article

Home Insurance 101: The Fundamentals of Home Quality

By Ryan Hanley via Realty Times

bluehammer

Buying a home represents one of the biggest purchases that an individual can make in his or her lifetime. As such, the decision should not be taken lightly, and you'll want to review many factors as you search for your dream residence.

The U.S. Census Bureau reported 501,000 homes were sold in the United States last year, up from 437,000 homes one year earlier. Furthermore, the U.S. economy continues to rebound from the Great Recession. This means the number of homebuyers may increase nationwide over the next few years, leading to increased competition among homebuyers.

Ultimately, an informed homebuyer is better equipped to make the right decision about a residence and whether this house will fulfill his or her personal needs. With the right information at his or her disposal, a homebuyer should have no trouble insuring his or her residence as well.

Home insurance likely is a requirement if you want to obtain a mortgage. However, there are numerous factors that may impact your ability to receive a favorable premium for your home insurance, along with your ability to insure your house altogether.

The key factors that may impact your home insurance premium and/or your ability to insure your house include:

1. A Home's Location

Location represents an important consideration as you explore the housing market and will affect your home insurance premium.

For example, home insurance premiums will vary for homeowners in Florida and California, respectively, due to the fact the climates in these states create different risks for homeowners.

Sperling's Best Places ranks several Florida regions among the most likely to be affected by a major hurricane in the near future. Comparatively, wildfires are problematic in California, and the State of California reported these incidents have impacted more than 150,000 acres of land in the Golden State thus far in 2016.

Home insurance safeguards your house, personal property and more. Therefore, if you live in a region that is susceptible to hurricanes, wildfires or other risks, you may be forced to pay a higher premium to insure your house—or you may need to conduct a broad search to find an insurer for your residence.

bluehammer

2. Construction of Your Home

How your home is built might affect your home insurance premium. In fact, if your house consists of older materials, you may need to update your residence so you can insure it.

In addition, many factors may impact the home insurance premium for an older residence, including:

  • Outdated Wiring - Knob-and-tube wiring may be more exposed than wiring that is used in modern homes, creating additional fire dangers.
  • Galvanized Steel Pipes for Plumbing - Older homes often feature galvanized steel pipes that could rust, which may lead to leaks and flooding.
  • Storm-Sensitive Roof - An older roof will consist of older materials, which may make the roof more susceptible to hail, wind or other damage.

Take a close look at a residence's construction before you make your purchase decision. By doing so, you'll be able to determine whether home updates are needed, along with how the home's construction could affect your home insurance premium and/or your ability to insure the residence.

3. Home Replacement Costs

If you buy a home today, the value of your residence may change over the next month, year or decade.

The real estate market fluctuates constantly, and as such, what your home is worth now is likely to change soon. As a result, using the price that you paid for your house to determine the costs to replace your residence is insufficient.

Instead, you'll need a professional home appraisal to determine what it would cost to replace your residence. After this appraisal is completed, you'll be able to determine the proper home replacement costs and insure your house accordingly.

4. Flood Insurance

Believe it or not, a standard home insurance policy does not cover the damage associated with floods. On the other hand, you'll need flood insurance to supplement your home insurance if your house is located in a flood zone.

Also, it is important to note that your home does not necessarily need to be located in a flood zone to suffer damage due to a flood.

Even a few inches of water can cause long-lasting mold problems and flood damage in a home. If you purchase flood insurance - even if you're outside of a flood zone - you'll be protected if flooding occurs.

5. Potential Liability Hazards

Your home may have potential liability hazards that can raise your home insurance premium or make it difficult for you to insure your residence.

Some of the most common potential liability hazards include:

  • Animals - If you own a large dog or other types of animals, you'll need to account for each pet when you evaluate your home insurance options.
  • Swimming Pool - A swimming pool is a must for many homebuyers, but a pool could impact your home insurance premium.
  • Trampoline - Jumping on a trampoline offers a fun, exciting activity for kids and adults alike, but a trampoline may require you to pay more for your home insurance premium.

Consider your home insurance options as you search for the perfect residence, and you may be able to improve your chances of finding the ideal house in no time at all.

