Closing on a home in Sacramento is a whirlwind, and homeowners insurance is one of those items that has to get handled correctly, and on time, or it can delay your entire closing. Here’s what to expect and what to do once you’ve got the keys.
Why Insurance Has to Be in Place Before Closing
If you’re financing your home, your lender requires proof of homeowners insurance before closing, since the home serves as collateral for the loan. Your insurance binder or policy documents typically need to be provided to your lender or title company a few days before the closing date.
What to Do Right After Closing
Confirm Your Policy Is Active
Double-check with your agent that your policy is officially active as of your closing date, not just quoted or pending.
Review Your Coverage Limits Again
Quotes are sometimes finalized weeks before closing. Confirm your dwelling coverage still reflects an accurate rebuild cost and that nothing changed during the closing process.
Document the Home’s Condition
Take photos or video of the home’s interior and exterior condition right after move-in. This creates a clear baseline record in case you ever need to file a claim.
Update Your Mailing Address Everywhere
Make sure your insurer, along with other accounts, has your new address updated so policy documents and renewal notices arrive correctly.
Consider Bundling With Your Auto Policy
If you haven’t already, this is a good time to bundle your new homeowners policy with your auto insurance for a potential discount on both.
Check Whether You Need Additional Coverage
- Flood insurance if your new home is in or near a mapped flood zone
- Earthquake coverage depending on the home’s age and construction
- Scheduled coverage for any high-value items you’re bringing into the home
- A sewer backup endorsement if the home has older plumbing
Update Your Home Inventory
As you move in and acquire new furniture or belongings, keep an updated home inventory list with photos and estimated values. This makes any future claim significantly easier to process accurately.
Set a Reminder to Review Your Policy Annually
Rebuild costs and personal property values change over time. Reviewing your policy each year, rather than letting it auto-renew indefinitely, helps make sure your coverage keeps pace with your actual situation.
Frequently Asked Questions
When exactly does my homeowners insurance need to start?
Typically on or before your closing date, since your lender requires proof of active coverage to finalize the loan.
Should I photograph my new home right after moving in?
Yes, this creates a helpful baseline record of the home’s condition in case you ever need to file a claim.
Do I need to update my policy if I renovate soon after moving in?
Yes, significant renovations can affect your home’s rebuild cost and should be reflected in your coverage.
Make Sure Your New Home Is Properly Covered
Eugene C. Yates Insurance Agency can help confirm your policy is active, accurate, and complete after your Sacramento home purchase. Contact us today for a free review.