If this is your first time buying a home, there are so many issues, documents, and requirements before you actually get the keys. This comes from years of mistakes, problems and hassles and all of the necessary paperwork is to protect, cover and account for certain issues that may or may not arise.
Having homeowners insurance is just one of the many additions you will need when buying a home. Since you usually have to obtain a loan for a home, the lender wants to make sure their investment is not a complete loss should something happen to the home. Not unlike car insurance, homeowners insurance is to cover repairs or replacements when or if something bad should occur.
You will want to shop around for homeowners insurance when you are in the process of closing on a home. This will need to be finalized before you sign the final documents so the lender can approve you obtaining the home and mortgage.
There are many variables to homeowners insurance but you will want to make sure the home is well covered for replacement if it is completely burned down and check to make sure as the value of the home goes up, the value of your insurance does as well. You don't want to be stuck having to replace a $300,000 home when you only insured it for $200,000. Talk with the insurance company and make sure you completely understand what you are buying.
If you are selling one home and moving into another, you will want to inform your insurance of the change and make sure all the updates happen before you move in.
Homeowners insurance can also cover personal property. This can even be covered if you lose personal property out of your car. Homeowners insurance can cover a great deal so anytime you have an issue with the home, even just a necessary repair, check with your homeowner's insurance to see what can be covered.