Home insurance for new home buyers in Kentucky

Asshield is an independent insurance agency at 2240 Executive Dr Ste 103 in Lexington. We work with buyers across Central Kentucky, including Georgetown, Nicholasville, Richmond, Winchester, Paris, Versailles and Frankfort. You can do it by phone, text, email or in the office.

The short version: what you need before closing

1. A homeowners policy that starts on your closing date (or the date you take possession, if that comes first).
2. Proof of insurance for your lender. This is usually a binder or an evidence of insurance page, plus the declarations page once the policy is issued.
3. Your lender listed as mortgagee, with the right lender name, mailing clause and loan number.
4. A plan for paying the first year. You might pay it before or at closing, or it might be set up through your escrow account. Your lender decides how that works.

We handle items 1 through 3 with you and the carrier. For item 4, check with your loan officer.

When should you start shopping?

As soon as you have an accepted offer, start shopping. Don't wait until closing week. A good target is two to three weeks before closing. Here's why that buffer matters:

• The inspection report can change things. Roof age, an older electrical panel, or a hail-worn roof can change which carriers will write the house. Sometimes it changes how they settle a roof claim.
• Some carriers want to look at the home first, for example older homes, homes on acreage, or houses that have been vacant.
• Lenders and title companies run on deadlines. A binder that arrives the day before closing can still hold things up if a detail is wrong.

Already closing this week? Call us anyway at (859) 368-0162. We'll tell you plainly what we can and can't get done in time.

What a binder is (and what it isn't)

A binder is the carrier's temporary written confirmation that coverage is in force from a set date, before the full policy documents are issued. Lenders often accept a binder or an evidence-of-insurance form at closing. After that, the declarations page becomes your official summary of coverage, limits and deductibles.

A binder is not a separate kind of insurance. It's proof that your policy is starting. Before you sign, read it and check:

• Property address (unit or lot number on new construction)
• Named insureds (everyone on the deed who should be on the policy)
• Effective date
• Mortgagee clause and loan number
• Dwelling limit and deductibles

What to send us for a fast, accurate quote

• Property address and expected closing date
• Purchase contract, or the listing details: year built, square footage, number of stories, foundation type
• Roof age and material. The seller's disclosure or inspection report usually has it.
• Home inspection report, if you have it. It answers a lot of carrier questions.
• Heating type and the approximate age of electrical, plumbing and HVAC
• Lender name, mortgagee clause and loan number (your loan officer can send these)
• Your current auto policy, if you'd like home and auto quoted together and separately
• Anything unusual: a pool, a trampoline, dogs, a home business, a barn or outbuildings, a short-term rental plan

Lender minimums vs. what actually protects you

Your lender sets a floor. Usually the dwelling coverage has to be at least enough to protect the loan, with a deductible under their maximum. That protects the bank's collateral. It doesn't necessarily protect you.

When we compare options, we also look at:

• Dwelling limit based on rebuilding cost, not the purchase price or loan amount. Land doesn't burn, but construction costs can be higher than you'd expect.
• Replacement cost vs. actual cash value on the house and your belongings
• Wind/hail deductible. Many policies have a separate wind/hail deductible, sometimes a percentage of the dwelling limit. We'll turn that percentage into a dollar figure.
• Roof settlement terms. Some carriers settle older roofs on an actual-cash-value basis or use a roof payment schedule.
• Water backup (sewer or drain). It's often not included unless you add it.
• Liability limits that fit your household, and whether an umbrella makes sense
• Flood. It's excluded from standard homeowners policies. Check your address on the FEMA flood map, especially near creeks such as the Elkhorn, Town Branch, Hickman or Silver Creek. Lenders require flood coverage in mapped high-risk zones.

New construction in Central Kentucky

A lot of recent building has gone into new subdivisions around Georgetown, Nicholasville, Richmond and the edges of Lexington. New builds are often simpler to insure, but timing still matters:

• Before closing, the builder usually carries builder's risk coverage. Your homeowners policy needs to start when ownership passes to you.
• Send us the builder's information, the final square footage and the address (or lot number, until the address is assigned) as early as you can.
• Ask us how a new roof, new systems and the construction type can affect which carriers quote and how they rate the home.

Buying an older home, a farm, or a home with land

Older homes in Paris, Frankfort, Winchester and Lexington's established neighborhoods often have knob-and-tube or older panels, plaster walls or detailed trim that costs more to rebuild. Tell us what the inspection found. Some updates may need to be documented for certain carriers.

Homes in Woodford, Bourbon, Scott or Clark County that come with barns, fencing or acreage may need a different policy form or an added farm or outbuilding coverage. Tell us what's on the property and we'll match it to the right kind of policy.

Carriers we compare in Kentucky

For Kentucky homes we compare carriers such as Liberty Mutual and Grange, along with Progressive, Travelers, National General (by Allstate) and Openly. Which ones can quote depends on the home, the address and each carrier's underwriting. We'll tell you which ones actually come back.

Bundling with your auto policy

Some buyers like keeping home and auto with one carrier for one renewal date and one point of contact. Bundling can affect pricing with some carriers, but the best home carrier for your house isn't always the best auto carrier for your drivers. We'll show you both options, bundled and separate.

After you close

• Save the declarations page with your closing documents.
• If the premium is paid through escrow, the carrier will bill your mortgage servicer at renewal. Watch for the renewal notice anyway.
• Make a quick video inventory of your belongings.
• Call us before major projects such as a roof, finished basement, addition or pool. Some of them can affect your coverage. See new roof and home insurance in Kentucky.

Questions we hear from Kentucky home buyers

How soon before closing should I get homeowners insurance?

Start once your offer is accepted, ideally two to three weeks before closing. That leaves time for inspection findings, carrier questions and lender paperwork. The policy itself should start on your closing date.

Do I have to have homeowners insurance to close?

If you're financing the purchase, your lender will almost always require proof of homeowners insurance before closing. Cash buyers aren't required by a lender to carry it, but the house is still exposed from day one.

What does the lender need from me?

Usually a binder or evidence of insurance showing the property, the effective date, the dwelling limit and your lender as mortgagee with the loan number. We send it straight to your loan officer or closing contact when you ask us to.

Is homeowners insurance paid at closing?

Often the first year's premium is paid before or at closing, and some lenders also collect a few months up front for the escrow account. How it's handled depends on your loan, so confirm with your loan officer.

Can I change my homeowners insurance after closing?

Yes. You can shop and switch later. Just make sure the new policy starts before the old one ends, and let your mortgage servicer know. See shopping or switching home insurance.

Does the purchase price set my coverage amount?

No. The dwelling limit should reflect the cost to rebuild the home, which can be higher or lower than the sale price.

Closing soon? Let's get your binder lined up

Send us your address and closing date, and we'll start comparing carriers.
Asshield Insurance · 2240 Executive Dr Ste 103, Lexington, KY 40505 · (859) 368-0162
Start a home quote · Kentucky home insurance · Lexington home insurance · First-time homebuyer guide

Coverage, eligibility and pricing depend on the carrier, the property and underwriting. This page is general information, not a policy or a quote.