Buying a home is exciting — new space, new plans, new everything.
But here’s the part too many people skip until the last minute: insurance.
Wait too long, and you’ll end up paying more or scrambling to find coverage that actually works.
Over two-thirds of homeowners are underinsured — short by about 18% on average. That’s a $36,000 gap on a $200,000 home.
Is your home underinsured? 8 key points – United Policyholders
Let’s fix that before you ever sign the papers.
Lock In Coverage Early — Before Closing
Most lenders want proof of homeowners insurance at least 10 days before closing.
If you wait until the week of, you’re asking for stress.
Start getting quotes as soon as your offer is accepted. That gives you time to handle surprises — like an older roof or outdated wiring — before your bank hits pause.
Pro tip:
Have your policy picked out two weeks before closing.
That buffer can save you a last-minute panic — or worse, a moving truck with nowhere to unload.
Understand Replacement Cost vs. Purchase Price
Here’s a common mistake: assuming your home’s price equals its coverage amount.
It doesn’t.
Rebuilding costs are driven by materials and labor — both of which have gone up fast.
That $250,000 Buffalo home could cost well over that to rebuild after a fire.
Work with your agent to calculate the replacement cost, not the sale price.
Yes, it might feel high — but it’s what you’ll actually need if disaster strikes.
Most carriers require at least 80% of rebuild cost coverage to pay full claims.
In plain English: don’t skimp now to regret it later.
Use the Inspection to Your Advantage
Your inspection report isn’t just for negotiating — it’s your insurance cheat sheet.
Old wiring? A 30-year-old roof? Your insurer will notice.
Some of these can mean higher premiums or even a “no quote.”
Here’s how to use that info smartly:
- Fix easy things now (smoke detectors, handrails, sump pump checks).
- Gather proof of maintenance for older features — like roof or plumbing.
- Ask about discounts for safety updates you’re already planning.
For example, many carriers only cover actual cash value on roofs over 15 years.
Know that before you close — it could mean negotiating a roof credit or finding an insurer that covers full replacement.
Don’t Get Caught by Last-Minute Surprises
Picture this: you’re days from closing, and your insurer says,
“We’ll write the policy — once the fuse box is replaced.”
Now you’re calling electricians and delaying closing.
It happens all the time.
We once helped a Buffalo buyer whose deal almost fell apart when an old space heater became a last-minute deal-breaker.
Avoid that by vetting the home’s insurability early.
If something pops up, you’ll have time to fix it or find a carrier who works with older homes.
Also check for location risks like:
- Flood zones: Regular homeowners insurance doesn’t cover flood damage.
- Sewer backup areas: A $50 add-on for water backup can save thousands in older Buffalo neighborhoods.
A quick talk with a local agent can tell you what coverage your address really needs.
https://www.bankrate.com/insurance/homeowners-insurance/states/
Real Story: Preparation Pays Off
A young couple buying a historic home on Buffalo’s West Side called us right after their inspection.
The report showed century-old plumbing and outdated wiring — red flags for most insurers.
Because they started early, we had time to find a carrier that specializes in older homes.
They also got the seller to escrow funds for an electrical upgrade.
By closing day, their coverage was active and approved — no last-minute drama.
Meanwhile, another buyer across town waited until 48 hours before closing… and got stuck when their wood stove wasn’t covered. Their deal stalled.
Same market. Different timelines.
Preparation made all the difference.
Don’t Forget: Budget for It
You’ll usually pay your first year’s premium at closing.
In New York, that’s about $1,800 a year on a $300,000 home — give or take depending on location and updates.
Add that to your closing costs.
It’s not the time for surprises when your attorney asks for a check.
If you got a quote months ago, check again before closing. Prices move.
The Bottom Line
Insurance shouldn’t be an afterthought.
Start early, use your inspection wisely, and make sure your policy actually fits your home.
The day you get your keys, you should already be protected — not worrying about whether your coverage went through.
So before you start picking paint colors, get your insurance in order.
We can help you line it up while you’re still house-hunting, and spot issues before they become deal-breakers.
Protect your new home from day one.
Get a quote comparison today — and close with confidence.
Fetter Agency 