Insurance Guide for Home Buyers
Insurance Guide for Home Buyers
6 Things to think about before you chose your next home
Thinking about moving? Looking for your forever home? Wanting to downsize or upsize? There are many considerations when it comes to buying your next home and one that is often overlooked is the implications of insurance, specifically Homeowners Insurance. Use this as a quick reference to help make your home purchase choice a choice that will not cost you more money and headaches in the long-term.
Location – Location – Location
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Look for the location and type of Fire Department and Fire hydrant distances
This may seem like an irrelevant thing to do but it can cost you big money over time. In North Carolina, houses that are within 5-6 miles of a fire department can get better rates on their homeowners insurance policy. Over 6 miles may be considered an unprotected property and many insurance companies will not offer to write a policy for you. Therefore your options are less and the prices are more.
Fire Hydrants that are within 1,000 feet of your home will give you a better rating and therefore save you money.
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The Beach is great, but the insurance rates are higher
Houses that are nearer to the coast of North Carolina are more expensive to insured because of the Wind exposure from hurricanes. There are very few insurance companies that will provide you with Wind Insurance and therefore a separate insurance policy is required, often through the State-run Insurance pool. Higher deductibles for wind will cost you more out of pocket if you have to file a claim.
3. The view of the river could mean Flood Insurance is required
Flood insurance is not generally covered on a standard homeowners insurance policy. If your property TOUCHES a flood zone, you will need flood insurance to satisfy your mortgage and to give you piece of mind as well.
Older may be better, but it may cost you more
- Year of Construction/Original Age
If you choose a historic or older home, be prepared to spend more for your insurance. Houses over 100 years old can be difficult to insure on the Standard Insurance market. Unless the house has been completely updated to include electrical & plumbing, many insurance companies will not offer to write a policy for you.
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Roof Age
The age of your roof matters. Several of the top insurance companies in the country consider a 15-year-old roof to be an older roof. Roof claims are one of the largest claim items that insurance companies face and with the rise in roof claims, insurance companies are getting stricter on what age of roof they will insured and what type of coverage they will offer.
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Talk to a local insurance professional
Before deciding on a house, discuss your planned purchase with your trusted insurance agent. Be open about what your plans are. If you’re going to have a homebased business, a trampoline, a pool, or anything else that is on your mind, discuss it upfront.
If your insurance cost was only one time, these things wouldn’t be a concern or factor in your buying decision. But since you will be paying a homeowners insurance for 30+ years, the added cost of your insurance can equate to a lot of money over the years.
These are but few of the factors that can affect the cost of your insurance.
Rodney Stewart, Agency Founder
I never knew that you should consider the age and condition of your roof by checking its physical condition. My wife told me she was planning to have a home insurance plan that covers living expenses for any property damages. He asked if I had any idea what could be the best option in choosing the best plan for us. Thanks to this informative article, I’ll be sure to consult a trusted insurance agency as they can provide more information for the best coverage for us.
It stood out to me when you mentioned that flood insurance is not usually covered on standard policies. If you are a homeowner, I would think that it would be a good idea to purchase flood insurance no matter where you live. Heavy rains can cause floods that can cause severe damage, so you would want to have insurance in place.
I like that you said that understanding the condition of your property could help with the most appropriate home insurance planning. My wife told me a couple of days ago that she was planning to have a homeowner’s insurance plan that covers liability for any potential property damages. She asked if I had any idea what could be the best option in choosing the best plan for us. I love this enlightening article. I’ll consult a trusted home insurance service as they can provide more information for the best coverage for us.
I like that you said that discussing home insurance with the most appropriate service provider is the best option for buying home insurance. My wife told me a couple of days ago that she was planning to have a homeowner’s insurance plan that covers liability for any potential property damages. She asked if I had any idea what could be the best option in choosing the best plan for us. I love this enlightening insurance guide article. I’ll consult a trusted home insurance service as they can provide more information for the best coverage for us.