Buying a new home? Add your insurance agent and an inspector to your advisory team


couple sitting on floor imagining their new home

Thinking about buying a new home this spring? Do your homework now because home buying is likely to be the single biggest purchase you’ll ever make.

If you’re in the market for a new home, you’ll probably work with a professional realtor and a mortgage lender. You should also add a private home inspector to your advisory team – we make the case with some rather alarming “what can go wrong” video clips below. And here’s another professional that you might not think to add to your team but that you should: your independent insurance agent.

The Hanover offers a great post on five ways your insurance agent can help in the home-buying process. Insurance agents are local experts who know the neighborhoods, school systems and community safety. As you narrow down choices, they can give you insurance cost estimates. Hanover notes that “the neighborhood, the size of the home, the presence of a pool or trampoline, and the distance from a fire hydrant and fire station are just a few of the things that can impact your home insurance premium.” We’d add checking to see if your home is in a flood zone.

Once you pick out the home you want, The Hanover says there is another important role your agent can play:

Insurance claims filed by previous owners can impact your home insurance premiums. Your independent insurance agent should be able to access this information using the Comprehensive Loss Underwriting Exchange (CLUE). If several claims have been made on the property, insurance carriers may be concerned that the house may have long-term problems, resulting in higher premiums. It is particularly important to pay attention to water damage claims that have been filed.

Whether you’re contemplating new home construction or buying an older home, hiring a private inspector can help you avoid winding up with a lemon. Make sure the inspector you hire is licensed and credentialed.

An inspection usually occurs after you’ve made an offer on a home but prior to the close. An inspector will provide a report that will allow you to identify any problems and make remedial requests of the seller. You can also share the report with your agent to highlight any red flags.

Hiring an inspector isn’t a step you should skip. Sometimes, buyers who are looking at newly constructed homes have the misconception that because the home is new, they don’t need to hire an inspector before buying. That can be a big mistake learned the hard way.

The clips below make this case. They were compiled by Reuben Saltzman, who has a blog called The Home Inspector in the (Minnesota) Star Tribune. Saltzman has an annual tradition of compiling his top 20 funny/scary inspection photos, along with video compilations. We’ve included clips for this year and last, but you can find more of his annual top 20 inspection pics at this company website and also on his Facebook page. His pics and videos are amusing – but they are also an insurance agent’s nightmare, graphically illustrating problems that run the gamut: roofs, cellars, decks, plumbing, attic leaks, deck issues, water management and more. Chances are your own home walk through would spot many of these blatant problems – it’s what you don’t see but that a trained inspector would that could trip you up!

 

 

 

 

 

Snowbirds: Tips for winterizing your home while away


illustration of older couple paccking a car in the snow to head for Florida

Will you be making a seasonal move south to weather out the harsh winter months in a more favorable climate? Whether you’ll be gone for a few days or a few months, if you are traveling over the winter, there are some home maintenance tasks you should tend to so that you don’t come home to unpleasant surprises.

No one knows better than an insurance company what the common winter home hazards and problems can be – after all, they deal with the claims damage every year. This excellent infographic is courtesy of Travelers, one of our Renaissance Alliance insurance partners. It offers a good checklist to help you secure your home for an extended winter absence. While some of the tasks are suitable to prep for a long-term absence, others are handy for shorter travel periods, too, such as a week over the holidays or a midwinter vacation.

Click for a larger version.

infographic with tips about how to winterize your home for extended travel

Related posts:

 

Last-Minute Halloween Liability Issues


costumed kids trick or treating

Halloween is scary enough, we don’t mean to add to your fright, but if you are a homeowner or an apartment dweller, there are some safety precautions you should take to greet the little ghosts and goblins who will be ringing your bell or roaming the streets.

A few years ago, Christopher Boggs wrote a great Guide to Homeowners Liability for Injury to Trick or Treaters. He notes:

When the porch light is on, trick-or-treaters are considered invitees; the homeowner is inviting them onto the property (though not for a mutual benefit). Because of this relationship, the homeowner owes the candy seekers the level of “reasonable” care that falls under Ordinary Negligence.

Now anytime you have anyone visit your home, they could suffer an injury or an accident – that’s why you have insurance. But on Halloween, a steady stream of small feet traipsing across your porch in the dark increases the risk. Plus, you are giving out food.

Here are some tips to minimize Halloween hazards and reduce your risk.

