Before you get the keys….homeowner’s insurance tips

by Karin Wertheim
REALTOR®
Silver Peaks Realty
Putting a home under contract is exciting.  Most escrow periods average 30-45 days and during that time you will most likely have a home inspection performed.  If you are getting financing, your lender will finish up the underwriting process and the appraisal will get underway.  One thing to think about as soon as you put that home under contract, whether you are paying cash or getting financing, is the purchase of a homeowner’s insurance policy.  Many factors will go into the cost of your policy and it’s a good idea to start talking to insurance agents during your “due diligence” period in particular if your home will require flood insurance.  Flood insurance can be expensive and you will want to know the cost of coverage and also make sure that you know what level of coverage will be acceptable to the underwriter.  Many agents have seen flood insurance break a transaction because the cost is unacceptable to the buyer, so it’s important to research the costs up front.  In Teton Valley we also have quite a few logs homes.  Log homes have unique character and are often in high demand among buyers who enjoy the rustic design elements of a log home.  It’s important to know that log homes are more expensive to insure, so it’s a good idea to shop around in advance in order to be more aware of what rates are.  Many buyers also assume that their insurer on their primary home will insure a second home in Idaho, but they may not write policies in Idaho or may only insure the property if you are not using it as a vacation rental when you are not in residence.  If you will be renting the property, you may have fewer options in terms of the number of insurance companies that will underwrite a policy.  There are many other things to consider when choosing a policy.  Checking into insurance policies as soon as you get your new home under contract is always a great idea!

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