Insurance companies get more skittish by the year, and they’re dropping homeowners. Don’t buy a home only to discover that some old leaky pipe may make your place too costly to insure.
Admittedly, insurance doesn’t top the list of considerations in the hunt for a new home. It’s not as if buyers spend hours ogling nifty premiums on the home and garden channels.
But just keep in mind that perky woman from the insurance commercial and the mantra she chimes: “Isn’t getting discounts great?! … Yes!”
Bone up on the insurance breaks now — when choosing a home — and it could mean thousands of dollars pocketed every year for use on the fun projects down the road. Often, things about the home itself can affect your insurance rates — factors that are costly, if not impossible, to change later. (Bing: Find an independent insurance agent)
Below, experts outline 10 factors that make the biggest impact. Study up on these, discuss the details with your insurance agent and keep them in mind when you’re evaluating homes to buy.
1. Is the area susceptible to hurricanes, mudslides, wildfires or other natural disasters?
Natural disasters have become so costly that many large insurers now refuse to provide homeowners with coverage in certain high-risk areas. Buy within a half-mile of brush in wildfire-prone California, for example, and you may be forced to shop smaller, high-risk insurers, which might charge three times more, independent agents say.
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