What To Expect When Insuring a Home

Written by on 2/23/2016 6:34 AM in , , , , . It has 0 Comments.

 

Whether you are buying your first home, a different home or shopping around for a new insurance provider:

-Insurance brokers will ask questions. Questions such as date of birth, occupation, previous insurance information are commonly asked. Trust that there is a reason you are being asked your date of birth (age discount), previous insurance (claims free discount). Other questions help determine the overall risk and underwriting of the potential policy.

-You will be asked questions you might not know. If you are purchasing a home, the realtor website typically does not provide all of the necessary details required by your insurance broker. More specifically, the updates of the home. They play a significant role in determining not only the cost of your insurance but the eligibility. Unless the roof was recently replaced and it is being used as a selling feature, you cannot find the dates for such things as: plumbing, roof, electrical and heat. Most companies require updates within 25 years. There are exceptions and that information is required to work with the companies to find the best coverage and policy premium. Since insurance is ever changing, the gauge and location of your oil tank can affect your insurance. If working with a realtor, as them to obtain the information for you. If private sale, confirm information with the current homeowner.

-Don’t be surprised at your replacement cost. Replacement cost is not the same as your purchase price. Your home may have cost you $150,000 but the cost to replace the home is $200,000. This is because your home’s replacement would include debris removal, new materials, labour, trade professionals to complete the electrical, plumbing, heating systems.

-Insurance will require photos/questionnaires. Current photos and questionnaires are needed to ensure the overall condition of a home and for installation for heat devices. As discussed in previous post, WETT inspections for wood devices are common requirements for insurance companies at the cost of the insured person. In some cases, the insurance company may decide to complete an inspection on your home. These are usually very detailed evaluations which check the replacement cost, potential losses and any issues with the home.

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