House Insurance Checklist

Many consumers get so swept up in the homebuying process that they forget to factor house insurance considerations into their decision. As a result, they often end up with a home that is either uninsurable or very costly to insure. Homebuyers can avoid these and other house insurance problems by keeping coverage issues in mind as they shop for a new home. Below, you will find a checklist of house insurance considerations you should address as you house hunt.

• Construction materials. The type of material from which the house is built will influence your premiums, so try to look for sturdy homes that are up to current building codes. For instance, in hurricane-prone regions, you might want to look for brick houses.
• The house’s age. Older houses often have things that are expensive to replace, such as wood floors. If you choose a home with these features, your premiums will go up.
• The roof’s condition. Even if you intend to fix the roof of your new house once you buy it, a roof that is in disrepair will run up your house insurance rates until you can prove that it has been replaced or repaired.
• Heating, electrical, and plumbing systems. These systems quickly wear out and may not be up to current standards in older homes. Ask the seller or real estate agent if these systems have been upgraded recently.
• Safety equipment. You can considerably lower your house insurance rates if you purchase a home with certain safety devices already installed. Look for homes with deadbolt locks, burglar alarms, smoke alarms, etc.
• Expensive extra features. Certain features like fireplaces and swimming pools will raise your premiums for both property damage and liability coverage. If you want to purchase a home with these extra features, think about supplementing your house insurance coverage with an umbrella liability policy.
• Fire department concerns. Home insurers give the best rates to homeowners with properties that are close to a fire hydrant and have a nearby fire station. You will also pay less for your coverage if your local fire department is a professional team rather than a volunteer squad.
• The risk of natural perils. Living in a coastal area can offer cool breezes and scenic views, but your house insurance rates will not be quite as pleasant. Coastal areas prone to hurricanes and flooding could make house insurance unobtainable or prohibitively expensive. Likewise, if you want the lowest premiums possible, you should avoid buying a home in areas with frequent earthquakes, tornadoes, and other natural perils.