Purchasing a Home? The cost of insurance can be a big factor in the affordability of buying a home and eliciting a positive experience. First thing we like to do with our clients is to get a homeowner’s insurance quote before they make an offer on a home.
This will provide a little more insight on the house. For example:
- We will check the loss history on a home. The seller should disclose any damage to the home but several times our loss history will reveal damage to the home that was not previously mentioned.
- Most often it’s water damage and that can be an indication of problems with the plumbing system.
- Water damage that is not property mitigated can indicate the possibility of mold.
- During our quote process we look for the Windstorm Property Inspection documentation. Homes built in high windstorm areas are required to be certified wind resistance for over a 100 mile per hour wind.
- This includes any exterior additions or repairs and roofs. Homes that have been re-roofed and do not have the proper documentation may be uninsurable for Windstorm.
- Checking the flood insurance rate maps for the flood zone is essential. It’s okay to buy a property in a high risk flood area as long as you are aware of the risk and the price.
- Keep in mind, homes that have flooded multiple times may be ineligible for flood insurance.
- Your lender will require you to carry flood insurance in certain high risk areas.
- The price for flood insurance is based on the elevation of the first floor and requires an Elevation Certificate to rate and purchase flood insurance. It’s a good idea to know the elevation before you commit to the purchase.
In the event that you cannot obtain a quote for homeowners insurance prior to the offer of your home, at least have these items checked at your home inspection while you are still in your option period and can change your mind about the purchase before it’s too late.
Expensive insurance can add hundreds of dollars a month to your house payment so take the extra time to exam this factor before you buy.
Contact Paula Smith Insurance while you are out looking for homes and maybe we can help shed some light on the areas that you are looking.