Connecticut First-Time Homebuyer Insurance GuideBuying Your First Connecticut Home?
Insure It Right the First Time.

By Ken O'Hara, CT licensed agent #20221083 · Updated September 26, 2026 · General information, not a coverage determination — your policy language controls.

What your lender requires

• Dwelling coverage at least equal to the home's replacement cost (lenders set the exact requirement).
• The lender named as mortgagee on the policy, so claim checks for the house include them.
• Proof of coverage — an evidence of insurance or binder sent to your lender and closing attorney before closing.
• Flood insurance if the home is in a FEMA high-risk flood zone and the loan is federally backed.

Most lenders collect the premium through escrow: a portion of each mortgage payment is set aside and the lender pays your homeowners premium and property taxes when due. You'll typically pay the first year's premium at or before closing.

Check these before you make an offer

A home inspection tells you what might break. A few items also tell you what insurance will cost — or whether you can get it easily:

• Roof age and condition. Older roofs can mean higher premiums, roof-specific deductibles, or depreciated payouts on roof claims.
• Oil tanks. Many older Connecticut homes heat with oil. Underground storage tanks are a red flag for many carriers; ask whether there is — or ever was — a buried tank and whether it was properly removed.
• Electrical. Knob-and-tube wiring and older fuse panels can limit your carrier options.
• Wood stoves and pools. Both are insurable but must be disclosed, and a pool increases your liability exposure.
• The home's claims history. Ask the seller for a CLUE report showing prior insurance claims on the property.

Flood zones and crumbling foundations

Look up the flood zone early. Flood is never covered by homeowners insurance, and if the lender requires flood coverage it can add significantly to your monthly payment — see our Connecticut flood insurance guide.

In north-central and eastern Connecticut, ask when and by whom the foundation was poured, and consider core testing for pyrrhotite. Crumbling foundations are generally not covered by homeowners insurance. Our Connecticut homeowners insurance guide explains the state CFSIC program.

Buying a condo instead

Condo owners carry an HO-6 policy, and what it needs to cover depends on the association's master policy. Read the bylaws and the master policy: a bare walls master policy leaves you responsible for interior walls, cabinets, flooring and fixtures, while an all-in policy covers more. Add loss assessment coverage for your share of any special assessment after a building-wide loss or a master policy deductible.

Title insurance, PMI and mortgage protection

• Title insurance. Your lender will require a lender's title policy. An owner's title policy, bought once at closing, protects your own equity against defects in title.
• PMI protects the lender, not you. Private mortgage insurance is required on many loans with less than 20% down; it doesn't pay anything to your family.
• Protecting your family. Term life insurance sized to at least the mortgage balance is usually more flexible and less expensive than mortgage protection insurance. See our Connecticut life insurance guide.

Your pre-closing insurance checklist

• Get homeowners quotes as soon as your offer is accepted.
• Confirm the flood zone and whether flood insurance is required.
• Give us the lender's mortgagee clause and loan number.
• Set coverage to replacement cost and add water backup coverage.
• Bundle with your auto policy — it's usually the largest discount.
• Make sure the evidence of insurance reaches your lender and closing attorney several days before closing.