Insurance for a new home

There are few things in life as stressful and exciting as buying a new home. The search for that amazing home in a great neighborhood can be super fun. Researching the schools and what the taxes are be may be less fun. Picking a paint color and what kind of flooring to put in may test your relationship a bit. Kids fighting over which bedroom is another thing to sort out. There are an endless number of things to figure out when you buy a home. One of the important things to consider is Homeowners Insurance. Yay, this is way better than planning a party, think about all the great coverage to decide on! Settle down, yes you can get water backup coverage on the new home!
Now what should you know before you buy the house of your dreams? What might impact your home insurance?  A very important thing to find out about is prior insurance claims. Most people don’t even think about this as being a problem. If you had your home inspected and the inspector says everything looks good then there shouldn’t be an issue right? Wrong! Claims that the prior owner had on the home can impact your ability to buy insurance and it can impact the cost you pay for insurance. If the prior owner had a water claim some companies consider this an issue inherent with the home, not the person living there. If the prior owner had multiple claims related to the pipes or anything else you might have a hard time getting coverage. Insurance companies are very cautious and they don’t want to take on a risk that might quickly have a claim after insuring the property.
That's why it is important to make sure you ask about any claims and that in your disclosures they list any prior claims. It is also very helpful to get a letter from their insurance company explaining what the cause of the claim was and how it was remedied. This will be the one time you have the opportunity to get this information. If you don't get it now you will never get it.
Location, location, location! Isn’t that what realtors always say? It’s about where you are buying more than what you are buying. Well, the same can be said for insurance. In the last year insurance companies have made it much harder to write a policy for any home located near native growing brush areas. If you are looking at a home with an amazing view and just open land behind you, it will be a challenge to find home insurance. Most companies I work with now require a minimum of 500 feet from any native growing brush areas. So, if you are looking at an exterior home you might want to work on your insurance sooner rather than later. Don’t wait until the last minute, you might need to call several insurance agents to find one company that will cover the property. And, expect to pay more when you have fewer options.
I did insurance for one couple who bought a beautiful home. It looked like it had been recently remodeled and was ready to be moved into. Well, when I ran the loss history on the home there was a huge claim that had recently been paid out. Come to find out an elderly person had died in the home and it was some time before her body was discovered. So, the claim was for clean up of the property. Floors had been replaced, walls had been painted, air ducts had been scrubbed. Unfortunately, because of the large amount paid out on the claim the new buyer had to pay additional premiums for their insurance. I tried to explain to the company that someone dying in the home was not a continuous risk to the property. But, without any proof why the claim was paid the customers were stuck.  
Make sure you get any claims information on the home before you close escrow on the property. Don't wait until the last minute to insure the house. It's easy to future date the insurance policy and it saves you any stress if you run into any problems along thew way.
​Call me when you go into escrow on your dream home. 951-395-0754