Insurance Considerations for Home Buyers

Before you close on a home, consider these insurance factors.

When you are shopping for a new home, there’s a lot of things to consider.  While things like location, school districting, and structural features are all important to think about, you shouldn’t forget to consider homeowners insurance as well.  Here are some of the home insurance questions you should ask before deciding on a home.

  • Is the home located near a fire department?

No matter what type of home you are looking at or where it is located, there is always a risk for home fire.  This is why insurers will factor in how long it will take for local firefighters to arrive at the property in the event of a fire emergency.  The closer the property is to a fire station, the lower the risk for serious fire damages.  Naturally, this translates into cheaper insurance rates for the homeowner.

  • What is the condition of the plumbing and electrical systems?

When you are having a prospective home inspected, ask your inspector to pay particular attention to the state of the home’s plumbing and electrical systems.  Poorly maintained plumbing systems can lead to major damage events such as flooding and water damage.  Outdated electrical systems increase the property’s chance of electrical fires and, in extreme cases, explosions.  If the home you are looking at has poorly maintained, unsafe, or outdated plumbing and electrical systems, then it will cost more to insure.

  • What is the property’s flooding risk?

All standard home insurance policies explicitly exclude coverage for flood damage.  This means that, if the home you are looking at is in an area of high-flood risk, then you would need to secure supplementary insurance through the National Flood Insurance Program.  Paying for this insurance on top of your regular homeowners insurance will result in considerable costs, so make sure you consider a property’s flood risk before you make an offer on the home.

These are some of the insurance considerations you should make before buying a home.  Looking to secure the right coverage for your new home?  If so, then contact the team at Pierce Insurance Group.  Our agents are eager to get you the coverage that you need today.