Top Consideration When Buying a Home
Congrats on buying a new house! While shopping for a new home can be an exciting experience, there are some insurance things that you should keep in mind as you hunt around. It may not be the most glamorous thing about buying a house, but insurance considerations are important to keep in mind. If something happens to your brand new home, then insurance is there to help protect you. It’s better to be prepared for accidents before they occur. These are some easy insurance things to bear in mind as you buy a home.
Shop Around for Homeowners Insurance
While you technically may not need homeowners insurance right when you buy your home (if you are paying with cash), it’s important that you insure your new home. Many mortgage lenders will require you to get a homeowners insurance policy. You should talk to your insurance agents about different homeowners insurance options. They may be able to find you deals that you otherwise would not be able to find. You may want to shop around for homeowners insurance before committing. However, make sure that you get coverage that will help protect you if your house sustains damage or something is stolen!
Homeowners insurance will usually help protect your home form the following:
- Fire and lightning
- Damage from hail and windstorms
- Theft and vandalism
- Smoke damage
- Falling objects, (tree branches, etc.)
- Damage from ice, snow, or sleet
- Frozen plumbing, heating, AC, etc.
- Vehicle hazards
- Riots or civil commotions
If your new house is in a high-risk flood zone, then you may be required to purchase a flood insurance policy. Even if your home is not in a typically regarded flood zone, you should still consider buying flood insurance. Your homeowners insurance policy will not protect your home form any flood damages. With the recent rise in tropical storms and hurricanes, its best to be prepared for the worst-case scenario. You may also want to think about the potential ways you could reduce home flooding in your new house. For instance, if your new home has a sump pump, it could come in handy.
Distance from the Fire House
The distance your new home to a firehouse can impact your homeowners insurance rates. The further your home is, the higher your insurance rate will be. The fire department can respond to a burning house faster if it’s located nearby, as opposed to a home that’s far away. Though you can’t pick up your home and move it to a fire station, you should keep this in mind as you search for houses.
Trampolines and Pools
Both trampolines and pools are huge insurance risks. While they may be fun, accidents can occur more easily when you have a pool or trampoline. Each year, about 240,000 accidents occur on trampolines. If you decide to keep a pool or trampoline in your backyard, tell your homeowners insurance company. If an accident occurs and you did not report that you had a pool or trampoline, your home insurance may not cover the accident. It’s best to be truthful to your insurer, otherwise it could haunt you in the future. If you do decide to have a pool, check out these pool safety tips!
Though older homes have charm that newer homes cannot replicate, they may not have the same building standards as more recently built homes. It’s important to have an inspection to check the foundation, roof, and other areas where the home may need some updating. If you live in an earthquake-prone area, check to see if the house is built to withstand an earthquake. You may need to retrofit a home to comply with new standards. If you are not in an earthquake zone, it’s still important to make sure the home’s structure is sound. If there are any repairs that need to be done, like replacing roof shingles, then it’s important to do so before there is an issue.
Buying a home is exciting – just make sure you protect with the proper insurance!