Avoid These 3 Common Mistakes First-Time Buyers Make With Home Insurance

Buying your first home in Oklahoma is exciting. You might be moving into a quiet neighborhood in Norman, into a new build in Edmond, or into a family home in Moore. One of the biggest steps in buying a home is making sure your house has the right home insurance.

But here’s the truth: many first-time home buyers make the same home buyer mistakes when choosing homeowners insurance. These mistakes can cost big when storms, fires, or other surprises happen. Let’s go over the top 3 mistakes to avoid so you can keep your home safe and your wallet protected.

• Mistake #1: Insuring for the Price You Paid, Not the Cost to Rebuild
• Mistake #2: Forgetting About Oklahoma-Specific Risks
• Mistake #3: Picking the Cheapest Policy
• Frequently Asked Questions

1. Mistake #1: Insuring for the Price You Paid, Not the Cost to Rebuild

A lot of new homeowners think their homeowners’ insurance should match the price they paid for their house. But that’s not always enough.

Here’s why: the price you pay for a home includes the land, but insurance is meant to cover the replacement cost of rebuilding the house itself. Some policies only cover actual cash value, which may not be enough to rebuild. In places like Moore or Newcastle, where tornadoes can destroy entire neighborhoods, the rebuild cost can be much higher than the original purchase price.

If you only insure for the purchase price, you may not get enough money from your insurance company to fully rebuild after a disaster. Make sure your homeowners insurance company explains the difference between replacement value and actual cash value so you understand your long-term costs.

2. Mistake #2: Forgetting About Oklahoma-Specific Risks

Oklahoma weather is no joke. Anyone living in OKC, Edmond, or Norman knows about hailstorms, tornadoes, and even wildfires out in rural areas. But here’s the problem: not every homeowners’ insurance policy covers these risks the same way.

For example:

• Some policies have separate deductibles for wind or hail damage.
• Others might leave out coverage you thought you had.

If you don’t check the details with your insurance company, you could end up paying a big chunk out of your own pocket after a storm. You may be focused on closing costs, home inspection reports, or getting mortgage preapproval from a lender or credit union—but don’t let insurance become an afterthought.

Smart home buyers in Oklahoma also consider things like:

• Whether they’ll need Private Mortgage Insurance with a VA loan or FHA loan.
• How homeowners association fees (HOA fees) impact their monthly budget.
• How storm damage can lower resale value without the right coverage.

3. Mistake #3: Picking the Cheapest Policy

When you’re already paying for a mortgage, it’s tempting to go with the cheapest homeowners’ insurance option. But cheaper doesn’t always mean better.

In Noble or Norman, a budget policy might:

• Have a very high deductible (meaning you pay more before insurance kicks in).
• Cover less of your personal belongings if there’s a fire or during a home renovation.
• Leave out certain protections you really need in Oklahoma.

Working with mortgage lending experts or using a mortgage calculator helps new home buyers plan their monthly budget. Just don’t forget that the right insurance is part of your overall financial picture. A cheap policy may save money up front but lead to much higher long-term costs if disaster strikes.

The Smart Move for Oklahoma Homeowners

Your first home is a huge investment, and protecting it the right way matters. Don’t just buy the cheapest policy, and don’t assume your insurance covers everything. Instead, work with a local agent who understands Oklahoma risks and can guide you to the right coverage.

Jim Holmes Insurance has helped families in Moore, Norman, Edmond, Newcastle, Noble, and Oklahoma City get the protection they need—without making it too expensive.

Ready to Review Your Coverage?

• Click here to get a fast, free quote.
• Call us at (405) 321-4664 to speak with a local insurance agent. We’re here to help you feel confident in your homeowners insurance policy—no matter what Oklahoma weather throws your way.
  
  
  

  Frequently Asked Questions