will cover everything, from fire to flooding to appliance repairs. In reality, most standard home insurance policies have specific limits and exclusions. For instance, overland water (flood) coverage is often optional, and damage from sewer backup usually requires an added endorsement.
Working with a broker can help ensure you’re not underinsuring yourself or misunderstanding your policy. It’s not just about price. It’s about peace of mind.
Replacement Cost Isn’t the Same as Market Value
Another common misconception? Thinking your insurance should match the price you paid for your home. In truth, your insurance should reflect the cost to rebuild your home – not its market value. These numbers are rarely the same.
Your home’s rebuild value factors in materials, labour, permits, and debris removal. Market value, on the other hand, includes land costs and local real estate demand. Insuring your home based solely on its market value could lead to overpaying for coverage, while underinsuring it based on the purchase price could leave you on the hook for big costs after a major loss.
Your Policy Doesn’t Just Protect Your House
Home insurance also includes liability protection. If someone gets hurt on your property or if you accidentally cause damage to someone else’s, your policy can step in to cover legal fees, medical expenses, or property repairs. This is especially important if you plan to host guests, own a dog, or have features like pools, trampolines, or wood-burning stoves that increase liability risk.
Also, don’t overlook coverage for your personal belongings. From furniture and electronics to clothing and jewelry, your contents are a major part of your policy—and knowing how much you own can help ensure you’re covered properly.
A Home Inspection Can Help Your Insurance Too
Most homebuyers know a home inspection is a smart move, but fewer realize that the information from the inspection can also help your insurance broker get you the best coverage.
Details like the age of your roof, plumbing, electrical, and heating systems all influence your risk level and, in turn, your premium. An older home with outdated systems may require additional coverage or result in a higher premium – but at least you’ll know upfront, rather than finding out after a claim.
Discounts Are Out There (But You Have to Ask)
First-time buyers are often so focused on getting insured that they don’t realize there are ways to save. Many insurers offer discounts for things like:
- Installing a monitored alarm system
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Bundling your home and auto insurance
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Paying annually instead of monthly
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Being claims-free
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Living near a fire hydrant or station
Your broker can help you identify which discounts you’re eligible for and make sure you’re not leaving money on the table.
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Homeownership is a big step and so is protecting your investment with the right insurance. As a first-time buyer, the process can feel overwhelming, but it doesn’t have to be. Understanding how home insurance works, what to look for in a policy, and what questions to ask can go a long way in making sure your coverage fits your life and your home.
If you’re in the process of buying your first home and need guidance on choosing the right insurance, our team at Duliban Insurance is here to help. We work with Canada’s top insurers to find coverage that’s not only affordable but tailored to you. Let’s make sure you start your homeownership journey protected, informed, and confident. Get in touch, today.
