Buying a new home is exciting and can be overwhelming if you don’t know what questions to ask. You are looking at homes online and your realtor is setting up showings. Oh, and you have to move fast in the market today or the house of your dreams will be gone before you get a bid in on it. It is all happening very fast. You can get caught up in the process and then realize you don’t know the answers to the questions your insurance provider is asking.
Insurance companies are focused on very different details from your realtor. Insurance companies are looking at the insured value or replacements cost not the appraised value. Why is that different? An appraised value is what the home is worth on the market today. A replacement cost value is based on what an insurance company estimates it will cost to rebuild your house today if it burned to the ground. Typically your replacement cost is going to be higher than the appraised value.
If you are buying a brand new home built this year you already know the answers to all of the these questions. If it is not a new build then here are three questions you want to ask that your insurance agent is going to need to know. These questions can also lead to discounts on your new home policy.
Questions to Ask Before You Buy A Home
1. How old is the roof?
Roof age is a big deal when you start talking about insurance. The newer the better! Roof age impacts both the type of coverage you can get and the premium of your policy.
2. How old is the heating/cooling system?
Again the age of the heating and cooling system can impact your insurance premium.
Note: If you have a fireplace or woodstove you want to talk that over with your agent to make sure you have the proper coverage.
3. Have there been any plumbing updates?
We are not talking about cosmetic updates in a bathroom. We mean complete plumbing updates including pipes. While these are not done often it never hurts to ask and can lead to savings for you on your policy premium.
Buying a new home is so exciting and we want you to make sure you have the best coverage at the very best rate on that new home! If you are shopping for a new home and need an insurance quote click here.