Congratulations, you’ve made the decision to start shopping for a new home. You’ve likely thought of a few people to contact for help along the way. Realtor? Check. Loan officer? Check. But what about your insurance agent? They’re a critical player in the home buying process, too. Why? Because some homes cost significantly more than others, which can, in turn, drive up your monthly house payment. In other cases, there may be needed repairs before you can get coverage.
Your agent may be one of the last people you think you need to consult with when shopping for a home. But it’s someone you’ll want to call earlier in the home buying process than you may think. Here are some types of properties that can be costly to insure. You’ll want your insurance agent by your side for these:
Bank-owned properties. Distressed homes or bank-owned properties can make for great deals. However, they also can bring a number of issues, such as peeling paint, a leaky roof or a crumbling patio.
Homes with safety issues. Some homes have safety concerns, such as stairs and steps without handrails or a lack of fencing around swimming pools.
Older homes. Older homes may be quaint and charming, but if they haven’t been updated, the older heating, cooling and wiring systems may not be up to modern construction code, and that may draw up a red flag for concern.