Essential Insurance Tips for First-Time Homebuyers

In 2023, first-time buyers made up just 32% of the housing market, a sharp decline from historical averages. Factors such as rising mortgage rates, housing shortages, and escalating risks from natural disasters make purchasing a home particularly difficult for newcomers. Many first-time buyers are underinformed about necessary insurance coverage, including flood and builder’s risk insurance.

Real estate and insurance expert Sandra Rampersaud emphasizes the importance of addressing these risks early in the homebuying process, particularly in the wake of climate-related disasters that have left many properties in need of repair. Rampersaud also highlights the unique challenges faced by immigrant buyers, who often lack knowledge of U.S. credit systems and homeownership.

She advises working with realtors and insurance brokers well-versed in these issues, stressing the importance of flood insurance and the need for thorough consultations to ensure a good client-agent fit. By being proactive about insurance, first-time buyers can mitigate long-term financial risks and better manage their investment.