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Homeowners Insurance Guide

Your lender will require homeowners insurance before closing. Here's what you need to know to protect your investment and find the right policy.

What Home Insurance Covers

A standard homeowners policy protects you in six key areas.

Dwelling Coverage

Pays to repair or rebuild your home if it's damaged or destroyed, including attached structures like garages and decks.

Other Structures

Covers detached structures on your property like sheds, fences, detached garages, and workshops.

Personal Property

Protects your belongings — furniture, electronics, clothing, and more — if stolen or damaged. Consider replacement cost coverage for full value.

Loss of Use

Covers additional living expenses — temporary housing, food, and mileage — if your home becomes uninhabitable during repairs.

Liability Protection

Covers legal and medical costs if someone is injured on your property or if you accidentally damage someone else's property. Typically starts at $100,000.

Medical Payments

Pays for minor injuries to guests on your property regardless of fault — typically $1,000 to $5,000 per person. No lawsuit required.

What's NOT Covered

Standard policies exclude these risks. Separate coverage is available.

×
Earthquakes

Requires a separate earthquake policy — important for Washington State.

×
Floods

Flood insurance must be purchased separately, often through the NFIP.

×
Landslides & Sinkholes

Requires a “difference in conditions” policy for coverage.

×
Sewer Backup

Usually available as an add-on endorsement to your standard policy.

Tips for First-Time Buyers

Smart steps to find the right coverage at the right price.

1

Shop Around & Compare

Get quotes from at least three companies. Premiums can vary significantly between insurers for the same coverage.

2

Choose Replacement Cost

Replacement cost pays to repair or replace at today's prices. Actual cash value deducts depreciation — meaning you'll get less for older items.

3

Understand Your Deductible

A higher deductible lowers your premium, but make sure you can afford to pay it out of pocket if you need to file a claim.

4

Bundle for Savings

Many insurers offer discounts of 10–25% when you bundle homeowners and auto insurance together.

5

Keep a Home Inventory

Document your belongings with photos and receipts. Store in a fireproof safe or cloud backup. This speeds up the claims process significantly.

6

Consider Earthquake Coverage

Washington is in a seismically active zone. Earthquake insurance is not included in standard policies and must be purchased separately.

Washington State Resources

The WA Office of the Insurance Commissioner offers free consumer guides and a helpline to answer your questions.

Frequently Asked Questions

Common questions about homeowners insurance.

Is homeowners insurance required? +
While not legally required by the state, your mortgage lender will require it as a condition of your loan. If you don't maintain coverage, the lender can place expensive “lender-placed insurance” on your property at your expense.
How much does homeowners insurance cost in Washington? +
The average cost in Washington State ranges from $800 to $1,500 per year, depending on your home's value, location, age, and the coverage level you choose. Factors like proximity to fire stations and your claims history also affect your premium.
What's the difference between replacement cost and actual cash value? +
Replacement cost pays to replace your property at today's prices without deducting for depreciation. Actual cash value reimburses you for the depreciated value — for example, a 5-year-old TV would only be reimbursed at its current worth, not what you paid for it. Replacement cost coverage gives you better protection.
When do I need to have insurance in place? +
You must have proof of homeowners insurance before your closing date. Most lenders require you to have a policy bound at least a few days before closing. Start shopping for insurance as soon as your offer is accepted so you're not scrambling at the last minute.
Do I need earthquake insurance in the Puget Sound area? +
It's strongly recommended. The Puget Sound region sits near several active fault lines. Earthquake damage is explicitly excluded from standard homeowners policies. The cost depends on your home's construction type and age, but the peace of mind is worth considering — especially for a first-time buyer making their largest investment.

Our Recommended Agent

We work with an agent we trust to take great care of our clients.

Bilingual · English & Spanish

Stephanie Snyder

Licensed Insurance Agent · Comparion Insurance Agency

Stephanie specializes in home, auto, and life insurance and works closely with first-time home buyers in the Puget Sound area. She's bilingual, responsive, and makes the insurance process simple and stress-free.

Get a Quote from Stephanie

How can we help you?

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