First Home Buying

Many companies who offer auto insurance also provide other types of coverage including home protection plans. Your insurance company if you currently have renter’s insurance or any other type of coverage can tell you if they offer homeowners’ coverage as well.

About the Home

When you speak with a customer service representative from your prospective home insurance provider, they will ask you several questions about the property. As with your mortgage, you should shop around with a few different insurance companies to see who offers the best rates and the amount of coverage you need.

Be prepared to answer some or all of the following questions. The insurance company will apply the answers to an algorithm or formula in order to generate a rate estimate for you. Generally each status or range from something they ask you will be applied to a graduated scale specifying the amount of the coverage charge for that specific aspect of the home. For example, if your home is 32 years old it might cost a base rate of $200 to insure, whereas its base rate may have been only $179 if it were 29 years old.

Homeowners Insurance – Sample Questionnaire

• What is the address?
• In what year was the home built?
• Is the home a single family, townhouse, or condominium?
• What is the approximate square footage of the home?
• What is the approximate acreage of the land?
• How many stories tall is the home?
• How many bedrooms and bathrooms are there?
• What type of construction and foundation does the home have? (concrete slab, siding, wood frame, cinderblock, etc.)
• Are there any separate detached buildings on the property such as a detached garage or storage shed?
• Is there a basement in the home?
• Approximately what percentage of the basement is finished?
• Is there a deck off of the house?
• Is there a swimming pool?
• Does the home have any fireplaces or wood stoves?
• What style and material is the roof made out of?
• Approximately how long ago was the roof last replaced?
• What kinds of heating and cooling systems are installed? (heat pump, furnace, window a/c, etc.)
• What types of flooring is installed throughout the main areas of the home? (tile, carpet, hardwood, etc.)
• Approximately how long ago were the heating and cooling systems replaced?
• Which type(s) of power does the home use? (electric, natural gas, solar, etc.)
• Approximately how long ago were the power and utilities systems updated? (plumbing, electrical, etc.)
• Does the home have fuses or circuit breakers?
• Are deadbolts installed on each of the exterior doors?
• Do you have any pets?
• Are there smoke detectors, fire extinguishers, and/or sprinklers inside the home?
• Is a home security system installed?
• What is the approximate current market value or the sales price?

After you’ve answered all or most of the questions to the satisfaction of the insurance company, the representative will wave their magic wand and provide you with an insurance quote. Jot down this number and thank them for their time. Go look elsewhere to compare this rate with two or three other companies, and then make your decision.

As part of the quote, the representative should talk to you about their levels of coverage, including how much they estimate the cost would be to rebuild the home in the event that it was destroyed by fire, flood or other disaster. Many companies also offer optional coverage for valuables within the home such as jewelry and furs, and you may also be able to have a detached shed or garage covered at a small additional cost.

Questions asked of you may or may not include those on the preceeding list and there may be some questions that are not included above at all. Use this list as a guide and make sure you know many or all of these key facts about your first home buying goal before you talk to an insurance representative.