First-Time Homebuyer’s Insurance Checklist for Kentucky

Buying your first home is overwhelming. Insurance is one more thing to figure out — but it doesn’t have to be. This checklist makes it simple.

When to Get Insurance

You need coverage in place before closing day. Most lenders require proof of insurance before they’ll finalize the loan. Start shopping at least two weeks before your closing date to avoid any last-minute stress.

What Your Lender Requires

Your mortgage lender requires at minimum enough dwelling coverage to cover the loan amount. They’ll also need to be listed as an additional insured on your policy. Keep in mind — what the lender requires is a floor, not a ceiling. It protects the bank. You need to make sure it protects you too.

What to Actually Look For

Here’s what matters beyond the lender’s minimum requirements:

• Replacement cost coverage — covers what it actually costs to rebuild, not just the market value of the home
• Liability limits — standard $100k is often not enough; consider $300k or higher
• Flood exclusion — standard homeowners policies do not cover flood. If you’re near any waterway in Kentucky, get a separate flood policy
• Personal property coverage — covers your belongings inside the home
• Deductible — higher deductible means lower premium but more out of pocket at claim time

The Checklist

1. Gather home details (year built, square footage, construction type, roof age)
2. Get multiple quotes — rates vary significantly by carrier
3. Confirm coverage types match what you actually need, not just the minimum
4. Review all exclusions carefully — especially flood and earthquake
5. Confirm your lender’s requirements are met
6. Bind the policy before your closing date and get your binder letter

Common First-Timer Mistakes

The most common mistake is choosing the cheapest policy without understanding what it covers. A lower premium often means higher deductibles, actual cash value instead of replacement cost, or lower liability limits. Second most common: skipping flood insurance because you’re not in a “flood zone.” A large share of flood claims in Kentucky come from properties outside designated high-risk zones.

Work With a Local Agent

Working with a local independent agent can simplify the whole process. At Kentucky Bred Insurance, we can get you quotes from multiple carriers in one conversation — so you’re comparing apples to apples, not guessing. Call us at (502) 214-3200 or get a quote online before your closing date.