3 Things Every Homebuyer Needs to Know About Their Insurance Quote
Buying a home is exciting, but the insurance piece often feels confusing and overwhelming — especially for first-time buyers. As a real estate professional, you can add tremendous value by helping clients understand the basics of their insurance quotes. Here are the three most important things to explain:
1. Dwelling Coverage = Rebuild Cost, Not Market Value
One of the biggest misconceptions buyers have is around dwelling coverage. This number doesn’t represent what they paid for the home — it’s the estimated cost to rebuild the house from the ground up if it were destroyed.
Why the difference? Market value includes land and location. Dwelling coverage is based on the cost of labor, materials, and construction standards in today’s economy. Helping clients understand this distinction avoids confusion and makes the quote feel more accurate.
2. Deductibles Control the Premium
Another key concept is the deductible — the amount a homeowner pays out of pocket before insurance kicks in on a claim.
It’s important to remind buyers:
Higher deductible = lower monthly premium.
Lower deductible = higher monthly premium.
Encourage them to choose a number they can comfortably afford in an emergency. It’s all about striking the right balance between affordability now and protection later.
3. The “Hidden” Costs of Protection
A standard home insurance policy doesn’t cover everything. This is where surprises often come in.
For example:
Flood and earthquake damage usually require separate policies.
Things like sewer or drain backups may require endorsements or add-ons.
Agents who help clients anticipate these gaps look like heroes when those questions inevitably come up.
Why This Matters for Your Transactions
By walking buyers through these three essentials, you’ll not only reduce confusion but also help avoid last-minute snags in the closing process. Insurance can make or break a deal — especially in today’s market where insurability is under more scrutiny than ever.
That’s where partnering with the right insurance professional makes a difference.
As an independent broker, we can shop across multiple carriers to find the right fit for your clients. We simplify the process, answer the tricky questions, and make sure coverage is in place so your closing goes smoothly.
👉 Let’s connect — together, we can make the insurance side of buying a home a breeze.
