Insurance Considerations for New Home Buyers

inspector and homeowner walking through a home

Insurance Considerations for New Home Buyers

Consider these insurance factors before closing on a home.

If you are hunting for your first home, then you have a lot to consider.  One of the things that you must think about is how the property will influence your homeowners insurance costs.  Here’s are some of the insurance factors to consider before you decide to buy a home.

  • The Distance to the Nearest Fire Station

No matter what type of home you are looking at or where it is located, there is always a risk for a home fire.  This is why insurers will factor in how long it will take for local firefighters to arrive at the property in the event of a fire emergency.  The closer the property is to a fire station, the lower the risk for serious fire damages.  Naturally, this translates into cheaper insurance rates for the homeowner.

  • The Possibility of Wind Damage

Homes located in certain areas (such as tornado and hurricane-prone areas) face a higher risk for wind damage.  While standard home insurance policies will provide some coverage for wind damage, it may not be enough to address your risk completely.  As a result, you may need to invest in additional private or state-run insurance that is specifically designed to cover the damage caused by windstorms.  Securing this additional coverage comes at a cost, so make sure you consider this before closing on a home.

  • The Property’s Flooding Risk

All standard home insurance policies explicitly exclude coverage for flood damage.  This means that, if the home you are looking at is in an area of high flood-risk, then you would need to secure supplementary insurance through the National Flood Insurance Program.  Paying for this insurance on top of your regular homeowners insurance will result in considerable costs, so make sure you consider a property’s flood risk before you make an offer on the home.

Consider these things before closing on a home.  Do you have additional questions regarding your homeowners insurance?  If so, then contact the experts at Club Agency Insurance Brokerage in Garden City, New York.  Our dedicated team is eager to assist you with all your home coverage needs today.

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