Find out if the home you are buying or building can be insured
Most of us don’t think that
much about insuring our homes – we plan our dream home’s construction
meticulously. We choose the perfect spot to build or buy. We put a lot of
effort into ensuring that the school system is up to great standards. However, insurance
should be one of the big considerations here. In fact, there are quite a few
homes that might be difficult, or even impossible, to insure. If that’s the
case for your dream home, you might find yourself in a rather difficult
position. What should you know? Here are some of the most difficult home types
to insure in the US.
1. Disaster-Prone Areas
Natural disasters are simply
a fact of life for many homeowners in the US. From Florida’s sunny coasts to
California’s wine country to the banks of the mighty Mississippi, floods,
hurricanes, earthquakes and other disasters hit with startling frequency. If
you’re buying or building a home in a disaster-prone area, expect to have a
tough time finding insurance, or at least insurance that you can afford. Taking
steps to protect your home (storm shutters for hurricane areas, or clearing
land in areas where forest fires are common) can help reduce your risk and your
2. Aging Homes
Older homes have a great
deal of appeal, but they can be very hard to insure, due to age and
architectural considerations. The more architecturally unique a home, the more
expensive repairs will be. The older a home, the greater the chance of
substantial, costly damage. You can cut your costs by investing in upgrades and modernization.
3. Vacation Homes
Owning a vacation home is a
dream for many of us, but they can be difficult to insure. That’s because a
vacation home is not a primary residence, so it’s left empty most of the year.
This means it’s at greater risk of deterioration, burglary, vandalism, storm
damage and more. Having neighbors keep an eye on your property throughout the
year and installing a security system and even water/flood sensors can help
mitigate your risk and the cost you’ll pay for insurance.
4. Homes with Pools and Trampolines
You want a home where your
kids can have fun outdoors. Adding a pool is one excellent way to do that. Even
putting a trampoline out in the yard can help. However, both of these examples
would increase your insurance costs. That’s because these items can attract
children from around the neighborhood, even when you’re not at home, increasing
the risk involved with insuring the property. Fencing your yard and locking the
gate when you leave can reduce your risks.
5. Homes with pets
Dogs might be man’s best
friends, but that doesn’t mean insurance companies love them. That’s
particularly true for certain breeds. Any breed known for unpredictability or
with a reputation for aggression or biting will raise your insurance rates
considerably. Some insurers will only cover your home if you put your beloved
pooch through obedience training.
6. Vacant Homes
Whether you’re investing or
flipping, buying vacant, foreclosed homes is a great deal. However, it also
opens you up to difficulties in the realm of insurance. Vacant homes are
magnets for vandals and thieves, and they can suffer significant damage without
someone to watch over them.
7. The Home’s Insurance History
You’ve found a great home.
It’s perfect for you and your family. However, it has a long history of
insurance claims. That can work against you. It might not be your fault, but
insurance companies do take a property’s history into account, because it can
predict future claims.
Consider your options
carefully when buying or building a home to make sure you’re able to get
affordable insurance coverage. Avante insurance offers many options and
discounts to home owners who plan ahead and make the right choices. Take a look at our services and contact us to answer all your questions.