So, you’ve purchased a new home, but the deal has not closed yet. One of the next most important steps is to obtain Home Insurance for your new investment.
If you have a mortgage, your lawyer will need to your lawyer will need to forward proof of insurance to the mortgage company before they will release the funds for your purchase. You’ll want to shop around for the best coverage and prices, rather than settling on the company with which you are most familiar.
Before you make calls, gather as much information as you can about the home and property you are planning to insure.
Some Typical Questions Your Insurance Company Might Ask:
- How old is your home?
- How far is your home from the closest fire department?
- If in town, how far away is the nearest hydrant?
- What type of roofing material do you have and approximately how old is it?
- What type of water supply pipes do you have?
- What type of waste plumbing pipes do you have?
- What type of electrical wiring do you have?
- How old is the wiring?
- What size of electrical panel do you have (example: 60/100/200 amp)? If your panel is less than 100 amp, it can be hard to get coverage.
- Are there any known structural or environmental issues with the home?
- Has there been any known water damage due to flooding or leakage (example: roof or basement)?
- Are there any outstanding work orders, building permits, bylaw infractions or anything you feel the insurance company should know about?
Be 100 percent up front when getting a quote. That way, you will ensure that you are covered after you buy the home and need to make a claim.
Keep Your Insurance Provider in the Loop
Make sure to inform your insurance provider, if you do any improvements to the home. For example, let them know if you install:
- A new wood stove
- A pool (above or inground)
- A garage or deck
You’ll also want to call if you:
- Renovate a kitchen or bathroom
- Put on a new addition or in-law suite
- Finish the basement.
This isn’t an exhaustive list. Just remember that keeping your insurance company up-to-date about the condition of your home will ensure your coverage is valid, should you ever need it.
Getting insurance can be confusing and you may not know the answers or understand the questions they have for you. Feel free to contact me, with no obligation. I would be happy to help in any way I can.
Be sure to check out my other blogs for other building, selling or buying home articles. great places to start.