So It’s Hard For You To Find Home Insurance: These Are The Reasons Why
When it comes to home insurance, some homeowners can get frustrated by high rates or even the lack of insurability. This is particularly true for those who like to buy older homes and fix them up. If you’re just starting out in this area of practice, then there are some things you need to know on why your house isn’t cutting it. It’s usually because of one (or God forbid all) of these reasons.
While it can certainly vary from carrier to carrier, a good rule of thumb is that companies will look at the past three years of claims history. They’re looking at number, cost, and cause. In other words, they want to know the number of claims that have been filed, the cost of each one (and altogether), and the cause of each. If a home is too claim-prone, you’re going to have a hard time getting it insured, at least at an affordable rate.
On The Roof
Who remembers the outdated dome stadium of the Minnesota Vikings and the accident it experienced a few years ago when presumably hundreds of pounds of snow crashed through the roof and onto the field? Luckily, the Vikings weren’t playing at home that week, or the results might have been tragic. Roofs are important to the safety and stability of a home, but far too often, they’re the last thing that a homeowner pays attention to. Typically, the home will need to have full or partial restorations no longer than 15 years apart. The longer it does without, the more of a threat it is to the entire structure.
Wiring / Electricity
Companies that offer home insurance want copper wiring to the point that it’s almost the only thing they will accept. This, along with an updated electrical verses fuse box with at least 100 amps will do more to set said carrier at ease. Aluminum and “Knob and Tube wiring” are also concerns of carriers. Before you purchase, have the wiring looked at by a professional electrician.
Fixing faulty plumbing can cost tens of thousands of dollars, depending on the severity of the problem. At that point, it’s very difficult for an insurance company to justify the risk as a claim is almost guaranteed. While updated plumbing is ideal, the key is that it works, and that a polybutylene pipe isn’t present. These are bluish or grayish in color and are highly faulty. Many were installed in homes between 1978-1995, so if updates have been made post-1995, you’re probably good to go.
You may love your pit bull, but watch out because a lot of carriers won’t cover them due to the inordinate rate of attacks and fatalities they’ve caused over the years. Find out what your insurer’s acceptable “dog breed” list is before moving forward with a pet purchase, especially when you’re moving in to a home.
Outdoor Action Equipment
If your home has trampolines, pools, or play sets, it will probably still qualify for a home insurance policy, but it could be with certain caveats. With pools, you usually need to have it properly fenced, and that’s an added cost. For trampolines, you may have to sign a liability exclusion form.
Don’t just assume that a home is automatically eligible for coverage. Insurance companies wouldn’t be in business very long, and they couldn’t help many people, if they took on proven high-risk cases time and time again. Ultimately, you’ll want to minimize the risks and avoid the likelihood of a claim. Insurance was designed for the curve balls life throws you; not the ones that you throw yourself.