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Insurance Factors to Consider When Buying a New Home

home with "sold" sign on lawn, insurance for homebuyers

Home buyers, take these insurance factors into account before making an offer.

If you are looking to purchase a home, then you likely have a list of features that you want on the property.  However, home buyers should also consider how the property will affect their insurance rates when they are looking around.  By choosing a home that is considered lower-risk, homeowners can save a considerable amount of money on their homeowners insurance in North TexasTo determine if a property will have positive insurance implications, make sure you ask these questions before you buy.

  • Is the home located near a fire department?

No matter what type of home you are looking at or where it is located, there is always a risk for home fire.  This is why insurers will factor in how long it will take for local firefighters to arrive at the property in the event of a fire emergency.  The closer the property is to a fire station, the lower the risk for serious fire damages.  Naturally, this translates into cheaper insurance rates for the homeowner.

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  Outdated electrical systems increase the property’s chance for electrical fires and, in extreme cases, explosions.  If the home you are looking at has poorly maintained, unsafe, or outdated plumbing and electrical systems, then it will likely cost more to insure.

  • Is 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.

These are some of the insurance factors to consider before buying a home.  Do you need help protecting your new property with the right homeowners insurance in North Texas?  If so, then contact the experts at Mike Leonard Insurance Agency.  Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.