New Homeowner Insurance Guide

Congratulations on your new home! Learn everything you need to know about protecting your investment with the right insurance coverage.

Essential coverage explained

Common mistakes to avoid

Complete coverage checklist

Quick Tips for New Homeowners

• Get coverage before closing on your home

• Understand your mortgage requirements

• Document your belongings

• Consider additional coverage needs

• Review policy details carefully

• Ask about available discounts

First Steps for New Homeowners

Follow these essential steps to ensure your new home is properly protected

Home Inventory

Create a detailed inventory of your belongings before moving in.

Take photos or video of all rooms
List valuable items with serial numbers
Keep receipts for major purchases
Store inventory in a safe place

Document Collection

Gather important documents needed for your insurance policy.

Home inspection report
Closing documents
Security system certificates
Previous claims history

Coverage Calculation

Determine the right amount of coverage for your new home.

Calculate rebuilding costs
Assess personal property value
Consider liability needs
Factor in additional structures

Property Documentation

Document the condition of your home and safety features.

Photograph existing damage
Document safety features
Record home improvements
Note construction materials

Policy Review

Carefully review your policy options and coverage limits.

Understand deductibles
Review coverage exclusions
Check for endorsements
Verify coverage limits

Claims Preparation

Set up everything you need for potential future claims.

Save agent contact info
Create claims procedure file
Download insurance app
Store policy documents safely

Common Insurance Mistakes to Avoid

Learn from others' experiences and avoid these costly insurance mistakes

High Risk

Underestimating Coverage Needs

Many new homeowners only insure for the purchase price, not the rebuilding cost.

Potential Consequences:

Insufficient funds to rebuild
Out-of-pocket expenses
Partial repairs only

Solution:

Calculate accurate rebuilding costs including labor and materials in your area.

High Risk

Ignoring Additional Coverage Options

Skipping important endorsements that could protect against specific risks.

Potential Consequences:

No coverage for water damage
Limited protection for valuables
Gaps in coverage

Solution:

Review all endorsement options and add coverage based on your specific needs.

Medium Risk

Choosing Too High Deductible

Selecting a very high deductible just to lower premium payments.

Potential Consequences:

Difficult to pay in emergency
Delayed repairs
Financial strain

Solution:

Balance deductible with your emergency fund capabilities.

Medium Risk

Not Documenting Possessions

Failing to maintain an updated inventory of personal belongings.

Potential Consequences:

Difficulty proving ownership
Delayed claims process
Lower claim payments

Solution:

Create and regularly update a home inventory with photos and receipts.

High Risk

Misunderstanding Exclusions

Not reading policy exclusions and assuming all damages are covered.

Potential Consequences:

Unexpected denials
Coverage gaps
Financial surprises

Solution:

Carefully review policy exclusions and add coverage where needed.

Medium Risk

Waiting Too Long to Purchase

Delaying insurance purchase until the last minute before closing.

Potential Consequences:

Rushed decisions
Missed discounts
Inadequate coverage

Solution:

Bundle Policies

recommended

Combine with auto insurance

Ready to get started with your coverage?

Our agents will help you check off every item on this list.

Resources & References

Our information is sourced from trusted industry experts and government organizations.

Government

Illinois Department of Insurance

Official state resource for insurance regulations and consumer information

Data

FEMA Disaster Declarations

Historical data on Illinois natural disasters and emergency declarations

Research

Insurance Information Institute

Research and statistics on home insurance trends and claims data

Industry

National Association of Insurance Commissioners

Insurance company ratings and consumer protection resources

Ratings

AM Best Insurance Ratings

Financial strength ratings for insurance companies

Weather

National Weather Service

Weather-related risk data for Illinois regions

All statistics and information are current as of 2024. Please refer to the original sources for the most up-to-date data.