5 Home Risks to Consider When Buying A Home

Even if you have had some home purchases under your belt, updates or new additions to your home can affect your insurance costs or your likelihood of filing a claim.

A couple things to consider when buying a home are listed below, including the inspection, which may help you take into consideration the potential danger and expenses associated with home insurance coverage. Let's begin.

1. Location-based risks.

There are some risks associated with homes' positions because of fire and police accessibility, natural disasters, and other weather-related damage that are more likely to happen in certain areas. See if the location you're considering for a home happens to reside in an area where there are many risks.

• In a flood zone
• Near a fire station or police station
• On or near an earthquake fault line
• Impacted by health risks like mold or radon issues

If you live on the coast or in a flood zone, make sure you're covered with separate flood insurance. Similarly, if you live in an earthquake zone, consider a separate earthquake endorsement since earthquake losses are not covered under typical homeowners' insurance. Talk to an insurance agent about common home insurance claims so you can determine which kinds of insurance are needed for your next home.

2. Age of home risks.

If you're considering purchasing an old home, it is essential for you to pay attention to things during the home inspection and ask lots of questions. Many older homes with original roofs, windows, plumbing and electrical fixtures may not meet today's standards and codes. In the event of a house fire, houses with unique characteristics may be hard or expensive to replace. In the general case, as your place of residence ages, the price of insurance will increase.

• The EPA barred asbestos use in homes as of 1989. It is still commonly found in homes built or renovated before the 1990s.
• Lead-based paint is still commonly found in buildings built before 1978.
• Homes built between the 1890s and early 1940s frequently utilize electrical service that is unable to cope efficiently with current demands.

Older homes are more likely to suffer from structural problems or have pests. A home inspection can help track the structural integrity of an older home.

3. Age and condition of home appliances.

When you're relocating, you may have overlooked your own home appliance budget, especially if you're buying your first house. Replacing major appliances like water heaters, furnaces, and air conditioners can be costly, as is replacing typical appliances like the washing machine, dryer, dishwasher, water softener, or humidifier.

During your home inspection, obtain expert advice on the condition of appliances as they get older. It may be worthwhile to upgrade a few of the appliances you're considering buying to more energy-efficient and safe options. Keep in mind that, home appliance failure is not typically covered by your home insurance and will require an additional Equipment Breakdown endorsement on your home insurance.

4. Higher-risk entertainment.

Backyard features like swimming pools, hot tubs, and trampolines certainly make your place a fun place to entertain. However, have you considered the cost involved with higher-risk backyard entertainment features? When you are in the midst of the process of searching for a new home, you might want to contemplate your homeowner’s insurance premium to see if it's a good fit for you and your price range. Backyard swimming pools and trampolines that haven't been enclosed may cause your insurer to decline to cover your risk.

5. Not having enough home insurance.

It may be a little weird, but not having sufficient dwelling insurance coverage can result in a great deal of financial losses in the event of your house or building being damaged. How do you make sure you've got the greatest amount of coverage for your needs?

To begin, view your dwelling insurance plan and call your agent with any questions you've got. Your agent can walk you through the nitty-gritty details of your plan, like replacement costs and actual cash value. In addition, you can contemplate potential scenarios to determine your coverage.

Adding one or more of these popular coverages to your home insurance policycould better protect your home and loved ones:

• Water back-up coverage

Essential in the event of basement flooding by a malfunctioning sump pump.

• Underground service line coverage

Providing coverage to replace phone cables, internet lines, electrical lines, water pipe lines, and waste pipe lines that are under ground.

• Identity theft coverage

Financial identity repairs may be achieved through credit score upgrades.

• Home cyber coverage

Prevent your home's built-in devices from being hacked.

If you depend on the independent insurance agent for property insurance, you may end up having to foot the bill for replacement.