  • Keep porches and walkways well-lit and free of debris and clutter that might be tripping hazards
  • Put reflective tape on your steps and along your walkway
  • When decorating, avoid candles – use LED lights and battery-powered lights instead.
  • Keep pets away from kids to avoid bites, scares or allergic reactions. Even friendly pets can be overexcited or upset by the unusual activity and may be skittish or overly protective.
  • Avoid mystery treats. Distribute labeled treats and tell parents what they are and if they contain nuts.
  • Provide alternative allergy-free treats – consider small non-food trinkets.
  • Be cautious about any spooky pranks for kids or guests – make sure they are safe and not too scary to young children.
  • If you are hosting an adult party, you have particular responsibility to take care in the serving of alcoholic beverages. See our post on holiday parties and liability issues.
  • If you are driving any time on Halloween, be super cautious. Little monsters may be out at any hour and frequenting normally quiet neighborhoods. Be particularly cautious at dusk an early evening.

Protect your home and car too!

Halloween is a huge night for vandalism. Here are a few tips to protect your property from fire, theft and vandalism.

    • Don’t overload electrical circuits with lights.
    • Paper and dried plant decorations can easily ignite. Keep them away from flames, lights, and electrical cords.
    • Lock up bicycles, gas grills and other outdoor valuables.
    • Park your car in a garage, if possible. Mischief makers may egg your house or car.
    • If you don’t have shelter for your car, consider stopping at the car wash for a coat of wax that may offer some protection.
    • If you are out trick or treating with your kids or partying with your peers, make your home looks occupied. Leave lights and the TV on.
    • Doorbell cams and motion activated lights can offer added protection.
    • If your car or home is egged, deal with it right away that night or in the morning before damage can set in. See How to Remove Egg Stains From Your Car’s Paint Job and 4 Ways to Wash Egg off your home

    Call your agent

    If you should suffer any damage to your property or have any accidents during Halloween weekend, file a claim as soon as possible to get the claim process in motion. Be ready with the details of where and when the event occurred, along with the names and addresses of any injured parties or witnesses to the event. If there is damage to your property, report it to the police, take photos, and record the details so you won’t forget them later.

How well do you know your stuff? Create a home inventory!


fyrniture items in a home inventory

Pop quiz – without looking, see how you do answering these questions:

  • What are the makes and years of your major kitchen appliances?
  • How many pairs of pants do you own? Jackets? Shoes? Boots?
  • What year did you buy your mattress and bed frame and what brand is it?
  • Name all the power tools you own. List the contents of your tool chest?
  • What brand of dinnerware and flatware do you own and when did you buy it?
  • List all your AV equipment, the make, the brand and the year you bought it.
  • Write down everything in your living room. Include what’s in the drawers and closets.

It’s not so easy remembering that stuff, is it?

It would be even harder if you were trying to recall all your stuff right after your house was destroyed in a fire or demolished in a hurricane. That’s why it’s important to keep a home inventory. If you find yourself under the terrible stress of recovering from a disaster or even a burglary, you don’t need the added burden of trying to remember all the possessions you lost so that you can be properly reimbursed by your insurer. A good home inventory will help you document your losses and make it easier to file a claim and get it processed.

You can record your “stuff” in a notebook (old-school style), but phones and computers have really simplified the process. A simple spreadsheet will do the trick, or use your phone to take  room-by-room videos and document with photos. Or download an inventory app. Just be sure that you have multiple copies, that you store your inventory in a safe and accessible place and you keep it updated. Even if you make a hand-written version, you can scan it and keep it online in cloud storage.

If you’ve never done a home inventory, it can be a daunting job, but there are tools to help. And going forward, things will be much easier if you get in the habit of taking photos of new purchases and saving receipts. Log serial numbers, when available.

Consumer Reports offers advice on How to Inventory Your Home for an Insurance Adjuster – including this short video:

Here’s more home inventory advice from people who should know: insurers.

If you are interested in an app to help you create a home inventory, here are some reviews of top picks:

 

Take the “What the Flood” quiz


How much do you know about flood insurance? Probably very little, unless you’ve had an experience with flooding or your insurance agent has discussed it with you. Check it out – take this quick What the Flood interactive quiz to see if you understand the insurance protection that would apply should common water damage scenarios occur. The quiz is promoted by the National Association of Insurance Commissioners (NAIC), who offer great info on Understanding Flood Insurance.

Here are a few common flood insurance myths

  • Myth: I don’t need flood insurance because I already have homeowners insurance.

Reality. Homeowners insurance rarely covers flood damage – talk to your agent.

  • Myth: I don’t need flood insurance because I don’t live in a high-risk flood zone.

Reality: More than 20% of the National Flood Insurance Program’s (NFIP) claims come from outside high-risk flood areas.

  • Myth: It’s already hurricane season so I am too late to buy flood insurance this year.

Reality. You can purchase flood insurance any time, but it generally takes effect 30 days after purchase for coverage to take place.

Here’s a handy NAIC infographic that shows homeowners vs flood insurance coverage:

Why not have a chat with your insurance agent to find out if flood insurance makes sense for you? Here are some great questions that NAIC offers as discussion points when you talk to your insurance agent about flood insurance.