Purchasing a Home

SHOPPING FOR HOMEOWNERS INSURANCE

When shopping for insurance, you will need the following information. Without it. you may not get a quote or the quote may not be accurate! It is wise to comparison shop. It's essential to find a trustworthy agent and to understand each "non-covered peril."

Complete address of your house?_________________________
Are you sure your name(s) is on the deed?_____
(Call Hamilton County Registrar of Deeds at 209-6560.)
If the property is deeded to someone else, your insurer may not have to pay your claim!
Is your house brick or frame (wood)? __________
A house that has aluminum or shingle siding is considered to be frame.
One story?... Two stories?... Split level?... How many rooms? __________
If all livable rooms are on one floor it is a one-story house. If it has a full basement, it would be a "one story house with a basement".
What year was your house built? (See deed)_____
Describe other structures on your property (garage, storage shed, etc.).
What is the "square footage" of your house? __________
Multiply width by the length, and then multiply by the number of livable stories.
Complete these questions only if you live outside city limits:
Distance to nearest fire department? ____miles.
Distance to nearest fire hydrant? ____feet.
What is the condition of the exterior of your house (poor, fair, good, excellent)?_____
What is the condition of the interior? _____
How is it heated? __________
Does the house have smoke detectors?... Fire extinguishers?... Alarm system?... Security lighting?... Deadbolt locks?... Other?_________________________
Some companies offer discounts for security devices in your house.
Is your house built in a flood plain? (In Hamilton Co. call Planning at 209-6677.)
If it is, you will need a "flood insurance policy" sold by the federal government through your insurance agent.
Do you own a dog? _____ What breed? __________
Dogs represent security to many, but they carry risks as well; dog bites account for one third of all claims; some breeds are uninsurable and will be excluded.
How many losses and insurance claims have you had in the last 5 years?

Take time to recall accidents room by room. DON'T LIE! The company will get this info anyway! Three claims in three years could mean you'll be canceled and have to buy insurance that is 30% more expensive, if you can find insurance at all! Companies avoid people who have had lots of accidents, especially if they suspect the claims were inflated. Explain how improvements in the family or home make you a better risk now. Build a relationship of trust with the agent. Insurance should be used for catastrophes only! Avoid small claims and never substitute insurance for money you should be spending to keep up the home. That's fraud.

What happened and why? Did you file a claim? How much? When?
If your house is over 25 years old, what major changes have been made? Upgrades in electrical, plumbing, or heating systems? Roof? Modernized kitchens and baths? Vinyl siding? Safety and security devices? Structural improvements?
Improvement ..........................................................................................Year

Agents want to "write" owners who show continued interest in improving their property. Remodeling certain parts of your house may enable you to get insurance, or reduce the cost of your present policy. New wiring, box, plumbing, heating system or roof can extend the life of your home, reduce "risk & hazard," and improve property value. Report improvements in your home or neighborhood (street lights, watch program, better policing, etc.) and ask for a reduced premium!

IF HOME PRICES ARE GOING UP IN YOUR NEIGHBORHOOD, BE SURE TO "UPGRADE" YOUR POLICY EVERY FEW YEARS TO REFLECT THE CURRENT "MARKET RATE" (WORTH) OF YOUR HOUSE.
Your major decision is whether to insure your property for its "actual cash value" (replacement cost minus depreciation) or its "replacement value" (what it would cost to replace with another just like it). You may need two or three times more insurance if you want replacement coverage. Depending on age and quality of your home, it might be worth it.

"Actual cash value" is measured by taking the cost of repairs/replacement minus "depreciation" (loss of value to the property before the accident due to use/aging ).

For example, if your 20-year-old roof suffered wind damage and needed replacing, the insurance company wouldn't pay for a new one since the old roof had exhausted its life span. "Replacement coverage" eliminates the depreciation.

Market value of property $ __________
Replacement value (approx. $75 x sq. feet) $ __________ (you will be required to insure to 80% of this amount).
Calculate the worth of your valuable jewelry, furs, fine art, antiques, silverware, computer and guns. Some gain value after purchase, and some lose value.

Your policy probably limits coverage for these items, or may not cover them at all. Be sure to check! Buy additional coverage for not much additional cost. You will need to provide a detailed list, with receipts and pictures (or a video) of these items.
How much coverage do you need on your possessions in case of a burglary? $ __________.
Is there a theft problem in your neighborhood? The amount you can collect in case of burglary may be severely limited. Adding more "contents coverage" to your policy will protect you, and won't be very costly. Some policies may not cover your stolen possessions unless actual "breaking and entering" can be shown. The "non-covered perils" regarding your "contents" may be different than the non-covered perils regarding your "dwelling". Find Out!
What amount of "deductible" would fit your budget? $ __________.
The "deductible" amount would be subtracted from any claim, and the company would pay you the balance. The higher your deductible, the lower the cost of the policy.

REVIEW THE APPLICATION VERY CAREFULLY BEFORE YOU SIGN, ESPECIALLY IF THE AGENT HAS FILLED IT OUT FOR YOU. ANY FALSE STATEMENTS MAY RESULT IN REFUSAL TO PAY YOUR CLAIM.

GET TO KNOW YOUR AGENT! CALL AT LEAST ONCE A YEAR.