Buying a home is one of the most important milestones in life, and it comes with responsibilities beyond the closing table. One of the most critical yet often misunderstood parts of homeownership is homeowner’s insurance. At Patten Title, we’re here to help demystify this essential coverage so you can move forward with confidence, knowing your home and everything in it is protected.

Dwelling Coverage

This protects the structure of your home, walls, roof, foundation, and attached features like your garage, against covered perils such as fire, windstorms, or vandalism. Be sure your coverage reflects the replacement cost, not the market value of your home.

Personal Property

Your belongings, furniture, clothing, electronics, are covered in the event of theft or damage. Most policies cover 50–70% of your dwelling coverage amount. Pro tip: conduct a home inventory and consider add-ons (known as “riders”) for high-value items like jewelry or fine art.

Liability Protection

If someone is injured on your property or you accidentally cause damage to someone else’s property, this part of your policy can help cover legal fees and settlements.

Other Structures

Detached buildings like sheds, fences, or gazebos? Those are usually covered up to 10% of your dwelling coverage.

Additional Living Expenses

If a covered event makes your home uninhabitable, this part of the policy helps pay for temporary housing, meals, and other day-to-day costs.

Medical Payments

This covers minor injuries to guests, regardless of fault, helping avoid larger liability claims.

Many homeowners assume that their policy should match the market value of their home. In reality, what matters is the replacement cost—what it would take to rebuild your home today.

Here’s how to get it right:

1. Start with Square Footage
   Multiply your home’s square footage by the average local construction cost per square foot. For example, a 2,000 sq. ft. home at $150/sq. ft. means you need at least $300,000 in coverage.

2. Factor in Unique Features
   Things like custom cabinetry, specialty roofing, and recent renovations can raise the rebuild cost.

3. Account for Inflation
   Consider Extended or Guaranteed Replacement Cost coverage to cushion against rising material and labor costs.

4. Get a Second Opinion
   Use online estimators from your insurer or consult with an experienced agent. Many companies will even do on-site inspections to confirm coverage needs.

5. Skip the Market Value Confusion
   Remember: land value and real estate trends don’t impact rebuild costs. And when possible, choose replacement cost value over actual cash value to avoid depreciation reducing your payout.

6. Review Annually
   Home improvements? Local construction booms? Inflation? These all affect replacement cost. Revisit your policy yearly—most homeowners don’t.

Standard policies typically don’t cover floods, earthquakes, or damage from general wear and tear. If you live in a high-risk area, ask about supplemental policies for flood and earthquake protection.

As a trusted advisor in the homebuying journey, real estate agents can play a key role in helping clients understand and navigate homeowner’s insurance:

• Educate Early: Introduce the topic of insurance early in the buying process so clients aren’t making rushed decisions during closing week.

• Recommend Trusted Providers: Share a short list of reputable, responsive insurance agents in the area who understand local risks and rebuilding costs.

• Highlight Special Considerations: Point out unique features or updates in a home that could impact replacement value and encourage buyers to discuss these with their insurer.

• Support Due Diligence: Encourage clients to ask about flood zones, previous claims, and policy exclusions before binding coverage.

• Coordinate With Title Teams: Work closely with title partners (like Patten Title!) to make sure insurance is in place before closing, especially if the home is in a high-risk area requiring additional coverage.

A knowledgeable realtor makes all the difference, especially when it comes to helping buyers feel confident about protecting their investment.

At Patten Title, we believe empowered homeowners, and informed agents, create smoother transactions. Whether you’re closing on your first home or helping your clients get to the finish line, make sure homeowner’s insurance is more than just a formality, it’s part of the plan.