Ask These Insurance Questions When House Hunting

Insurance considerations for your new home.keys on a wooden home keychain

If you are house hunting, then you probably have a lot on your mind.  However, one of the things that you cannot overlook is the home’s various risks and how this will influence your homeowners insurance.  Before you close on a property, ask these insurance questions about the property.

  • 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  Outdated electrical systems increase the property’s chance of electrical fires and, in extreme cases, explosions.  If the home you are looking at has poorly maintained, unsafe, or outdated plumbing and electrical systems, then it will cost more to insure.

  • If the home at risk for wind damage?

Homes located in certain areas (such as tornado and hurricane-prone areas) face a higher risk for wind damage.  While standard home insurance policies will provide some coverage for wind damage, it may not be enough to address your risk completely.  As a result, you may need to invest in additional private or state-run insurance that is specifically designed to cover the damage caused by windstorms.  Securing this additional coverage comes at a cost, so make sure you consider this before closing on a home.

  • 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 a high-flood-risk zone, 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 closing on a home.  Do you need assistance with securing the right coverage for your new home?  If so, then contact us at Miller Carlisle Insurance Services.  Our dedicated team is ready to get you covered today.