Being a first-time homebuyer can be a whirlwind, especially in today’s competitive market. Smith Brothers Homeowners Insurance Closing Services team specializes in helping homebuyers get the insurance coverage they need so they can close on their home quickly and have the right financial protection in place for their new asset.
Here are some tips clients may consider when preparing to buy their first home.
Start early
Although the process can vary, the sooner a homebuyer gets in touch with us, the sooner we can get them the coverage they need to be prepared and feel confident at close. This also helps them avoid a last-minute scramble to find premium affecting information they may not have readily available – like the age of the roof, or most recent repairs to electric and plumbing systems.
Liability risks
Common home features such as pools, firepits, and playground equipment can attract accidents, and thus increase a homeowner’s liability. They may decide these risks are worth it – many of us do when it comes to adding entertaining yet dangerous features to our homes – but it is also important to recognize these features may lead to higher insurance premiums.
Security features
Installing smart technology, such as water leak detection systems, fire alarms, and security cameras, could not only keep their home and families safe, but also lower premiums.
Hidden costs
Hidden costs can also affect a home’s affordability. For example, if a home is located in a flood zone, a homebuyer may need to purchase additional coverage they did not account for when creating their original budget. Additionally, some older homes were not built to modern building codes and may be costly to repair and insure.
Maintenance and weatherproofing
Properly maintaining one’s home is important not only for wellbeing and safety, but also for preventing costly damage and reducing perceived risk levels.
Upgrading the roof, installing storm shutters, trimming and removing trees and brush, and keeping the yard clear of debris and clutter can all contribute to keeping insurance premiums stable.
If a home falls into disrepair, a homeowner can be dropped by their insurance carrier and may have difficulty finding coverage without first making repairs.
If you have any questions or need further assistance, please feel free to reach out to our Director of Mortgage Broker Relations, Rich Rawson at RRawson@SmithBrothersUSA.com.