Insurance Items to Consider When Purchasing a New Home

Purchasing a new home can come with many unexpected surprises. The following list contains factors that can have either a positive or negative impact on your homeowners pricing:

  1. Age of Construction
  2. Age of Roof – Asphalt composite shingle roofs along with architectural wood shingle roofs tend to deteriorate over time. Insurance companies will look very closely at the age of roof when determining both rates and eligibility.
  3. Actual Cash Value Loss Settlement for Roofs – Some carriers will apply this endorsement for older roofs. Actual Cash Value is Replacement Cost minus depreciation.
  4. Type of Wiring – Some insurance carriers will not consider offering coverage for homes that contain knob  & tube wiring.
  5. Central Station Burglar & Fire Alarms – Alarms systems typically reduce your overall homeowners insurance price
  6. Percent Deductibles – Some insurance providers have percent deductibles for wind and hale. It is important to talk with your agent to understand how these will impact you in the event of a loss
  7. Vicious Animals – Some carriers will decline offering insurance in the event a homeowner has a vicious dog or a bread that may be considered high risk.

Talk with your agent about these factors. This will minimize surprises you may experience when purchasing homeowners insurance.

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