It's the time of year when home buying heats up. The realtors all come back from a long winter's nap to help you with this process, and people start listing homes as they decide to move. Mortgage rates coming down are getting folks excited. One thing that can be overlooked is what are the home insurance implications on that purchase for Burleson, Ft Worth, and points beyond. Here's a handy buyers guide of five things to consider for your homeowners insurance when looking at various homes.
1. The older the home the more expensive the premium!
While it may make complete sense to you, people get excited and forget it. The older something is, houses included, the more likely it is that things will break and go wrong. If you're debating between two homes and one is significantly older than the other, be prepared to need more money to insure and upkeep that older home. It's simply the reality of the older home.
2. Is the roof going to make the home un-insurable?
Most home buyers get their new purchase inspected prior to closing. It's just smart business for an investment of that magnitude. One of the things a home inspector will alert you to problems with is the roof! But they typically aren't experts in them. As a result, one service that we provide to clients and prospects is to connect them with a reputable roofing company to help determine exactly where they stand on their roof. Mortgages can't be funded without a proper replacement cost home insurance policy in place. An old or damaged roof can make that impossible. Don't get caught with that blindside late in the game.
3. Are there previous claims on the property?
Claim activity on homes from many of the major insurers is stored in a central database called CLUE. This allows the companies to cross check your history when preparing to issue a new policy. If the seller had a claim, it can affect your rate or even the ability to get the policy when you purchase. That prior claim needs to have been repaired or replaced. Don't find out about mold or a leaky roof AFTER you've moved in. It pays to have an independent insurance agent review the database to know for sure.
4. Out of town is more expensive than in town.
Homes that are in town come with certain protections like professional fire departments to respond to emergencies. Subdivisions come with fire hydrants. Cities like Ft Worth have building codes that are required to be met. If you live four miles outside of town, those things are less frequent. As a result, there is more that can go wrong with your home. An increase in risk leads to an increase in price for a policy.
5. Early Shopping Discounts Are A Real Thing!
Don't wait for the last minute to find a policy. Most home insurance companies in North Texas offer a discount for shopping for coverage eight days or more before needing the coverage to start. As a result, to get the best price on that policy, start early. It will not only make your loan officer happier, it will keep more cash in your wallet. And all of us want more cash in your wallet.
Those are the five big tips to having great home insurance when you are buying a new home. If you're currently looking at a purchase, we would love to help you evaluate your options. Schedule a time to speak with one of our agents soon.