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As realtors, we’ve seen firsthand how homeowners can save money, avoid headaches, and protect their biggest investment simply by being smart about their insurance choices. Whether you’re buying your first home or have owned property for years, understanding how insurance fits into the bigger picture of homeownership is essential. From policy details that are often overlooked to practical ways to lower premiums without compromising coverage, here are insurance tips every homeowner should know:
4-Point Inspection- This is typically required by insurers, particularly for older homes. It checks the condition of four key areas: the roof, plumbing, electrical, and HVAC (heating/ventilation/air conditioning). If any of these are in poor condition, it could impact your insurance rates or even your eligibility for coverage.
Wind Mitigation Inspection- In hurricane-prone areas, like Florida, this inspection evaluates how well your home is prepared to withstand strong winds. Things like roof shape, hurricane shutters, and door reinforcements all come into play here. If your home gets a good rating, it can reduce your windstorm insurance premium.
Roof Condition- The roof is one of the most important parts of your home when it comes to insurance. Insurance companies often check the age and condition of the roof before offering coverage or setting premiums. A new roof can help reduce premiums, but if the roof is old or in disrepair, it might increase your costs or even cause some insurers to deny coverage.
Flood Zones- Even if you don’t live near water, you might still be in a flood zone. Check FEMA’s flood zone maps to see if your property is in a flood zone, as it can significantly impact your insurance requirements. Homes in high-risk flood areas will need separate flood insurance, which is often an additional cost on top of your standard homeowners policy.
Claims History- Claims stay with you and the residence address for 5 years if a claim number is issued regardless of payout. If you sell your home or buy a home that has a claim, it will stay with you for 5 years. No need to have a $500 deductible in today’s market, make sure to do an annual homeowners insurance review for the best savings.
Roof Age and Coverage Guidelines:
- Architectural Shingles (15 years or less): Full replacement cost coverage
- Architectural Shingles (20 years old): Actual cash value coverage
- 3-Tab Shingles (10 years or less): Full replacement cost coverage
- Metal & Tile Roofs (25 years or less): Full replacement cost coverage
- Rolled Roofs (10 years or less)
Plumbing Guidelines:
- Polybutylene Piping: Not acceptable
- Hot Water Heater (14 years or less): Accepted
- Copper Piping: Accepted
- Galvanized Piping: Case-by-case basis. May be accepted if free of leaks and in good working condition.
Mobile Home Guidelines:
- 4-Point Inspection: Required for all mobile homes.
- 1995 or Older: Cash buyers only.
- 1996 or Newer: Eligible for full replacement cost coverage.
Electrical Guidelines:
Unacceptable Wiring:
- Aluminum wiring
- cloth wiring
- knob-and-tube wiring
Unacceptable Electrical Panels:
- Stab-Lok
- Zinsco
- Sylvania
- Challenger
- Federal Pacific
Flood Insurance- Flood insurance policies are offered through FEMA as well as other carriers. In some cases if the seller has an active flood policy through FEMA, the seller could gift the policy to the buyer which allows them to inherit the policy, and to be grandfathered in.
Navigating home insurance can feel overwhelming, but you don’t have to do it alone. Our real estate team is here to support you every step of the way—not just in finding the right home, but in protecting it, too. We work closely with a network of trusted insurance brokers who understand the unique needs of homeowners and can help you find the best coverage at the best value. If you have questions or are ready to connect with a reliable insurance expert, reach out to us today. We’re happy to make the introduction and ensure you’re set up for long-term peace of mind.
