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Insurance Matters When Purchasing A New Home

There are many important things to consider when shopping around for your dream home. The location, layout of the house, number of bedrooms and bathrooms, the overall design and need for upgrades are all important things to consider. However, when it comes down to insurance, some home features outweigh others.

One major factor to consider is how old the property is. Older homes can be challenging to insure due to features like knob and tube wiring, which are unable to accommodate today’s electrical load, making them a fire hazard. Another issue is that older wiring is often not compatible with today’s fixtures. Some insurers will provide temporary coverage while the homeowners are replacing the old wiring, but many insurers are wary of providing coverage.

Another issue is buried oil tanks. Even if an oil tank is no longer in use and filled with sand, the potential for surrounding contamination from any leaking oil is too great a risk for insurers to even consider offering coverage. Complete removal of the oil tank and remediation of the surrounding soil is necessary.

Unmaintained drainage systems, including gutters and downspouts can be a huge threat when it comes to water damage. With more people renovating basements, insurance costs are higher when flooding and water leaks occur. Failed waterproofing in older home can also raise issues, as it may represent a long-standing problem, not a sudden and accidental incident that insurance normally would cover.

In order to protect your future home, learn more about the property you’re purchasing and get in touch with your broker or company agent to find the right insurance fit for your prospective home.