Some homes hard to insure

Most people recognize how important it is to protect their belongings, including insuring those belongings against the possibility of loss, theft or damage. Of course, most people want their home insured in particular, since their home is their single most valuable material possession.

For this reason, it is important to determine the viability of insuring a home before buying it. Some homes are harder to insure for an affordable amount than others are. There are multiple factors that play into this.

One is if the home is built in a disaster-prone area. If it is, insurance companies may very well view it as high-risk and be hesitant about insuring it. You may still be able to get the home insured, but your choices of insurers will likely be fewer, and those you have will probably charge you more than they would for homes in safer areas.

Correspondingly, it is advisable to check out the history of disasters in the area where you want to buy a home. You might find a home close to your preferred area that is in a safer spot than your first choice. That could allow you to get lower insurance rates.

An additional factor that can affect home insurance availability and rates is the home’s age. If it is an older home, insurers may presume that it is more likely to have problems than a newer home would. That can cause them to seek higher rates to insure it. The home having a checkered claims history can be a factor as well.

A good attorney can help prospective homeowners look through all of these factors and more. They can also help to make sure that the insurance company you seek coverage from is assessing the situation accurately.

Source: The Motley Fool, “7 Types of Homes That Are Hard to Insure” Susan Ladika, Nov. 15, 2014