4 Reasons To Talk To An Insurance Agent When Buying A New Construction Home

I’ve been working with several clients purchasing insurance from new home builders, and they’ve gone through the whole process. As they’re getting ready to close, wrap up the deal and move in, that’s when they’re getting their mortgage and looking at insurance for new construction homes.

Getting Insurance From New Home Builders

These large new home builder companies often have insurance companies that they work with. So I’ve got a lot of clients that reach out to me for a second opinion. Hey, Jason. Can we look at this? Can we review it? And there are typically two things that I know.

New Construction Homes Are Under-insured

One is it typically very largely under insure the property. The thought is that the property is brand new. There will be no problems, so they under-insure the property and give it a nice, low premium. But, unfortunately, it doesn’t cover the risk of what a loss would happen.

Two, when we have a brand-new home, a lot of times, that’s when we discover that things may break right away. Such coverages like service line coverage protect your pipes coming in and out of your house. So the house may settle right away. But, on the other hand, we may get a crack or a break in the first year.

Always Get A Second Opinion

If you don’t have proper insurance, you will end up paying from your pocket to fix the pipes. So, even if you have a new construction home, even if that home builder’s giving you a nice low insurance premium, it’s always good to get a second opinion. Make sure you’ve got the right coverage to protect that investment.

Hire A Local Independent Insurance Agent

Typically what these new home builders would like to do is they will give you a nice low insurance premium for the first four or five years while they don’t assume there will be any claims, and then they jack up the price to the point that you have to shop for it. So often, it’s better to start with a local independent agent. We’re here to help you. Reach out to me at Jason@303Insurance.com or 303-506-2755. Have a great day, and we’ll talk soon.