Is home insurance required to buy a home?

You're often required to show proof of homeowners insurance to your lender before they'll relinquish the keys to your property and fund your home loan. Until your home is paid in full, your lender holds a lien on your property, so it's in their best interest to make sure that the property is insured while you're paying down your mortgage.

If you're purchasing your new home with cash or an unsecured line of credit (credit card or personal loan), you may not be required to show proof of home insurance before closing. Home insurance isn't mandated in any state, but you should still consider buying homeowners insurance to protect the equity in your home. Learn more about what home insurance covers and how homeowners insurance works.

How to shop for home insurance

During the mortgage approval process, your loan specialist will let you know when to buy homeowners insurance. However, you can start shopping for a policy as soon as you've solidified your new address. Shopping for homeowners insurance early gives you more time to select the right policy and look into ways you can save.

While your lender may provide a referral, it's a good practice to compare homeowners insurance quotes and pricing, homeowners insurance coverages, and consumer reviews before making a final choice.
You can often save money by bundling homeowners and auto insurance with the same insurer. Learn more about switching your homeowners insurance.

What to look for in a home insurance policy

1. Check the limits on your personal property and liability coverage
2. Your belongings, such as clothing, furniture, electronics, and jewelry, are insured under Coverage C (personal property coverage) on your home insurance policy. Make sure the limit is enough to cover everything you own. Keep in mind that certain items may fall under a specific category with a "sublimit" set by your insurance company. And if you have any expensive items, such as art or collectibles or jewelry and engagement rings, you may need to add an insurance rider to fully cover them.
3. Coverage E (personal liability coverage) protects you if you're liable for an incident that injures someone. Be sure to select a liability limit that properly covers what you have in assets. Most home insurance policies max out at a $500,000 liability limit. If you need additional coverage, you can purchase umbrella insurance, which provides extra liability coverage for home insurance policies.
4. Be aware of exclusionsDepending on where you are shopping for home insurance, there will be a list of things that won't be covered on a standard policy. These could include earthquakes, landslides, mudflows, and flooding. If you're at risk for a peril that isn't covered on your policy, ask your home insurance agent or company if there's an option to purchase protection for excluded incidents.
5. Understand your deductibles
6. When buying home insurance for the first time, it's important to pay attention to your homeowners insurance deductible for property damage. Your deductible is the portion of the claim you're responsible for, so make sure the deductible amount is within your budget.
   Unlike car insurance, your home insurance deductible won't always be a set dollar amount. It could be a percentage of your policy's dwelling coverage. Your policy may even include a split deductible. That means you have a set dollar amount for most claims, but a percentage may apply for wind damage or other covered perils.

​

A standard homeowners insurance policy may cover water damage to your basement, depending on the source. For instance, if a burst pipe was the cause of the damage, your policy may pay to repair damage to your basement. However, if a flood causes damage to your basement, you likely won’t be covered.

​Your basement flooded. What will insurance cover?Your homeowners insurance may cover damage to your basement, and damage to the personal property in your basement when:

• A pipe bursts: Your insurance may pay to repair or replace the things that the flood water damaged in your basement, up to your coverage limit.
• A plumbing appliance overflows: Sudden and unintentional leaks from a home appliance, like your washing machine or air conditioning unit, or accidental overflow of your bathtub, sink, or toilet may also be covered.

Is damage to your basement from groundwater covered?

​Groundwater is naturally occurring water underground whose levels may increase after heavy rains or snow melts, which can be destructive to basements. However, your homeowners insurance policy won’t cover damage from groundwater.

Will additional flood insurance protect my basement?

You may be able to purchase a separate flood insurance policy to protect your basement against water damage from outside flooding. Flood insurance may be essential if you live in an area with a high risk of flooding. Understand that not all flood insurance policies include below-ground-level spaces, so check with your insurer to see how you’re protected.

​                                                                                                      
Steps to take if you have a flooded house

Once it’s safe to return, you can start surveying the damage and drying out your home. You’ll also want to file insurance claims and find contractors to help you with repairing your flooded home.