Want to estimate your home improvement costs before talking with a contractor? Claim your home for free with bluehammer to estimate costs, secure your home inventory and learn more about your home.

* THIS REPORT IS AN OPINION THAT MAY BE INACCURATE AND IS PROVIDED SOLELY AS AN INFORMATIONAL TOOL NOT DESIGNED TO PROVIDE DEFINITIVE ANSWERS. ALL ELEMENTS ARE OFFERED "AS IS" AND BLUEBOOK EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES, REPRESENTATIONS, AND GUARANTEES OF ANY NATURE, EXPRESS, IMPLIED OR OTHERWISE, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABLITILY, NONINFRINGEMENT, TITLE, QUIET ENJOYMENT, ACCURACY, OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL BLUEBOOK (OR THEIR SUPPLIERS) BE LIABLE FOR ANY GENERAL, DIRECT, SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND, OR ANY DAMAGES WHATSOEVER (INCLUDING WITHOUT LIMITATION, THOSE RESULTING FROM USE OF THE PRODUCT, INCLUDING : (1) RELIANCE ON THE MATERIALS PRESENTED, (2) COSTS OF REPLACEMENT GOODS, (3) LOSS OF USE, DATA OR PROFITS, (4) DELAYS OR BUSINESS INTERRUPTIONS, (5) AND ANY THEORY OF LIABILITY, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF INFORMATION) WHETHER OR NOT BLUEBOOK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Know what you should pay for your home improvement projects with bluehammer.Claim your home. It's free!

Popular


Nontraditional Places to Use Pendant Lights

When you picture pendant lights, where do you see them in a house? Close your eyes and imagine it.

Replacing Your Water Heater

Hot water is a luxury we all take for granted until it goes cold.

8 Laundry Rooms That'll Make You Want To Fluff And Fold

Let's face it. Laundry is no fun. In fact, it's often counted among our most hated chores. But since running around in stinky, soiled clothes is not an option for most of us, it's gotta get done.

Chimney Liners: Does Your Home Have One - Do You Even Need One?

You rely on your chimney being safe. Whether you use your fireplace for wood-burning fires, you have a furnace that vents through your chimney, you utilize a wood stove or gas insert, your chimney needs to be able to handle heat and sparks without allowing damage to your home. Stone or brick chimneys can be made safer with a flue lining that helps to move heat and gases up and out of your home.

Home Repairs VS Improvements: No Clear Answer

Question: I am having trouble figuring out what constitutes an improvement and what is ordinary maintenance. Thinking ahead to selling my house in a few years when the market rebounds, I have been keeping accurate records so that I can deduct these costs to lower the capital gains. Recently, I remodeled a bathroom, replaced a deck, replaced and upgraded the spa filter and motor, replaced the front door with a fiberglass model guaranteed to last more than my lifetime, and replaced a roof and rain gutters. Which of these can I safely regard as improvements, and which are just maintenance?

Lawn Care For The Fall: Essential Tips to Follow

All summer you've been watering, cutting, trimming and feeding your yard in the hopes of having the greenest plot of land in the neighborhood. So what should you do to get your lawn in shape for the cool breezes of autumn? These six steps will help you get a head start on the colder weather.

Can't Sleep? Why Your House Might Be To Blame And What You Can Do About It

Not being able to get sufficient sleep isn't just annoying. Beyond making you grouchy and causing you to yawn all day, it can threaten your immune system, impact your memory, and injure your back. There are a number of potential reasons for your sleeping issues, but your house probably isn't helping. With a few fixes, you may be sleeping soundly in no time.

Which is Best: Freezer on the Side, Top, or Bottom?

Most homes don't come with a refrigerator-freezer, so that may be the first item you purchase for delivery after buying your home. But where do you start?

Remodeling Your Outdoor Patio On A Budget

Creating and sticking to a home improvement project's budget is about as easy and comfortable as pulling teeth. But when it comes to a task as exciting as an outdoor space remodel, it's necessary to think and talk about the budget before taking any further steps.

Double up! Stylish Solutions For Shared Bedroom Spaces

Fitting multiple kids in a house can be challenging, and when they have to double - or tripl - up (or more!) in one room, style can take a hit.

See More Articles