When should i buy home insurance and how much should i get?

Insurance coverage on your home should begin as soon as you become the legal owner, even if it is still under construction. If you are borrowing money to pay for your home, the lender will usually require you to insure the building for the un-depreciated amount that it would cost to replace. Your broker will help you to determine that amount. Remember, however, that land is not insurable. (Many lenders still tend to look for insurance in the amount of the mortgage – which, of course, includes land value – unless the insurer provides information that the dwelling itself is insured to its replacement value, being what it would cost to rebuild the home if it were destroyed.)