Give some thought to home owners insurance BEFORE you buy a home!

This post from RIS Media with information provided by the Insurance Information Institute, is truly educational. Homeowners insurance is an often overlooked detail in the home buying process, usually only considered in passing as relates to its inclusion in monthly mortgage payments.

As a Realtor, and indeed a fellow home owner I can assure you, homeowners insurance is MUCH more important than that.

The tips provided below attempt to cover a wide range of possibilities in various climates and for assorted features of the home. I’ve inserted Editors Notes where appropriate, for folks buying a home here in Arizona, because insurance safeguards against unpredictibility and heat is Arizona’s only certainty.

7 Insurance Factors to Consider When House Hunting

If you plan to buy a house, you’ll also need to purchase homeowners insurance in the event that the unforeseen happens. Coverage can add a significant amount to the overall cost of homeownership, and it pays to keep in mind that certain features of a home can affect the price and availability of insurance. To help you save money and ensure that you’re properly protected, the Insurance Information Institute offers some factors to consider when house hunting:

1. Quality and location of the fire department.
Houses that are located near highly rated, permanently staffed fire departments usually cost less to insure. This also holds true for homes that have a hydrant nearby.

Editors Note: a number of Arizona homes are located in what is classified as County Islands. These are unincorporated regions within the boundaries or on the outskirts of a town or city, that are not routinely provided city services such as fire and police departments. You might pay separately for these services, either public or private, or there may be an agreement in place with the city. Either way, if you purchase a property in an area designated as a County Island, it is your responsibility to arrange for these services in advance.

2. Proximity to a coastline.
Houses located on or near the coast will generally cost more to insure than those further inland. They’ll also likely require a separate hurricane or windstorm rider, policy or deductible. In some coastal communities, private homeowners insurance coverage may not be readily available. Instead, you may need to purchase insurance through a state-run insurance program.

Editors Note: You wouldn’t think of Arizona as being in danger of hurricanes or windstorms but in fact our Monsoon, during late Summer, often produces heavy wind, dust storms, excessive rains, hail and flash flooding. Believe it or not, weather plays a huge part in insurance claims in the Southwest. Flood insurance in some areas is a requirement, and in other regions is at the very least, advisable.

3. Age of the home.
A stately, older home can be quite beautiful, but ornate features like plaster walls, ceiling molding and wooden floors may be costly to replace and can raise the cost of insurance. And plumbing and electrical systems can become unsafe with age and lack of maintenance. If you’re considering buying an older home, find out how much it’ll cost to update these features and factor that into the cost of ownership.

Editors Note: Urban sprawl is a relatively new concept in Arizona. An ‘older home’ to local home buyers is considered to be something that was built in the 70’s. There are however, several designated historic districts in Phoenix and some surrounding suburbs. You would be wise to investigate the ‘historic’ label when considering replacement value of homes in these districts.

4. Condition of the roof.
A new roof matters to insurers and keeps you and your family safer. Make sure to check the roof’s condition. Depending on the type of roof and whether or not it’s made with fire- and/or hail-resistant materials, you may even qualify for an insurance discount.

Editors Note: Arizona’s tile roofs might look indestructible but tile is somewhat fragile and cracks fairly easily. Actually though, it is the underlayment that you need to be concerned about. A thorough home inspection will include no only a visual of the tile surface for cracks, but inspection of the roof from within the attic.

5. Quality of construction.
Find out whether the house has been updated to comply with current building codes. Homes well built by careful craftsmen and those constructed to meet modern engineering-based building codes are likely to better withstand natural disasters.

6. Risk of flooding.
Damage from flooding isn’t covered by standard home insurance policies. If you’re buying a home in an area at risk from flooding, you’ll need to purchase separate flood insurance, which is available from the federal government’s National Flood Insurance Program (NFIP) and from a few specialty insurers.

Editors Note: Flooding is a real concern in Arizona. Long stretches of dry weather leave the ground parched, hard and impermeable. As a matter of fact flooding is almost a given. Proper drainage around your home and in your yard is crucial to avoid flood damage. Inadequate drainage could be considered by your insurance company to be deferred home maintenance, and it is possible that your claim may be denied.

7. Swimming pool or other special features.
If the house has a swimming pool, hot tub or other special feature, you’ll likely need more liability insurance. You may also want to consider purchasing an umbrella liability policy to provide added protection in the event that someone gets injured on your property and decides to sue you.

Editors Note: A significant percentage of homes in the Greater Phoenix Valley have pools. A pool adds to your insurance’s price tag in more than one way. Not only will your home owner’s policy need to include coverage for a swimming pool (with additional outlay for a diving pool), but it is highly advisable to contemplate the above mentioned liability policy as well.

The Insurance Information Institute also emphasizes the importance of getting a home inspection before buying a house. For more information on home insurance, visit iii.org. In addition to tips like these, the Insurance Information Institute offers plenty of ways your can save money on homeowner’s insurance.