First-time homeowner? Here’s the complete guide.
Learn about how the insurance process works when you buy your first home.
Why you need home insurance.
When you're buying your first home, insurance probably isn't the first thing on your mind. But your lender will require proof of coverage before closing, and getting the right policy in place early makes the whole process a lot smoother.
This guide from Nobile walks you through everything you need to know.
Home insurance is not required by state law, but…
If you have a mortgage, your lender will almost certainly require you to maintain a homeowners insurance policy as a condition of the loan.
If you fail to provide proof of coverage, your lender can purchase force-placed insurance on your behalf, which is typically much more expensive and provides less coverage than a policy you choose yourself.
Even if you own your home outright, it's still strongly recommended. Without it, you're personally responsible for the full cost of repairing or rebuilding your home after a fire, storm, or other covered event.
What is covered by a homeowner’s policy
Last updated June 2026
A standard Massachusetts homeowners policy, also known as an HO-3, typically includes the following primary coverages:
Dwelling Coverage
Pays to repair or rebuild the physical structure of your home after a covered event like a fire, windstorm, or burst pipe. Your dwelling coverage should reflect your home's replacement cost, not its market value or purchase price.
Personal Property
Covers your belongings including furniture, clothing, and electronics if they're stolen or damaged by a covered event. Most policies cover personal property at actual cash value by default, but you can upgrade to replacement cost coverage so you're not getting depreciated payouts.
Liability Coverage
Covers your legal expenses and medical bills if someone is injured on your property or if you accidentally damage someone else's property. This coverage follows you beyond your home. If you accidentally injure someone or damage someone's property away from your house, liability coverage can step in.
Additional Living Expenses (ALE)
Also called Loss of Use coverage. If a covered event makes your home temporarily uninhabitable, ALE pays for your hotel, meals, and other living expenses while your home is being repaired.
Other Structures
Covers detached structures on your property like a garage, shed, or fence.
Medical Payments to Others
Pays for medical bills if a guest is injured on your property, regardless of fault. This is separate from liability and typically covers smaller claims quickly without involving a lawsuit.
What is not covered by a homeowner’s policy
Last updated June 2026
Just as important as knowing what's covered is knowing what isn't. Standard home insurance policies in Massachusetts usually do not cover:
Floods
Standard Massachusetts homeowners insurance does not cover flood damage.
This is one of the most common and costly misconceptions among homeowners. Massachusetts has significant coastal and riverine flood risk. If your property is in a flood-prone area, you'll need a separate flood policy through the National Flood Insurance Program (NFIP) or a private insurer.
Earthquakes
Not covered under standard policies. A separate endorsement or policy is required.
Wear and Tear
Gradual deterioration, maintenance issues, and aging systems are not covered. Insurance is for sudden, unexpected events, not deferred maintenance.
Mold from Flooding
If mold results from a covered event like a burst pipe, it's typically covered. If it results from a flood or long-term moisture problem, it's not.
How much coverage do you actually need?
This is where most first-time buyers get tripped up. When determining how much coverage you need, do not use the sale price, the tax assessment, or the value your mortgage company calculated. Those numbers reflect the real estate market, not what it would actually cost to rebuild your home from the ground up.
Your dwelling coverage should reflect your home's replacement cost, which is the actual cost of materials and labor to rebuild the structure in the event of a total loss. In Massachusetts, where labor and construction costs are above the national average, this number is often higher than people expect.
Many Massachusetts homeowners run into this issue because older homes often have materials, additions, and updates that change how replacement cost should be evaluated.
When we quote your policy, we'll help you determine the right coverage amount so you're not underinsured.
Massachusetts-specific things to know
Last updated June 2026
Massachusetts has some unique characteristics that affect how home insurance works here.
Older Housing Stock
Massachusetts has some of the oldest housing stock in the country. Older homes with original wiring, plumbing, or heating systems can affect both your coverage options and your premium. If your home has knob-and-tube wiring or oil heat, some carriers may have specific requirements before they'll write the policy.
Winter Weather
Nor'easters, ice dams, and frozen pipes are real risks here. Ice dams form when snow melts and refreezes at the edge of your roof, backing water up under your shingles and into your home. Damage from ice dams is typically covered under a standard policy, but prevention is always better. Make sure your coverage limits are adequate for the kind of weather Massachusetts actually delivers.
Flood Zones
Even if you're not in a high-risk flood zone, flooding can still happen. If your new home is in a flood-prone area, you'll need to purchase a separate flood insurance policy through the NFIP or a private insurer. Your lender may require it at closing depending on your property's flood zone designation.
The FAIR Plan
If you're buying a home in a high-risk area and standard carriers decline to write the policy, the Massachusetts Property Insurance Underwriting Association, known as the FAIR Plan, offers homeowner insurance to consumers who have been declined coverage in the voluntary insurance market. Nobile writes policies for MPIUA and can provide you with quotes if your home is not insurable on the voluntary market.
Non-Renewal Protections
Under Massachusetts law, if your insurer decides not to renew your policy, they must notify you at least 45 days before the policy's expiration date. That gives you time to find a new carrier without a gap in coverage.
How the process works at closing
Your lender will require proof of insurance, often called a binder, before your closing date.
Here's what to expect:
Get your quote and finalize your policy before closing. Most lenders want proof of coverage at least a few days before the closing date.
Your first year's premium is typically paid upfront at or before closing, either directly to your carrier or through your closing costs. After that, some borrowers pay their premium through a mortgage escrow account, while others pay their carrier directly. Your lender will clarify which applies to your loan.
Make sure your lender is listed as an additional insured on the policy. This is standard and we will handle it.
Ways to save on your first home policy.
There are many ways to save on your first homeowner’s policy. Here are some of the most common discounts and credits you may qualify for.
Home Discounts
- Account Credit (Policy Bundles)
- Paid-In-Full Discount
- Loyalty Discount
- Claim Free Discount
- Increased Deductible Discount
- Alarm Credit
- New Home Discount
- Protective Device Discount
- Superior Construction Credit
Availability and amounts vary by carrier and policy. Eligibility factors apply. All discounts and credits may not be listed.
Last updated May 2026
First-Time Homeowner Insurance FAQs
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No. Lenders cannot require homeowners to use a specific insurer. They can require you to carry adequate coverage, but the choice of carrier is yours.
That's one of the advantages of working with an independent agency like Nobile. We compare options across multiple carriers to find you the best fit.
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Market value is what your home would sell for in the current real estate market.
Replacement cost is what it would actually cost to rebuild the structure from scratch.
The foundation and land are not covered under the policy and won't figure into an insurance settlement, so your coverage should be based on rebuilding costs, not the purchase price.
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Your declarations page, often called a dec page, is the summary document that outlines your policy coverage, limits, deductibles, and premium. Your lender will ask for this at closing and you'll want to keep a copy somewhere accessible.
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An escrow account is managed by your mortgage servicer and holds funds for ongoing expenses tied to your home, typically property taxes and homeowners insurance.
Each month, a portion of your mortgage payment goes into the account, and your servicer uses those funds to pay your insurance premium when it comes due.
Not all borrowers are required to have an escrow account, so check with your lender to understand how your specific loan is structured.
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A binder is a temporary document that proves your insurance coverage is in place before your full policy is issued. Your lender will typically ask for a binder before closing.
At Nobile, we can issue a binder quickly once your coverage is confirmed.
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"I've been a loyal customer of Nobile Insurance Agency for over 40 years, and that alone says a lot. Whether it's home, auto, or any other coverage, they've always made the process clear and easy. It's rare these days to find a company that still values long-term relationships, and Nobile absolutely does.
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