If you’re in the process of searching for your dream home, congratulations! Buying a home is a significant milestone. But before you sign the papers and start packing boxes, it’s important to consider factors that can influence your homeowners insurance rates—or even your ability to get coverage at all. Here are a few key things to keep in mind as you house-hunt:
Age and Condition of the Roof

One of the first things insurers look at when evaluating a home is the condition and age of the roof. A new roof can not only enhance the safety and value of your home, but it can also lead to lower insurance premiums. Roofs that are 20 years or older, on the other hand, may not qualify for replacement cost coverage. Instead, they might only be eligible for actual cash value coverage, which factors in depreciation. If you’re buying a home with an older roof, be prepared for higher rates—or for the need to replace the roof soon after you move in.
Electrical System

Does your potential new home still have an old-fashioned electrical system, like knob-and-tube wiring? Many older homes do, but it can be a red flag for insurance companies. In fact, many insurers will require you to modernize your electrical system within a certain number of days after purchase. This is because outdated systems can pose fire hazards or lead to other electrical issues, which increases risk for both you and your insurance. Be sure to factor in the cost and logistics of upgrading the electrical system before you make an offer.
Trees Around the Property

Large, overgrown, or dead trees can add charm to a property, but they also pose risks. Trees with overhanging branches, deep root systems near your home’s foundation, or those too close to power lines can be a liability. Falling limbs can cause significant damage during storms, and root systems can compromise the structural integrity of your home. Insurers may factor this risk into your rates, so be sure to assess the condition of the trees around the property and plan for trimming or removal if necessary.
Property Loss History (CLUE Report)

When buying a home, you don’t just need to know about its current condition—you should also understand its history. A CLUE (Comprehensive Loss Underwriting Exchange) report provides details on any insurance claims made on the property within the last seven years. This report can reveal if the home has experienced major damage, such as a large water leak or fire. While a history of claims doesn’t automatically mean you shouldn’t buy the home, it could impact the cost or availability of insurance coverage. You can request the CLUE report from the seller to get this valuable information before making your final decision.
Why These Factors Matter
Insurance companies assess the risk of covering a property, and that risk is reflected in your premiums. Understanding these factors before you purchase a home can help you avoid unexpected costs and ensure you’re making a well-informed decision. The last thing you want is to move into your dream home only to discover that your insurance rates are higher than anticipated—or worse, that you can’t get coverage at all.
If you’re preparing to buy a home and want to ensure your insurance needs are met, don’t hesitate to reach out. We're happy to help you navigate the complexities of homeowners insurance and make sure you’re fully covered for whatever life may throw your way!
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