New Home’s Condition Will Affect Insurance Costs
Many buyers overlook one important item when they consider the cost of a new home: insurance. Instead, they tend to focus on property taxes, the neighborhood, the school district, recreational and cultural facilities, the commute time, and, of course, the house itself. But they don’t calculate how much home insurance they will need to protect their investment, even though they will have to pay insurance for as long as they own that house. One major factor insurers consider when determining a premium is the structure’s condition. Before you put down a down payment for your dream house, here are a few questions you will need to answer before applying for home insurance quotes.
• Is the house well built and well maintained? Homes built by respected builders to meet current building codes are also less likely to be damaged by severe weather conditions. If the house has a new roof and is made with fire and/or hail resistant materials, you may even qualify for a discount on your home insurance policy. Another factor that could influence the cost of your home insurance policy is whether the house is built either with brick, wood, stucco or stone. Stately, older homes with ornate features — plaster walls, ceiling molding and wooden floors — may be handsome, but they are also more susceptible to damage. Typically, they have higher home insurance rates. If you are considering buying an older home, apply for home insurance quotes to calculate your premium.
• What is the condition of the plumbing and electrical systems? Pay special attention to the house’s plumbing and electrical systems. If they meet modern engineering-based building codes, they are less likely to be harmed by fire, wind, lightning and other natural disasters. However, plumbing and electrical systems can become unsafe with age and poor maintenance. If the house has unsafe and/or outdated systems, your home insurance rates will be higher. And many polices do not cover damage due to faulty or shoddy home maintenance. According to the Insurance Information Institute, it won’t cover you for water damage, if you haven’t properly maintained your pipes and water heater. The III recommends you check your plumbing and heating systems once a year to avoid problems.
• Is the house equipped to withstand natural disasters? If you live near the Gulf Coast or the Atlantic Ocean, make sure your new home will be able to withstand hurricanes and severe windstorms. Check to see if the house is equipped with storm shutters, reinforced hinges on outside doors and a new garage door. These improvements may not only lower your insurance premiums, but they may also protect your home from severe wind damage. If wind is able to get into your home through your garage, you could have serious damage in the throughout the rest of your home and you could have roof problems, according III. Ask about discounts for protecting your home from windstorms and hurricanes, when you apply for home insurance quotes.
A knowledgeable home inspector and your insurance agent can help you answer these questions. Whether you are buying your first home or upgrading to a new one, it is critical that you assess your insurance needs. Remember when you buy a homeowners or a renters policy, you’re insuring the structure of your home and your personal belongings in your home. Once you have determined the best coverage for your family’s needs, you’re ready to obtain home insurance quotes. Call agents in your local area, contact several insurance companies directly or use InsuranceQuotes.com to instantly get competitive home insurance quotes from the nation’s leading insurance providers. Take the time to protect you and your family today.
