When buying a home, insurance is one of those things that is often overlooked until closing. In retrospect, if you were to think back on a home you purchased in the past, you may remember you totally forgot about purchasing homeowners insurance until you were prodded by the bank or the title company. In reality, insurance plays a critical part in the house buying process and should be uppermost in your thoughts from the moment you begin house hunting. If you’re looking to buy a new home, these tips can explain the importance of the buying process as it relates to homeowners insurance.
Contact an Insurance Agent Before House Hunting
Before you begin shopping for homes, contact https://www.texasquotes.com to get recommendations about geographic locations. Some locations may be in flood plains, frequented by hurricanes or in areas of town with higher crime statistics that could increase homeowners insurance premiums.
Discuss with your agent whether multi-policy discounts would apply if you already have a policy for a car, boat etc. You might qualify for discounts on homeowners insurance.
The House Hunting Process
As you begin your search for the ideal home, remember to take into consideration the physical condition of the home, construction qualities, location, proximity to a fire hydrant or fire station and the size. All of these factors may affect costs, home choices and available homeowners insurance policies in Texas.
Typically, older homes have higher insurance premiums than newer homes, which have newer construction and meet codes. Ornate homes frequently have beautiful wooden floors, decorative ceiling molding and plaster walls that can be very expensive to replace if they should become damaged. Replacing old electrical and plumbing systems is also very costly if they become unsafe as they age.
Coastline Insurance Coverage
Your dream may be to settle in a coastal community of Texas, but you should give it careful consideration. Texas has experienced a number of hurricanes. At the very least, homeowners may have hail or windstorm damage, while others may lose their home entirely from a hurricane.
Most homeowners insurance policies cover some windstorm losses. However, if you’re considering the purchase of a new home on the coast, you’re more than likely going to need to buy hurricane insurance, which is separate rider and costly.
Loss History Reports
When you’re seriously considering writing an offer on a home, it’s a good idea to ask the homeowner for their loss history insurance report.
Reports generally show the last five years of insurance claims on a home. This alerts the buyer to any repairs that may have been made recently. It could also save the new buyer money on a homeowners insurance policy if for example, the roof was just replaced or the household wiring was updated.
Standard homeowners insurance policies in Texas and many other regions do not include coverage for flooding. If you’re considering the purchase of a home in a high-risk flood plain, it’s recommended that you discuss flood coverage costs with your agent or consider a more suitable location for house hunting.
Anymore, smart home buyers hire a home inspector to evaluate the condition of the house to check plumbing and electrical systems, water heaters, septic tanks and septic fields etc.
Knowing what doesn’t work or may need replacing is invaluable to the buyer and may be used as a bargaining chip when making an offer. Insurance companies in Texas may also be especially interested in these results when considering homeowners insurance coverage.
Once you’ve located a couple of homes that you’re interested in purchasing, sit down and discuss insurance estimates with your agent. If you’re new to the Texas area, your agent may have appropriate suggestions for comprehensive homeowners insurance coverage in Texas.