Property Insurance

Obtaining Property Insurance

One of the essential steps in the home-buying process is securing property insurance. It's important to start the process early, well before closing day, to ensure everything is in place. Property insurance protects your investment by covering damage to the property, theft, and liability in case someone gets injured on your property.

Why Start Early?

Insurance providers need time to evaluate the property and provide you with a policy that fits your needs. Starting early helps prevent any delays in the closing process, especially if the property has unique features or potential challenges, such as age or outdated electrical systems.

Challenges with Older Homes

If the property you're purchasing is over 90 years old or contains knob and tube wiring, securing insurance may be more difficult. Insurance companies view these homes as higher risk due to the potential for outdated wiring, plumbing, or structural issues. Many insurers may refuse coverage or offer policies at higher rates, so it’s essential to be aware of these factors early in the process.

Steps to Take:

• Call Multiple Insurance Providers: Get quotes from a variety of companies to compare coverage and rates. Different providers may have different criteria, especially for older homes or properties with outdated systems.

• Provide Accurate Information: Be prepared to provide details about the age of the property, any renovations or upgrades, and any potential risks like knob and tube wiring.

• Plan for Upgrades: If you're purchasing an older home with insurance challenges, you may want to budget for potential upgrades to electrical or plumbing systems to make the home easier to insure.

By starting early and exploring your options, you can ensure you’re fully covered and ready for a smooth closing.