Your house is one of your most important investments, so be sure to protect it with your Denver Homeowners’ Insurance policy. Whoever invented the phrase "Catch-22" must have been thinking of homeowners' insurance. You have to have it to get a loan but the insurance company might not want to insure your home due to age or location or past claims. You might be worried about catastrophic losses caused by earthquakes or floods, but the insurance company considers those acts of God and if willing to cover these hazards, wants an ungodly sum or special rider to do so. If you use your insurance at all, you are on thin ice; if you use it multiple times, you are at risk of cancellation.
Because some companies have stopped writing policies in certain states or in certain areas, a homebuyer who needs insurance may need to contact a few companies to find one that is accepting new clients where their new house is located. For first time buyers, a good place to start looking for a carrier may be the company who carries their renter's insurance. Many times this company will offer coverage to current clients even if they are not offering it to new people.
Policyholders who have made a claim within the past three years are likely to be offered a policy on a new home if they stick with the same insurance company, but another company might turn them down. For multiple claims, the company could refuse to renew the policy, refuse coverage on a new home, or add a surcharge on the policy.
If you choose an older home that may have issues of not meeting modern code requirements, you may want to consider an upgrade rider that will update the home to meet modern codes in case of catastrophic or total loss.
So what does all this mean for homeowners, especially for new ones? First of all, when looking for a home, it's a wise move to ask your insurance provider whether there might be any issues getting insurance on it. If you're absolutely in love with the house, well, we all do crazy things for love. If there are several homes you like, it might be wise to consider the more insurable property.
Second, if you're looking at an older home where old systems might pose an insurance issue, consider your options. Do you have the resources to replace the roof or bring the electricity up to code within a short time frame? You can always try to negotiate with the seller for a price concession to cover part of the cost.
Third, you might consider buying a policy with a higher deductible. This will give you a lower premium but make you responsible for small incidents, like in situations where you will call the company if a tornado blows off your roof but not if a summer storm dislocates your downspout. Unless you have an unlucky streak with major claims, this approach should save you insurance dollars and keep your insurance company happy enough to keep you covered.
At The Bandy Team, we help new Denver homebuyers as well as sellers to sell a Denver property and we will work through the many issues that may arise. The Bandy Team is here to serve you.
If you are thinking about buying Denver Real Estate, let us help you find properties for sale in Lowry or homes for sale in Washington Park.
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Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows
720-466-3790
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