Before Buying a Home: Insurance Questions Everyone Should Ask

Now just may be the best time ever to buy a home.  With market values and mortgage interest rates at incredible lows, it could be one of the best long-term investments you ever make. 

Before you buy that dream house, you will want to carefully consider all of the costs of purchasing and maintaining it over the years.  And the cost of insurance can be a significant factor in your decision to buy a particular home.  Here is a checklist of things to be considered:

• How far is the home from the nearest fire department and fire hydrant.  This will partially determine the cost of the insurance.
• If you're considering the purchase of an older home, have the plumbing and electrical systems checked out by a professional.  Older homes with outdated systems can be much more expensive to insure and even unsafe to live in.
• Exposure to large bodies of water, like the Pacific ocean.  If you're buying a home on the beach at the coast, it may be much more costly to insure. 
• Is the property located in a flood zone.  If it is, you will need to purchase flood insurance to satisfy the mortgagee.  Flood insurance costs can vary from as little as $119 per year up to thousands per year depending a number of factors.  It's critical to find this out as soon as possible. 
• You may want to consider earth quake coverage.  Neither earth quake or flood are covered under the standard home policy, but separate coverage can be bought to cover both of these risks. 
• Is the home well built and maintained.  If not, you may incur considerable expense in the future for repairs.  You may want to hire a professional home inspector.

To make sure you nail down the cost of insurance before you commit to a home purchase, I recommend an appointment with a professional insurance advisor.  This can be done in person or by phone.  To do the job right and give you an accurate quote, he/she will need some time to collect the necessary information.  If the home is located in a flood zone, he/she may also have to call the office of the city government responsible for determining flood zones. 

Our agency specializes in assisting home buyers secure the protection they need at prices they can afford.  To contact one of our protection specialists:

• Call (559) 802-4094,
• Go to our web site to give us information on your potential home purchase at:  Home Insurance Quote Form

Please take some time and view the video on the left from the Insurance Information Institute.

Have a prosperous New Year!

Warmest Regards,

Phil Oliver
Managing Partner
CIG Central Valley Insurance Agency