Home Insurance Can Tip Your Purchase Scale

Attention all home buyers: Although location, condition and price are top-of-the-list items on your house hunting checklist, there are other factors to consider that should affect your purchase of Agoura Hills real estate – namely, insurance costs.

Knowing the high-risk indicators up front, could mean thousands of dollars in your pocket for other out-of-pocket expenses down the road.

You can change aesthetics of a home, but before you commit yourself to it, remember there are some fixed factors that affect your insurance rates – for better or for worse.

Roofing sturdy? If the roof is new (less than 25 years old) and it’s constructed of impact-resistant material, you could qualify for a discount if it’s in an area subject to hail or high winds. The amount of the discount varies but could be as high as 20%.

Plumbing flowing? This holds true for plumbing as well. If a home had unresolved problems in the past, insurance providers will be wary. Water leads to mold and that claim is very hard to remediate. If the home inspector reports leaky pipes, it might be wise to request additional information, or even upgrades, prior to purchase.

Electrical up to code? Unlike the plumbing and the roof, the electrical system doesn’t need to be replaced to qualify for a good insurance rating. But it does have to meet code; that means circuit breakers and no out-dated fuses.

Fire department close by? If the home is more than five miles from a fire station, your rates will likely start rising. They might jump by 20% to 240%, depending on the home’s distance from a station or hydrants.

How old is your new home? Discounts for a new home can be substantial – up to 30%. But old homes with ornate features can have high replacement costs to restore the home to its former state. Newer features are easier to locate and often cheaper to buy – because “they just don’t make them like they used to.”

Check out MSN real estate for more factors on your insurance rates. And be sure to discuss the details with your insurance agent and keep them in mind when you’re evaluating homes to buy.

ABOUT ME:

I live, work and play in Conejo Valley and specialize in Agoura Hills and Westlake Village real estate.

Where you live is more than a roof over your head. It should improve your quality of life – spiritually, emotionally and psychologically.

In my home and garden articles, you’ll find some great tips on how to make your house, not just a home, but a sanctuary.

Through my blog, I hope you’ll also gain some insight and find tips and resources that will help you navigate through the current market, whether you're buying or selling.

Have any tips to share? Please do so in the comments section or connect with me via: My website, Email, Facebook, Twitter, YouTube, or LinkedIn

Thanks for reading!