1. Make sure it’s safe to return

If flood waters infiltrated your home during a storm or hurricane, cleaning it right away should be your overriding concern. But you might need to wait until it’s safe to return before you can start. Damage from a major storm like a hurricane can be dangerous, so wait until local officials give you the all-clear before you head home.

2. Cut off power, gas, and water

Turn off home utilities such as gas, water, and electricity before entering your home. HUD recommends assessing your home’s structural integrity before entering. Get a professional inspection if you’re not sure it’s safe. If the waterline is above the electrical outlets, call an electrician to ensure everything is safe before proceeding.

3. Document everything

Start by documenting the flood damage with photos and video for when you file an insurance claim. Contact your insurance company or companies to start your claim immediately.

4. Reach out for help

After a flood, most homeowners can tackle the initial stages of clearing out water-soaked furniture, appliances, and carpet and removing drywall. But for those who aren’t able, volunteer organizations, religious groups, neighbors, friends, and contractors can help. Groups like Team Rubicon, a nonprofit organization that recruits, trains, and deploys military veterans for disaster response, are often on the scene after disasters.

Tips for repairing your flooded home

Flood recovery can be a long process. You’ll need to find equipment, secure your home, and clear damaged items. Some tips for what to do after a flood once you’re ready to start the clean-up process include:

Buy personal protective equipment

​Rubber boots, gloves, and clothes are essential for keeping you healthy while you work in your wet home. Flood water contains hazardous chemicals and raw sewage, the residue of which gets left behind after the water recedes. Moreover, lead-based paint particles can get stirred up, especially if your home was built before 1978. Mold spores and dust in the air can also be a danger. Wearing an N95 mask or a half-face P100 respirator can help prevent you from inhaling harmful particles.

Remove everything

Don’t wait for an insurance adjuster to show up before you start working on getting your house dry because mold can multiply and cause even more problems. Take everything that the water touched out of your house. Set any solid wood furniture, family photos, or other potential salvageable items out to dry. Rip out the carpet and carpet pads.

Some hardwood floors and solid wood trim might be salvageable, but for the most part, you’ll have to strip your home down to its concrete slab and wall studs. Demolishing drywall damaged by water is easy enough for the average homeowner. To be safe, you can cut the drywall about a foot above the waterline.
Most of the time, the water will wick up the drywall a couple of inches above the waterline but not to the ceiling. Water may wick higher than that in the studs, but solid wood two-by-fours should dry out after a few days.

Once you have removed the drywall portion, cut the insulation and remove that. Don’t yank down the insulation, as that will leave a gap near the top of the wall. Once you submit an insurance claim, an insurance adjuster will survey the damage. But if it's a large disaster, the adjuster might take a while to visit your site. It’s a good idea to keep a small section of wet drywall to have evidence of the waterline for inspection.

Don’t forget hidden spaces

Be sure to check drawers and other areas of your home for standing water. The base of your kitchen cabinets behind the toe kick may trap some standing water. If you have a kitchen island, it may also have water trapped in the base. You can drill holes in the base of the toe kick to release any trapped water and get air circulating.

If you have built your cabinets out of solid plywood, they would likely survive fine after drying out. You’ll want to cut out the backs to remove the drywall and insulation behind them but leave the structure of the cabinets intact. You may need to replace more modern cabinets made from pressboard or particleboard.

You may be able to save interior doors. Take the doors off their hinge pins and stack them outside, lying flat with space between them for airflow. If they stand upright, they are likely to warp. Put a fan on them to facilitate the drying process.

Clean and disinfect

Get a broom and a vacuum  and clean everything out thoroughly. You can even hose down the solid surfaces — studs, and slab — with clean water to help wash away growing bacteria. But don’t power wash or get the remaining drywall wet. Once everything is relatively dry, you must use something to kill the bacteria.

A bleach solution of half a cup of bleach in 1 gallon of water applied with a pump spray can also help kill mold and bacteria. Bleach will corrode metal, so avoid spraying electrical outlets and cabinet hardware.

​Ventilate and dry

Once everything is cleared and cleaned, use fans to dry your home. Keep the windows and doors open as much as possible, too. It can take between two and four weeks for your home to completely dry before it’s ready for rebuilding after a flood.

