A family of 3 in front of their new home with a SOLD sign

Insurance Tips When Buying A House

Whether you’re buying your first home or a new one, the process is as exciting as it is stressful: The purchase of a home is a huge undertaking that requires a good deal of forethought and research. But once the fun part of finding your dream home begins, you’ll find yourself spending evenings and weekends driving around town with your real-estate agent, and wandering through what might become your home. And at night, you dream about paint colours and furniture arrangements.

Do You Really Need It?

While home insurance is not technically a legal requirement, we never recommend going without coverage. And not just because it protects your home and possessions against damage or theft. Most, if not all mortgage companies require borrowers to have insurance coverage for the value of your property and won’t make a loan without proof of it.

There are a range of options, from basic fire policies to high value home insurance with all the bells and whistles. Depending on your lifestyle and concerns, you’ll want to talk to your broker to make sure you have the right fit.

Choose Your Own Insurance

Just like property taxes have become commonly rolled into an escrow account and made part of a mortgage payment, so have homeowner’s insurance payments. Every lender requires that you have homeowner’s insurance in place. But that doesn’t mean that your mortgage company has to determine your insurance!

We can help you find the right protection at the best rate for your new home. All you have to do is get us involved early. Follow this short checklist, and with your permission, we can process everything so much faster when the closing date comes. Keep in mind that deadlines are always tight in the mortgage business.

How Far is the Nearest Fire Station?

The distance of the nearest fire station has an impact on your homeowner’s insurance rates. The further away the nearest fire station is located, the higher the rate. This makes sense, in a way: if you ever had a housefire, every second counts.

With no fire department nearby, the risk for a major or total loss of your home is much higher. And insurance companies charge for higher risk.

Don’t Get Bounced by a Trampoline (or Pool)!

It’s important to make sure you mention any structures on your property that could add extra risk, like a swimming pool or trampoline. If somebody gets injured while jumping or swimming, you may be held responsible for the damages. That can mean many years of medical payments, or worse.

Pools and trampolines can often be considered “attractive nuisances.” Most insurance carriers have recognized the dangerous risk exposure associated with them, and cover it for a bit of extra premium or with safety procedures in place.

Part of a Homeowner’s Association?

Living in a homeowner’s association can have its pros and its cons, but the fact is that more and more condo, town-home, and other communities are bound together by an HOA. This usually means an annual fee for each homeowner.

Some master policies don’t provide adequate protection, so if a loss occurs that exceeds the policy limits, each homeowner in the association will share an equal part in the liability. In that case, you may be required to pay a share of hundreds or even thousands of dollars.

Located in a Flood Zone?

A house near a river or the beach is a dream for many. But if that dream home is located in a flood zone, your lender may require you to have flood insurance in addition to your standard homeowner’s insurance policy.

With the weather patterns in recent years, flood insurance might be a smart idea, even if you live nowhere near a flood zone. We specialize in all your personal insurance needs and can help you with your flood insurance. Because sometimes, when it rains, it pours.