Construction
of the
house
If
you are
buying
in a seismically-active
region,
look for
newer homes
built to
current
codes,
or older
homes that
have been
bolted
to their
foundations.
They are
better
able to
withstand
earthquakes.
If you
plan to
live near
the Atlantic
or Gulf
coasts,
consider
a brick
home because
it is more
hurricane
resistant.
Age
of the
house
Older
homes sometimes
have features
such as
plaster
walls,
ceiling
molding
and wooden
floors
that could
be costly
to replace.
Such special
features
may raise
the cost
of insurance
slightly.
Make sure
you get
replacement
cost coverage
in your
insurance
policy
if it is
available.
Also, an
older home
that has
been updated
to comply
with current
building
codes is
typically
less expensive
to insure
than an
older home
that is
not up
to date.
Condition
of roof
and home
If
you are
considering
a “fixer
upper,”
you may
pay more
for insurance
until clear
improvements
are made.
In particular,
check out
the condition
of the
roof. A
new roof
in good
repair
will be
attractive
to insurers
and will
save you
money and
aggravation.
Plumbing,
heating
and electrical
systems
These
systems
can wear
out, become
unsafe
with age
or become
dated as
safer technologies
are introduced.
Recent
upgrades
make your
home safer
and less
likely
to suffer
fire or
water damage.
Safety
devices
Homes
equipped
with smoke,
fire and
burglary
alarm systems
that ring
an outside
service
may get
sizable
discounts.
Strong
doors,
dead-bolt
locks and
window
locks may
also reduce
insurance
costs.
Pool,
wood-burning
stove,
etc.
You
will need
higher
property
and liability
coverage
if you
are buying
a home
with these
features.
With a
pool, consider
getting
added protection,
such as
an umbrella
or excess
liability
policy.
Quality
and proximity
of the
fire
department
Homes
near a
fire station,
those with
a hydrant
close by
and those
located
in communities
with a
professional
rather
than volunteer
fire department
will cost
less to
insure.
Location,
location,
location
Homes
near the
coast can
be more
expensive
to insure,
because
of the
increased
risk of
wind, water
and hurricane
damage.
In many
states,
you will
pay the
first few
thousand
dollars
in damage
before
your insurance
kicks in.
You also
need to
think about
the threat
of floods
or earthquakes.
You will
need separate
insurance
for these
risks and
it can
be costly.
Also, around
the country,
there are
high risk
areas vulnerable
to hurricanes,
brush fires
or crime
that might
not qualify
for private
insurance.
To make
insurance
available,
there are
state-sponsored
Fair Access
to Insurance
Requirement
(FAIR)
plans.
FAIR plans,
however,
can be
expensive
and provide
less coverage.
One
should
consult
with a
qualified
insurance
professional
prior to
implementing
any insurance
strategies.
If
you are
a tax,
insurance,
financial
or real
estate
planning
professional
receiving
this newsletter,
please
call our
office
and introduce
yourself
to us. We
are always
seeking
to grow
our referral
network
and expose
more service
professionals
to our
client
base.