Hire credentialed contractors

Once you are ready to start rebuilding, with the help of a professional, be cautious of scams or contractors looking to move too quickly. HUD urges homeowners to check credentials and hire only licensed and insured contractors.

Take your time to check references. Talk to or visit your potential contractor’s previous satisfied customers. And be cautious about paying a big deposit before work has begun.

Be prepared for future emergencies

FEMA has resources on how to protect your property from flood damage. You might also want to prepare a home emergency kit, create a home inventory, and evaluate your flood insurance needs to ensure adequate coverage if your home floods again. Learn more about how flood insurance works and how to get coverage.

When was the last time you took a look at your home’s foundation?

Maintaining a solid foundation is crucial to ensure the safety and stability of your property — and making prompt repairs will protect you from larger, more expensive problems down the road.
Regardless of the age of your house, inspecting the foundation should be part of your annual to-do list.

Here are five things you can do to avoid damage and maintain a solid foundation.

Check for signs of foundation damage.

Inspect the exterior of your house for large cracks in the foundation. Inside, look for crumbling, bowing or sagging walls. Diagonal cracks on interior walls and cracks in the floor or ceiling can also indicate foundation problems. If you spot issues, it’s best to call an experienced professional for repairs.

Keep water from pooling around the foundation.

Too much water can cause foundation upheaval. Make sure you have proper drainage in the form of gutters, downspouts, downspout extensions and soil sloping to carry excess water away from the foundation.

Keep the soil moist.

While you don’t want to drown your foundation in water, you also don’t want clay-rich soil to get too dry, potentially causing cracks in your foundation. If you live in a dry climate or have dry seasons, you want to keep the soil moist enough to prevent contraction.

Control vegetation near the foundation.

Attractive landscaping adds to your home’s curb appeal, but stick to smaller plants for gardens that border your home’s foundation. Tree roots can cause problems with your foundation, so it’s best to plant trees in other areas of your yard. 

​Repair any damage promptly.

When it comes to home maintenance, whether with your foundation or something else, catching and repairing problems as soon as possible can save you money and headaches in the future.

Do you have questions about maintaining your home or your insurance coverage? Reach out today.

When was the last time you gave your home and auto insurance policies an annual checkup?

A lot can happen in a year, and reviewing your current coverage is worthwhile to see if anything needs to be updated or changed.

​Keep reading to learn why you should check in on your policies.

Major Home Renovation

If you added on to your home, upgraded the kitchen and bathrooms, or made any other big changes to the property, make sure you have enough dwelling coverage to rebuild your newly remodeled home.
Even if you’ve only done minor renovations, rising construction labor and materials prices could mean that your coverage wouldn’t be enough to rebuild your home in its current condition. In that case, you’ll want to increase your coverage to avoid having to foot some of the bills yourself.

Addition of Valuable Objects

Have you purchased or inherited valuable artwork, antiques or jewelry in the past year? It’s time to update your home inventory and see if you have the proper policies to replace the value of the items inside your home. And if you added a home security system to protect your valuables, you may be eligible for a discount.

Change in Marital Status

Did you get married recently? You could be eligible for a discount if you bundle home and auto insurance policies with your new spouse.
If you got divorced or your spouse has passed, you can no longer be on a joint car or home insurance policy with that person. Reach out to get a quote for your own policy.

Payments on an Auto Loan

Review your auto insurance coverage to see if it still meets your needs. For example, if you’ve paid enough of your auto loan down, you may no longer need gap insurance. If you’ve changed jobs and are doing less driving, you may be able to get a discount.

Do you have questions about your coverage? Reach out so we can discuss your 

Are you missing out on savings? If you have insurance policies with more than one company, the answer is most likely yes. 

The commercials are true: Bundling insurance policies is often cheaper and more convenient when done with a single insurer. But why? 

While bundling may not be right for everyone, here is the how – and the why – on insurance bundling. Then you can make your own decision.

What does it mean to bundle my home and auto insurance? 

