Purchasing a new home can be fun and exciting, it can also be fraught with fears, insecurities and too many things on your ‘to do’ list. Many people get all caught up in the excitement and forget one of the most important aspects of buying a new home–Insuring it!–then, in a panic, accept the first quote they receive, not understanding the basics of a home insurance policy.
Don’t be one of them.
Many things factor into your rates (age of home, location, fire protection class, distance from water, flood zones, etc.), so the day you start looking at homes, get a couple of insurance quotes on those you like the most.
Before we get into the specifics of insuring your new home, let’s look at a couple of things that may cause you problems in getting insurance.
#1 A Federal Pacific Electrical Box–many companies will not insure a home with a FPE breaker box so beware and if the home you’re interested in has one of these, make changing it out part of your negations.
#2 Outdated wiring, plumbing, AC & heating–Older homes must have had the wiring, plumbing and central air & heat units updated within the last 10-20 years depending on the company. Some companies will not insure a home with window units and space heaters are usually a great big no-no.
#3 In need of repairs–Some folks love a fixer-upper but these can be difficult to insure or may need to be insured differently than with a traditional home owner policy.
Now that you have an idea of what to look for when purchasing your home, let’s look at discounts available to help insure you get the best possible rates on your home insurance:
*New Home Discount *Hip or Partial Hip Roof *Security System Discount *Home/Auto Bundle (or agency companion policy) Discount. Some companies even offer a Non-Smoker discount so keep these in mind and ask questions of the agents when you’re getting quotes.
Knowing and understanding what a home (or mobile home) policy covers (and what the deductibles are!) is also an asset to new home buyers. A standard insurance policy covers Dwelling/Contents/Other Structures/Loss of Use and Property Liability.
Flood is always separate and important. Don’t let a realtor or finance company convince you any home is “not in a flood zone.” Every home in SW LA is in a flood zone. Yours might be in a “preferred” zone but that does not mean it will never flood. Flood rates for a home in a preferred zone run as low as $400 per year and so worth the peace of mind you’ll have knowing your home is protected.
Once you put an offer in on a home, things roll quickly along to the closing process so don’t put off getting quotes on insuring your new home.
While you’re at it, consider getting quotes on a term life policy to help protect your family from losing the home should you or your spouse die unexpectedly.
If you're in the need of a home, mobile home or life insurance policy give us a call! We'd love to help you out.
Until next time, take care and remember....Insuring your new home should be a priority on your 'to do' list when looking to purchase.
Tommy Curtis and Staff
Is an insurance agent with integrity and your best interest in mind. Call to speak directly to him.
Address: 509 7th Street
Lake Charles, LA 70601
Office Hours: M-F 9a - 5p (CST)