Congratulations – you’ve found your dream home.
Whether you’re buying your first house or making your next move, one of your first priorities should be securing the right homeowners insurance coverage. While the process can feel overwhelming, taking the time to make informed decisions can help protect what is likely your largest financial investment.
As we recognize National Homeownership Month, Doing More Today is helping homeowners understand key insurance considerations that go beyond basic policies.
Start Smart: Don’t Rush Your Insurance Decision
One of the most common mistakes homeowners make is choosing insurance too quickly.
“Homeowners, both new and long-term, often make a quick decision based simply on the lowest premium – or the first option they see,” said Matt Hawley, mortgage production manager for Regions Bank. “It’s critical to fully understand your policy since it likely protects your single biggest asset.”
Bottom line: Taking extra time upfront can save you money – and stress – later.
Key Homeowners Insurance Coverage Types
Understanding the basics of homeowners insurance coverage can help you choose the right policy:
- Dwelling coverage: Protects the structure of your home from damage.
- Personal property coverage: Covers belongings inside your home, such as furniture, electronics and clothing.
- Liability coverage: Helps cover legal and medical costs if someone is injured on your property.
Note that coverage details, limits, and exclusions vary by insurer and policy, so homeowners should review their specific policy documents carefully.
How Deductibles Impact Insurance Costs
Your deductible plays a major role in your monthly premium:
- A lower deductible typically means a higher premium.
- A higher deductible usually results in a lower premium.
While a higher deductible may seem appealing, make sure you can comfortably afford it in an emergency.
How Much Home Insurance Coverage Do You Need?
A common question homeowners ask is: How much coverage is enough?
- Base your coverage on the cost to rebuild your home, not its market value or loan amount.
- Include detached structures such as garages, sheds and fences.
- Ensure your policy reflects current construction costs, which can fluctuate.
What Does Homeowners Insurance Not Cover?
Standard homeowners insurance policies often exclude or limit coverage for the following unless added by endorsement or separate policy:
- Flood damage (typically requires separate flood insurance)
- Earthquakes
- Sewer backups
Understanding these exclusions is critical to avoiding costly surprises.
Do You Need Flood Insurance?
Lenders typically use federal flood maps and regulatory requirements to determine whether flood insurance is required for a given property.
“Mortgage companies always check if a property is in a flood zone,” said Jim Branch, mortgage production manager for Regions. “If the property is located in a Special Flood Hazard Area and the loan is federally regulated or insured, federal law generally requires flood insurance.”
However, experts recommend considering flood insurance even outside high-risk areas.
“It’s usually affordable outside flood zones and provides an extra layer of protection during unexpected weather events,” Branch said.
Coastal vs. Inland Home Insurance Needs
Coastal properties:
- Often require separate wind or flood policies
- Costs may depend on:
- Home age
- Construction type
- Roof condition
“Hurricane-prone areas often require additional coverage, and several factors impact cost,” Branch said.
Inland properties:
Even away from the coast, risks still exist – such as severe storms, tornadoes and flooding – so comprehensive coverage remains essential.
Replacement Cost vs. Minimum Coverage
Insurance providers typically calculate a replacement cost estimate to ensure your home can be rebuilt after a total loss.
However, choosing only the minimum required coverage can be risky.
“People can get into trouble if they only carry the minimum coverage required by their mortgage company,” Branch said. “You need to consider whether you could fully rebuild your home after a total loss.”
Additional Factors That Affect Home Insurance Rates
Many variables influence your policy cost and coverage needs, including:
- Age and condition of your roof and water heater
- Proximity to fire stations and hydrants
- Trees or other nearby hazards
- Local weather risks
“That’s why it’s important to work closely with your insurance provider to ensure everything is considered,” Branch said.
Final Takeaway: Protect Your Investment
Choosing the right homeowners insurance isn’t just about finding the lowest price – it’s about protecting your home, your finances and your peace of mind.
“Working with a trusted advisor who understands how all the pieces come together is important,” said Keith Smith, Mortgage regional manager for Regions. “Our mortgage banking team helps simplify a complex process and treats our customers with timely advice and respect.“
By understanding your coverage options, evaluating risks and planning ahead, you can make confident decisions that safeguard your investment for years to come.
© 2026 Regions Bank, Member FDIC, Equal Housing Lender. NMLS 174490. This information is general in nature and is not intended to be accounting, legal, tax, investment or financial advice. Regions believes this information to be accurate as of the date written, but it cannot ensure that it will remain up to date. Statements or opinions of individuals referenced herein are their own—not Regions’. Consult an appropriate professional concerning your specific situation. The information should not be construed as a recommendation of a specific course of action for any individual or business. All Regions’ products and services are subject to qualification requirements, terms, conditions, fees, and credit approval.