Buying a first home is an exciting and emotional rollercoaster. Bidding against other buyers, some deals fall through, some homes don’t live up to expectations – it can take a toll the buyer. With all you have to think about, we do have one more thing to add to your list of things to check, and it’s a pretty important one.
Will your new home cost an arm-and-a-leg to insure it?
This is one of the things that most new home buyers don’t consider – they don’t think about the ramifications different features of their house will have on their insurance costs.
Here are a few parts of your future home that will increase your insurance bill:
Is the wiring updated?
Old, outdated wiring pose fire hazards and risks and will cost more to insure.
How old is the roof?
When buying an older home, ask how old the roof is. Has it been updated in the last 10 years? A 20 year old roof is considered “old” and will cost more to insure.
How up-to-date are the furnace and plumbing system?
The more up-to-date the furnace and plumbing are, the less it will cost to insure.
Where is the home located?
The home’s proximity to fire hydrants and a fire station play a part in insurance costs. If the home is located in the middle of nowhere, it’s more likely that the insurance will be higher because it’s far from easy access to water. The farther from water, the more at risk the home is to potential fire damage.
What’s do all new home buyers need to know?
Consider the cost of insurance when buying a new home or an older home.
A new home is going to cost $400-500 a year to insure, while an older home may cost around $700-1,000 per year to insure. If some of the things mentioned above, like a roof, plumbing and wiring, can be updated or replace prior to you completing the purchase and moving in, ask for it!
Updates can save you money on your home insurance for another 10-20 years.