What You Should Know About Homeowners Insurance Before Buying a House

by TeamPete Realty Services

When buying a home, most buyers focus on the big-ticket items—mortgage rates, inspections, closing costs. But homeowners insurance is a crucial part of protecting your investment, and too often it’s treated as an afterthought. Before you sign the dotted line, here’s what you need to know about home insurance and how it impacts both your finances and your peace of mind.


A well-maintained suburban home with a protective shield overlay representing insurance coverage for the home


What Is Homeowners Insurance?

Homeowners insurance is a policy that protects you financially from damage to your home and belongings, as well as liability if someone is injured on your property. Most mortgage lenders require a policy before closing—because they want to protect their investment just as much as you do.

What Does It Cover?

While specific coverages vary by policy, most standard homeowners insurance includes:

  • Dwelling protection – Covers damage to the structure of the home (from events like fire, hail, or windstorms).

  • Personal property coverage – Replaces belongings like furniture or electronics if they’re stolen or damaged.

  • Liability protection – Covers you if someone is injured on your property or if you accidentally cause damage to someone else's property.

  • Additional living expenses (ALE) – Pays for temporary housing if your home becomes uninhabitable due to a covered loss.

What’s Not Typically Covered?

Most policies don’t cover flood or earthquake damage—you’ll need separate insurance for that. Also, normal wear and tear, mold, and neglect-related issues are usually excluded.

How Much Does It Cost?

In Pennsylvania, the average annual homeowners insurance premium is around $1,200, but costs vary based on:

  • Location (e.g., flood zones or crime rates)

  • Size and age of the home

  • Coverage limits and deductibles

  • Your credit score and claims history

Pro Tip: If you’re moving to Central PA, local insurers may offer better rates and service tailored to the region.

Tips for First-Time Buyers

  • Start early – Don’t wait until a week before closing to shop for insurance.

  • Bundle and save – Combining home and auto insurance with the same provider can lower your premiums.

  • Understand replacement cost vs. actual cash value – Replacement cost policies cover what it costs to replace damaged items, while actual cash value deducts for depreciation.

  • Review your deductible – A higher deductible can lower your premium, but make sure you have enough savings to cover it.

Final Thoughts

Buying a home is one of the biggest financial decisions you'll make—don’t leave your investment unprotected. Working with an experienced real estate team and a reputable insurance provider ensures you’re covered from day one. At TeamPete Realty Services, we’re happy to connect you with trusted local professionals to guide you through every step, including securing the right homeowners insurance.

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+1(717) 697-7383

info@teampete.com

15 Central Blvd, Camp Hill, PA, 17011, USA

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