New homeowner checklist

Required

• Homeowners insurance, in force at closing — the lender will enforce it
• Flood insurance, if the property is in a designated flood zone
• Private mortgage insurance on conventional loans below a certain down payment, or the equivalent on government-backed loans
• Title insurance at closing

The first thing people get wrong

Homeowners policies are generally written on rebuild cost, not purchase price. Those are different numbers, and in either direction.

A policy set to the purchase price can be substantially wrong. Ask how your dwelling coverage figure was calculated, and whether the policy includes extended or guaranteed replacement cost — which matters when construction costs rise after a widespread event.

The second thing

Flood is not covered by a standard homeowners policy, anywhere. Being outside a designated flood zone means you aren't required to buy it, not that you can't flood.

A meaningful share of flood claims come from outside high-risk zones. Ask what flood coverage would cost at your address before deciding it doesn't apply to you.

Worth having

• Life insurance sized to the whole household need, not just the mortgage
• Disability coverage — an income interruption is more likely than a death during working years
• An umbrella policy, once you have equity worth protecting
• Water backup coverage, which is a common exclusion and a common claim
• Earthquake coverage, where relevant, which is also separate

Not required, whatever the mail says

Mortgage protection insurance. Recordings are public, so expect solicitations naming your lender and loan amount, sometimes styled to look official.

The product is legitimate; the requirement framing isn't. Evaluate the need calmly and compare it against ordinary term life.

In the first month

• Photograph or video every room, and store it somewhere off the property
• Note serial numbers for high-value items
• Check whether high-value items need scheduling — jewellery, art and collections often have low standard limits
• Set a calendar note for when PMI can be cancelled
• Check your deductible is an amount you could actually pay