Home Insurance For Home Buyers – 3 Things You Need To Know

Home Insurance For Home Buyers…often one of the last boxes you need to check off before you get to the closing table on that new home purchase.

Unfortunately, this piece of the puzzle can be the most frustrating part of the process.  Lets face it, no one really LIKES paying for insurance.  For most, you would rather have a tooth pulled than to go through the process of researching and purchasing insurance.

Finding the right homeowners insurance for your new home doesn’t have to be complicated.

In this article we will show you 3 things New Home Buyers NEED to know when buying home insurance in North Carolina

What Should I Look For When Buying Home Insurance In North Carolina?

When Buying Home Insurance for Home Buyers In North Carolina,  here are three of the top questions to consider:


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Which Insurance Company Is Best For Homeowners In North Carolina?

The Best Insurance Company For Homeowners Insurance In North Carolina is determined by the following:

  • What Home Insurance Policy Forms Do They Offer
    • HO3 Vs HE7
  • Will The Carrier Insure Your Home Based Upon The Following
    • Age Of Home
    • Age Of Updates To Roof, HVAC, Plumbing, & Electrical
    • Prior Claims On The Home
    • Prior Claims For You
    • Presence Of Certain Animals
  • Is The Homeowners Carrier Financially Strong?
  • Which Insurance Company Is Best At Paying Claims?

Every home, and every home buyer are different…therefore the Best Home Insurance Carrier for each situation is different!



What Homeowners Insurance Policy Form Does The Insurance Carrier Offer?

There are two main Home Insurance Policy Forms in North Carolina. 

The most common is referred to as the HO3.  This policy form can be endorsed to provide Replacement Cost Coverage on both the Dwelling (the house) as well as the Contents (your stuff)

The HE7 Home Insurance Form is the other main policy type.  The HE7 is THE BEST POSSIBLE Home Insurance policy type you can purchase. In the simplest of terms, the HE7 Homeowners Form is the HO3 on STEROIDS!

Will The Insurance Carrier Provide Insurance To You?

As ludicrous as this may seem, not every insurance company will offer insurance to every person and property.

When Determining the Best Homeowners Insurance Carrier for YOU…making sure the Insurance Carrier will actually provide a policy to you matters!

All Insurance Carriers LOVE to insurance homes that are Brand New for home buyers that have perfect credit and have never filed an insurance claim.

Unfortunately, the percentage of cases that match those parameters are extremely low.

Is The Homeowners Carrier Financially Strong

The financial strength of the insurance carrier is often mandated by your lender.  The Loan Company sets certain minimum standards that the insurance carrier must meet!

These are minimum standards, so make sure you are dealing with a Carrier that is A Rated By AM Best or Demotech Rating Services.

Which Insurance Company Is Best At Paying Claims?

How an insurance carrier pays claims is the TRUE test for a Homeowners Insurance Carrier.

While you can look at carrier reviews, it is important to know that MOST insurance carrier reviews are left by people who have had a BAD Experience.  Therefore, most every carrier you research will have bad reviews.

Assuming you are dealing with an Independent Insurance Advisor, ask the advisor which carrier he or she uses personally!

You may find that one insurance carriers provides a lower premium than another carrier, but the claims service is poor!



What Information Is Need To Get A North Carolina Homeowners Insurance Quote?

The information needed to get a quote for home insurance for home buyers is simple if you know ahead of time.

Some Insurance Agents and Insurance Carriers will tell you that if you give them 10 to 15 minutes and a few pieces of information…they can give you a home insurance quote.

While this may be true to a certain extent, the fact is that the quote you receive is likely to change GREATLY once you are ready to purchase the policy and close on your home.

Typically, you will not find out about this increase until you are sitting at the closing table and can’t make a change!

In order to get a TRUE Home Insurance Quote, here is the information that is needed!

  • Full Names, Dates of Birth, And Social Security Numbers For The Owner(s)
  • Address of New Home
  • Address of Previous Residence
  • If The Home IS Older Than 15 Years
    • Roof Update Year
    • HVAC Update Year
    • Plumbing Update Year
    • Electrical Update Year


Who Has The Cheapest Home Insurance In North Carolina?

There is not ONE Insurance Carrier that has the Cheapest Home Insurance For Home Buyers In North Carolina.  Every Home Buyer and Home are different. 

However, there are a few tips & tricks that can make sure you are getting the best price on your Homeowners Insurance.

Increase Your Homeowners Insurance Deductible to Save Money

Make Your Deductible As High As Is Comfortable (increasing your deductible from $1000 to $2,500 Can Save You 8% – 10%

Bundle Your Homeowners Insurance With Other Policies To Save Money

Your Personal Auto Insurance & Personal Umbrella Insurance with the same carrier (Approx. 10% – 20% Savings)

Get Quotes At Least 10 Days In Advance To Save Money

Make sure you don’t wait until the last minute…many carriers have discounts if you quote your insurance 10 or more days in advance (Approx. 2% – 4%)

Security Systems & Smart Home Systems Can Save You Money

Have A Monitored Security System or Smart Home System makes your home safer, Insurance Carriers have discounts for this. (Approx. 2% -4%)



North Carolina Home Insurance Agency

If you are purchasing a new home, or you already own a home in North Carolina, fee free to reach out to ALLCHOICE if you have any questions about insurance for your Homeowners Insurance.  We are a local, independent insurance agency that gives you the best value to take care of all your insurance needs.  Contact Us today or request a Free Home Insurance Quote.

Homeowners Insurance FAQ

If you paid your insurance for the year, and decide to change home insurance providers before the policy renews, the insurance company must REFUND you for any UN-EARNED Premium.

Example

  • Home Insurance Premium = $1,200 ($100 Per Month)
  • You Cancel After Exactly 6 Months Of Coverage
  • The Total Earned Premium = $600 (6 Months X $100 Per Month)
  • Your Refund = $600

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Yes – Although your Homeowners Insurance Premium is paid via the escrow on your mortgage, you can change home insurance companies at any time your wish.

You must notify your mortgage company of the change and have your new insurance provider send the lender proof of your new insurance.

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No – you are not required by the insurance company to pay your home insurance through your escrow. However, some Mortgage Lenders make this a condition of the loan. Ask your lender for what options are available.

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Yes! Typically when you are buying a home, part of the closing costs you are paying includes the annual premium for your homeowners insurance.

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The standard Home Insurance policies provide coverage for a few major things

  • Property Damage To Your Home (the actual building)
  • Property Damage To Your STUFF
  • Personal Liability associated with your home and property

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