Home insurance policies are becoming more expensive, due to extreme weather, rising home values, and the increasing cost of home repairs. As insurance companies become more selective about who and what they will cover, there are a few things Chicago home buyers should know!
- Home age matters to insurance companies. Older homes have a higher risk of having outdated systems. An insurance company may require their own property inspection before granting coverage.
- Home condition matters to insurance companies. A home with deferred maintenance can mean a higher premium – or a demand for repairs by the insurance company.
- The age and condition of the roof affects your coverage. Asphalt roofs over 10 years old could get the stink eye from insurance companies. If the roof is 15 years old, and/or shows signs of shingle breakdown, the insurance company might reduce coverage, drop coverage, or demand a roof repair or replacement.
- Location. Homes located near public safety services, such as police stations, fire departments or fire hydrants, are seen as a lower risk to the insurance company. On the other hand, homes located in high traffic areas, or located in areas with higher crime rates, will see more expensive premiums.
- Materials. The quality of materials inside the home affect fire resistance, and also affect how expensive it would be to repair or rebuild the home.
- Unique features. Pools and trampolines are fun, but they are a liability headache for an insurance company.
There are proactive things you can do to reduce your insurance premium costs:
- Have a home inspection as part of your home buying due diligence. Make a plan to tackle any condition or repair issues.
- Maintain a good credit score. This affects your insurance premium rates, and can affect your ability to get coverage.
- Show financial stability with a good employment record, a steady payment history, etc.
- Bundle your homeowner’s insurance and car insurance policies together.
- Set your deductible for the highest amount you can reasonably afford, and keep the funds set aside.
StartingPoint Realty – serving Chicago Area home buyers since 2004!
When you’re preparing to buy a home, get expert help from StartingPoint Realty! We proudly serve home buyers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! Contact us for your free consultation!
Ryan Gable, Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@startingpointrealty.com
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