No matter where you are, there are likely new build communities popping up everywhere. If you happen to be one of the lucky owners of these new and beautiful homes, ensuring your property is absolutely something at the forefront of your mind. While at the core, homeowners' insurance is fairly consistent no matter the age of the home, some special considerations come along with a new build.
Start Before Closing Day
Do not make the mistake of waiting until the last minute to secure insurance for your home. Although each company is different, between the processing of your application and the verification of the construction details you have provided, many companies require a couple of business days to establish a policy. Pair this with the fact that most lenders require verification of coverage before the loan can close and waiting will delay your ability to seal the deal.
Ask for New Construction Discounts
Find out if the insurance company provides discounts for new construction properties right away. The cost of homeowners' insurance is largely based on the risk of damage to the home, and therefore, the likelihood of the owner filing a claim. On average, newer homes have a lower risk for damage than older homes, and as such, are considered less risky. This reduced risk should be passed to you in the form of a discount.
Get the Details from the Builder
A homeowners' insurance policy is only valid when it is accurate. Therefore, you must provide the insurance company with the most accurate information. Insurance companies sometimes ask for details about the type of countertops in the home, the size of various rooms, and the type of material used on the roof. It is a good idea to speak with the builder to collect all these details to ensure the information you provide is accurate.
Include Ample Personal Belongings Coverage
If you are moving into a new build and it is your first home, you may not have it furnished just yet. However, do not insure your personal belongings in your home based on the now; think about the future. An important thing to remember is that on its own homeowners' insurance will cover the cost to repair the home, not the cost to replace your belongings inside. Ensure the personal belongings coverage limit you choose is enough to keep you safeguarded.
Homeowners' insurance is incredibly important, so consider taking your time to build the right policy.