Bundling your home (or renter’s) and auto insurance means getting both policies from the same insurer. You can ask for a quote to see your potential savings before you make a switch.

1. Save money when you bundle policies.

You probably have to have home and auto insurance anyway, so you want to get the best possible deal on your coverage. You may be eligible for a multipolicy discount when you get more than one insurance policy from the same company. This is in addition to any other discounts you receive, such as for a good driving record.

2. Simplify payments and organization.

Bundling your insurance coverage can help you simplify with one monthly payment instead of several. It’s also easier to keep up with your policies when you can view all your insurance documents in one place. Check your coverage, ask a question, and file a claim — all from the same online portal or mobile app. If your insurance needs to change in the future, you just have one phone call to make. 

3. Increase your convenience as a customer.

If you file claims often, it's better to have a company that knows and values you as a customer. And even if you don’t file many claims, holding multiple policies with a single insurer gives more business to a company that has given you superior customer service in the past.

If you have any questions, reach out for help.

​Do you have uninvited guests in your home? Depending on where you live, pests could be a year-round or seasonal issue, but they are never welcome. Nothing shatters your sense of peace and comfort in your home like discovering mice, termites, ants or other pests looking for food and shelter.

Luckily, there are tried-and-true methods for dealing with bugs and rodents in both the short and long terms. Keep reading to discover the best pest control solutions for your home.

Short-Term Pest Control Solutions

Once you’ve spotted signs of an infestation in your home, here’s what you can do to control the problem immediately:

• Use poison and traps to eliminate ants, roaches, flies, mice or whatever pests you’re dealing with.
• Treat your pets with flea medicine.
• Seal entry points to keep bugs and rodents out.
• Keep your home clean, and don’t leave food out.
• Remove standing water that could be a breeding ground for mosquitoes.

Long-Term Pest Control Solutions

Once you get things under control for now, you’ll want to address the root cause to keep pests away for the long run.

• Fix moisture issues or leaks that may be attracting pests.
• Patch up cracks or gaps in your home’s structure.
• Insulate your attic to keep mice and other rodents from getting in.
• Proactively schedule regular pest inspections and treatments.

While no one enjoys dealing with pest issues, regular maintenance and prevention can help keep your home a haven — but only for you and your human guests.

​Have questions about homeownership or insurance? Reach out so we can discuss your coverage.

Are you planning a backyard project?

With spring here and summer on the horizon, many homeowners are ready to spruce up their backyards or take on a big project.

If you’re ready to plant new trees, build a deck or patio, add a pond, or do anything else that requires digging, make sure you know where underground utilities are before you break ground.Send me a Home Insurance Quote
Keep reading to learn who to call before you dig, how to identify different utility markings and how to keep yourself safe during an excavation project.
Call 811.

​This is the national call-before-you-dig number. You or your contractor should call 811 to request the marking of buried utilities so you don’t accidentally damage an underground utility line. You can also contact 811 online through your state’s website.

Understand the different colors.

Once the buried utilities in your yard are marked, you may see different color markings. Here’s what they mean:
​

• Red: Electric lines or cables
• Yellow: Gas, oil, steam or petroleum
• Orange: Communication or alarm lines
• Blue: Potable water
• Purple: Reclaimed water or irrigation
• Green: Sewers and drain

Stretch your body before digging.

If you’re doing your own backyard digging project, make sure to stretch and warm up before you get started. Otherwise, you risk injuring yourself.
Use the right equipment.

​Are the hand tools in your shed or garage enough, or do you need to rent equipment for your project? Do your research before you begin so you have the proper tools.
Contractors should be insured and bonded.

If you’re hiring a contractor for your digging or excavation project, check that they have insurance and are bonded. This protects you if they don’t finish the project or cause damage to your property.

If you accidentally hit a utility line while digging, call 911. And if you have questions about your home insurance, reach out for answers.

​The best homeowner insurance is the insurance that best meets your needs. The insurance shopper that takes the time to understand the basic elements of home insurance will have much more confidence and sense of satisfaction when making an insurance purchase. The homeowner policy has been around for a long time and so most of us have a general concept on how the policy works. The more you know about the market value of your home and the approximate cost to rebuild it the better off you will be when shopping for the homeowner policy.

