If you’re in the market for a new home, we have some tips to help you make an educated decision. Keeping a few simple things in mind while shopping may save you money on future maintenance and on your home insurance premiums.
What to keep in mind when purchasing a new home
- Location: A history of theft, vandalism or flood in the area may affect the cost of your home insurance. A quick online search, chatting with neighbours in the area or talking to your real estate agent may help you identify these possible issues.
- Nearest fire hydrant or station: In case of fire, this determines how quickly help could arrive. You should also find out if the local fire station operates 24 hours a day.
- The home’s replacement cost: The size and construction of the home determines how much it would cost to replace it and its contents.
- Types of utilities: Variations in heating, electricity and plumbing, including their types, ages and current conditions may have an impact on your premiums.
Always hire a reputable and experienced home inspector to identify all of the potential risks your new home may present. Doing your homework before you buy could save you money for years to come.
Know what you have to insure
In addition to insuring the house itself, you should also factor in coverage for everything in it and any detached buildings or features such as a swimming pool. It’s always a good idea to have a list of your belongings to make sure you have enough coverage. What better time to take inventory than when you’re packing to move? Take pictures of your valuables as you pack, or video and narrate as you capture each item.
How much coverage do you need?
Your inventory can help you determine part of the total replacement value of your home, which is how much it would cost to rebuild or replace your building and everything in it if you had to start from scratch. Keep in mind, it’s not the same as the market value of your home, but the actual cost of the materials and labour needed to rebuild your home. Your Financial Advisor can help you calculate the replacement value and give you more information about full replacement coverage.