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


7 Model Home Ideas To Steal For Your Home

You don't have to be in the market for a new home to tour model homes. In fact, model home complexes are a great place to get a few ideas for your existing home. Whether you're looking for ideas to renovate your kitchen and want to see the most current trends, are having a hard time deciding on paint colors and want to see how others are incorporating color into the home, or are simply looking for a little inspiration, you can find it here.

10 Key Problems to Look Out For and Fix in Your Home

Ignore some of these signs and you may end up with major issues. We tell you which are normal and which are cause for concern

5 Tips to Clean and Prepare Your Air Conditioner for Summer

Making it through the summer without a working air conditioning system isn't feasible in some parts of the country. Even if you live in a temperate climate, your AC system will make you and your family much more comfortable at home.

The Nightmare Next Door: What To Do When Your Neighbor Is a Nuisance

The animals that live in the house across the street bark incessantly. The people two doors down play their music so loud you now know all the lyrics to every Kendrick Lamar song ever written. And something, presumably a dog (you hope) keeps leaving presents on your lawn. Annoyances like these can make it unpleasant to live in your neighborhood. And, they can quickly escalate, becoming dangerous or even in need of legal intervention.

Creative Ways To Keep Your Home Cool Without Running Your Air Conditioning 24-7

Heat wave! Are you feeling it? Are you over it? Are you dreading this month's electric bill that will rival your monthly grocery budget? There are a few tricks that can help you keep cool at home without running your air conditioning all day.

Replacing Your Kitchen Range

With both an oven and a cooktop, the range is the centerpiece for cooking in the Kitchen.

How to Upkeep Your Home So Neighbors Are In Awe

Homeowners are responsible for the quality of their home with the maintenance and care that they provide for the building throughout the year. Every home requires a specific amount of upkeep to ensure that it maintains its value and has a high level of appeal. To keep your neighbors in awe of your home, there are a few important steps to take to allow it to stand out in the local area.

7 Rules for Choosing The Right Area Rug

You just moved into your new home. You've purchased the perfect furniture and accessories. You even found the perfect area rug to add to your hardwood floors, but you're totally stumped on which size to buy.

Wall Mounting (Hanging) a Flatscreen TV

Wall mounting your new flatscreen TV not only looks great but also saves space.

Things to Consider When Replacing Your Front Door

Your front door is one of the most functional, visible, and important elements in your home. If you're looking for a home improvement project that can boost curb appeal, improve security, and add style to your space, replacing your front door delivers an impressive return on investment.

See More Articles