This kind of knowledge is the foundation for determining what kind of policy to purchase. The age of your home has a direct bearing on the market value. The older homes built in the 1900’s have much lower market values today because most of them have depreciated. The market value for an older Victorian style home may be $50,000 but the actual cost to rebuild that home may be $200,000. The older homes that depreciate in market value are insured with actual cash value policies. They are often called market value policies. These policies will reimburse you for the market value of your home when there is a total loss. The market value policy is the best homeowner policy for the older home that has depreciated.

The replacement cost policy is better designed for newer homes or homes under construction. The replacement cost of a home and the market value are almost the same. Replacement cost is applied to the dwelling and most often to the contents of the dwelling. Replacement cost will repair or replace any loss with like kind and quality of materials without depreciation.

The best homeowner insurance for you will be determined by the age and market value of your home. The discounts for older and newer homes are the same. The protective device discount for deadbolt locks, smoke detectors, and fire extinguisher apply to both types of policies. Fire and burglar alarm systems are additional discounts that could be applied to both older and newer homes. Check our recommended insurers for more details.

​Last year the UK's average premium for Buildings Insurance increased by 1% to just over £205 and the average for Contents Insurance rose to £151, up 2%. But within the market we've seen some much bigger rises – if you're with Norwich Union you'll have seen your premium rise by around 6%. 

So what's going on? Every year we see premiums rising. Surely with so much competition in the home insurance market, you wouldn't expect to see such inexorable rises in premiums? 

Let's consider the situation more carefully. 

The cost of repairing and rebuilding houses is a reflection of the rising price of labour and building materials. This means that cost to the insurers of claims under the buildings cover similarly rises. So as their costs rise, so do your premiums. And there's also the indisputable fact that cost inflation also affects the insurance companies own operating costs. Wherever possible, they're bound to add a little extra on for that! 

Then there's that lovely British weather. Michael Fish could be forgiven for believing we don't live in a hurricane zone, but nevertheless it's a fact that storms, and especially floods, are becoming ever more frequent. Flood damage can be particularly destructive with, according to the Association of British Insurers, the average insurance claim ranging between £15,000 and £30,000. And during the last 18 months we have seen particularly destructive floods create headline news at Helmsley in North Yorkshire, Carlisle, and Boscastle in Cornwall. Those events must have cost the insurance companies multi-millions. 

The other area where costs have been rising is burglary. The average burglary claim has now risen to around £1,400. There seem to be two reasons – firstly burglars are finding pickings easier to come by and move on. Modern family homes are packed with valuable electronic gismos – from laptops to I pods, digital cameras and flat screen TV's. The other reason is that burglars are targeting well-off neighbourhoods more and more. 


Against this background the insurance companies are able to price home and contents insurance down to individual postcodes. If their records show a problem with flooding, or subsidence, or an increasing incidence of burglary in you immediate area, their computers will load your premium to reflect the additional risk. 

Your no-claims discount will only serve to offset these upward pressures to a certain extent. And don't forget that once you have a five years no-claims record, your discount doesn't increase, it's capped. Thereafter, all the premium increases will land fully in your lap. 

So what can you do to save money? 

The most important step by far, is to shop around every year for the best available deal. Maybe it's a chore, but thirty or forty minutes on the Internet (including ten minutes on this web site!) will yield you results. Within that space of time you'll have found the cheapest insurer and, as an online customer, you'll probably have qualified for an additional 10% discount. Then you can always agree to pay by direct debit – that'll also trim off a bit more. 

Of course there are other things you can do, especially in the arena of home security. Join the local neighbourhood watch scheme, install security locks on your windows, fit external security lighting, up-grade the locks on your doors and get a burglar alarm. Added security will earn you discounts on your insurance but will cost you money to install! Perhaps the added peace of mind alone will be worth the cost. Only the local neighbourhood watch scheme arrives free! 

The best general rule is don't stick with the same insurance company too long. Keep them on their toes. They have a tendency to take loyal customers for granted. Yes, it really does pay to shop around – try it and prove it to yourself!