Buying a home is a major milestone in life that inevitably comes with a long to-do list. While upgrading appliances and jumping into yard maintenance may feel like the most urgent priorities on your new home owner checklist, the importance of reviewing your new house insurance coverage is often overlooked.
We’ve put together this handy homeowner checklist to simplify the process so you can focus on more pressing decisions—like choosing the perfect paint color.
What affects home insurance coverage and prices?
In today’s real estate market, it is easy to get swept up in a plethora of listings and competitive bidding wars. Most buyers know to ask about property taxes and school districts, but not everyone is aware of the factors that affect insurance rates and affordability when buying a new home. In addition to the basics like your home̵
7;s age, roof condition and flood potential, here’s a short list of six additional considerations that may come as a surprise:1. Proximity to coastline, earthquake, forest fire or flood zones
Geography plays a large role in determining risk, especially in areas of the country prone to hurricanes, earthquakes or wildfires. If you’re moving into a zone where these acts of nature are a problem, be sure to explore how the construction of your home affects its ability to withstand a potential hazard – then discuss it with your agent.
Digging Deeper: Check FEMA Flood Map to review flood zones in the area before buying.
2. Proximity to a fire hydrant and/or fire station
When it comes to house fires, every minute counts. The distance between your home and the nearest fire station or hydrant can affect insurance prices, as even small delays in response time increase the potential for loss.
3. Wood stoves
Although cozy, indoor wood stoves pose additional fire hazards to a home. If you are considering a new home with a wood stove, let your agent know.
4. Old building materials and methods
Historic homes are known for their charm, but beneath the surface they can also carry additional dangers. Old material choices and approaches to building can pose greater risks and cause more problems than modern building practices. If you’re buying an older home, be sure to consider things like wood ceilings and outdated electrical systems, which a homeowner’s policy may not cover.
5. Swimming pools and trampolines
While recreational features like swimming pools and trampolines add an extra layer of fun to any backyard soiree, they also pose additional liabilities. If you are considering a home with either, discuss these extras with your agent to determine the appropriate additional coverage needed.
6. Specific dog breeds:
Ownership certain dog breeds can affect the availability and pricing of homeowner’s insurance. Some carriers will decline to cover these households entirely, while others may offer coverage excluding liability resulting from dog bite claims. Talk to your agent to learn more.
What to look for during the house hunting process
One of the best ways to avoid discovering that your dream home is really an insurance nightmare is to hire a knowledgeable inspector once you’re under contract. They will inspect the house from top to bottom and note any issues or problems. And you don’t have to be a pro to keep an eye out for potential red flags during the house hunting process. For example, here are some things to look for:
- Water stains on the ceiling, which may indicate previous leaks or water damage
- Water damage on the floor or in the basement potential sign of previous flooding in the home
- Termite damage, learn what to look for and why you should avoid it
Don’t hesitate to ask the seller about previous damage, problems or losses. If repairs have been made, ask who completed the work to ensure it was done by a licensed contractor or professional.
Central tip: Only hire licensed, qualified movers, and always ask to see proof of insurance before signing a contract. As a homeowner, this helps protect you from liability resulting from physical loss or damage that may occur during the moving process.
New Homeowner’s Checklist: Get the coverage you need
One of the first and most important things you can do when buying a new home is to book a consultation with your insurance agent. Meeting with them early in the process ensures that they have time to get everything in order before your due date. They will also walk you through a list of relevant questions about your new home to provide guidance on the right coverage for your needs.
Below, we dive into five of the most common policies that new homeowners need.
1. Personal property insurance
While most homeowner’s policies provide coverage for personal property such as jewelry, art, furs, weapons, and musical instruments, there are often limits on the amount of coverage and the covered causes of loss. These limits can leave coverage gaps. Personal Property Coverage provides broader coverage that helps fill exclusions and gaps in the event of a loss.
2. Equipment Outage Coverage
Typically, homeowner’s insurance does not cover mechanical or electrical breakdowns. By adding equipment interruption coverage to your homeowner’s insurance policy, you can enjoy peace of mind knowing that many of the expensive systems and appliances—like your plumbing, refrigerator, washer, and dryer—are covered.
3. Utility Line Coverage
In most cases, the underground sewer and water lines that connect a home to the street are the homeowner’s responsibility, although most homeowner’s policies exclude coverage for underground lines. Utility Line Coverage can save you thousands of dollars by kicking in when a covered line leaks, breaks, breaks, ruptures, collapses or arcs. If a covered loss occurs, it pays for the damage to the power line, excavation costs, expedited repair costs and outdoor property damage resulting from the loss.
4. Home Business Plus Policies
If you run a business from your home, coverage for certain items related to the business may be limited or excluded under standard home insurance. Home business coverage helps protect your home business’s equipment and supplies, and your home business’ liability for covered losses.
5. Boat jetty
If you own lakefront property, your homeowner’s policy may not provide coverage for your permanent dock if it is damaged due to the weight of ice or snow. A Boat Dock Coverage endorsement ensures peace of mind by providing coverage to a permanent pier, wharf or jetty when physical damage is caused by freezing, thawing, pressure or the weight of water or ice, whether driven by wind or not.
Central tip: Already a homeowner? It’s a good idea to schedule an annual coverage review with your agent. Be sure to also contact them when you plan to upgrade your home or purchase new valuables to ensure adequate coverage.
Enjoy additional coverage with Central’s Signature and Summit Homeowners Policies
In addition to incorporating many of the specialized coverages listed above, Central’s Signature and Summit Homeowners insurances offer a wide range of additional coverage, including:
- Full replacement cost coverage to rebuild your home in the same location after a covered loss, even if the cost of rebuilding exceeds your policy limit.
- Replacement cost coverage for your personal belongings without deduction for depreciation.
- Payout options if you choose not to repair or replace your home after a covered total loss.
- Exemption from excess for a covered loss in excess of $50,000.
- Additional living expenses provides coverage for the extra expenses you incur to maintain your standard of living while your home is repaired after a covered loss.
- Removal and replacement of trees pays to remove tree debris and replace trees fallen on your property due to a covered loss.
Are you ready to find the right coverage for your new home?
Whether you’re preparing to buy a new home or are interested in better protecting the place you already call home, we’re here to help. Get started by searching a central agent in your area.
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