Buying a new home can be an overwhelming experience for many people. There are so many things to think about that homeowners insurance becomes an afterthought. But unless you are comfortable enough that money is no object, doing a little bit of research to find out what to look out for in your new home can really pay off in the end. This is because a few seemingly innocent things could mean the difference between paying $1,000/year or $2,000/year or more for your home insurance, for example.
What are some of these factors and what can you do about them?
1. Prior loss history of the home. If the house you’re thinking of buying has sustained serious losses in the past, it may be expensive or difficult to insure. In order to prevent insurance rejections, ask the seller for a CLUE report to find out about the home’s history of prior claims.
2. Location location location! There are several factors having to do with a home’s location that will make a difference to an insurance company. You may be excited about the gorgeous view from the patio, but is that patio looking out over a canyon full of uncleared brush? Since brush is a fire hazard, ideally, you’ll want your home to be at least a 1,000 feet away from brush.
3. And since we’re talking about location, the proximity to a fire hydrant and a fire station is also important. You’ll want to be within 1,000 feet of a fire hydrant and 5 miles of a fire station. This is usually not a problem in a metropolitan area.
4. Does the house come with a pool? If so, you should know that many insurance carriers will decline coverage if the pool comes with a diving board or a slide. Trampolines are similarly a problem, as they can be a liability risk. If you don’t have your heart set on having them, it may be worth your while to have them removed.
5. If you’re buying an older home, you’ll want to find out what major renovations have taken place recently. An old roof and old plumbing can leak and cause water damage. An old electrical and heating system can be a fire hazard. Insurance carriers will want to know when your home’s roof, plumbing, electrical and heating were last renovated – and may decline coverage if no renovations have taken place within the last 20 years.
Get a homeowners quote at http://www.toyeninsurance.com/homequote.html or call (858) 836-3050
*California only
