When hunting houses, you no doubt consider candidates from several aspects, including their location and overall atmosphere. But what about hidden home insurance costs?
Examining a house for potential home insurance problems doesn't seem as glamorous as, say, reimagining one of the rooms as your man-cave or deciding where you want a walk-in closet. Still, you should be able to recognize the insurance risks your new house could pose and understand how they could influence your premiums.
Of course, when it comes to making a deal, you'll want to hire a professional to complete a home inspection to root out problems you might not see. But here are a few things that even amateurs can spot or at least ask about before reaching that point:
Roof damage
Holes, damaged tiles, sun-damage, or weeds all mean bad news when it comes to the house's covering. Old or damaged roofs can result in storm and water damage. In fact, the average claim for wind and hail—which most commonly cause roof damage—adds up to more than $7,300, according to the Insurance Information Institute (III).
Before you make an offer, examine the roof. Houses with new roofs or roofs made out of metal, steel, concrete, or tile will be most durable, and represent your best bet for avoiding costly claims and securing lower premiums.
Old pipes
Water damage causes a quarter of all home damage claims, and 90% of those claims come from outdated plumbing, the III says. When touring a house, ask about the latest plumbing update.
Plumbing systems 10 years or older could result in water damage claims, which cost about $7,200 on average. PVC and plastic pipes generally are used more frequently than copper and steel in new systems, so keep your eyes peeled for pipes that aren’t metal when you're touring the house.
Stripped wires
The average home fire claim adds up to more than $34,000, according to the III. Faulty wiring can spark a fire and bring the whole house down in flames. An inspection can determine the risk of fire due to old, overloaded, or stripped wires. But while you're on your walk-through, ask about the last time the electrical wiring was updated.
Carriers deem buildings with fuse boxes, ungrounded power outlets, or wiring older than 10 years to be more dangerous, which makes them more expensive to insure. A bonus? You could earn breaks on home insurance premiums for recently updated, efficient systems, and Energy Star appliances.
An outdated HVAC
The National Fire Protection Association lists faulty heating and air conditioning systems as the second most common cause of home fires in the United States. Newer systems are less likely to be overworked or clogged. Take a look at the HVAC system during the tour, if it looks old, consider that a potential setback. If it was updated recently, that could be a major perk.
Rickety stairs
Rickety stairs and uneven floorboards aren't just inconvenient; they also could injure someone and cause a pricey slip and fall liability lawsuit. While touring the house, look out for any liability risks in your potential home. Stairs without handrails, for example, could spark lead to legal action. The average claim for liability? More than $14,000. If there are any dangerous areas in the home, make sure they are secured before you move in. Other liability risks include pools and trampolines.
You can't eliminate all potential home insurance claims in the buying process. Nonetheless, you should pick a home that represents an amount of risk that you're comfortable taking on. The best course of action is to have a professional complete a home inspection, but you may be able to narrow your choices before then by watching for insurance risks. Such awareness can help you choose a home that you – and your home insurance provider – will love for a long time.
For more information visit https://homeownersinsurance.com
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