One of the items rarely factored into the cost of buying new insurance is the cost of insurance to protect the home and your family from potential catastrophes.
If you are looking for a home in the Denver or Arvada area, here is a list of items you should keep in mind as it relates to insurance and purchasing a new home:
1. Calculate the cost of the insurance into your budget. The cost will depend upon the area you live and can vary dramatically depending upon the construction year and type for your home.
2. Fire Department. How close is the fire department to the home? Is is a paid fire department or volunteer? The answers to these questions will have a large influence on your insurance premiums.
3. Is the home well built and well maintained? Homeowners insurance is designed to protect you from “sudden and accidental” incidents that happen at the home. So something like a slow water leak and the damage it causes may not be covered by your insurance policy.
4. Is the home in an area where you will need to purchase additional insurance coverage? It’s important to check if you live on a flood plain, seismic activity, or prone to high winds. If so, you may need to purchase a flood or earthquake insurance policy to protect the home.
5. Ask the current homeowner for a copy of the claims history. Find out if there are have been prior insurance claims on the home and what they have been for.
Additionally, the Insurance Information Institute released the following video the provides some additional information in regards to purchasing insurance on a new home.
Also, you can always give our office a call and we will be happy to assist you with multiple insurance quotes and options.