Buying a New Home

Just got pre-approved for a home loan?  Congratulations! That’s a huge step in life – and it takes you so much closer to living the American Dream!

Finding and buying a new home is as exciting as it is stressful: The purchase of a home is a huge undertaking that requires a good deal of forethought and research. But once the fun part of finding your dream home begins, you’ll find yourself spending evenings and weekends driving about town with your real-estate agent, and wandering through what might become your home. And at night, you dream about paint colors and furniture arrangements…

When you find it, you know it. And then everything happens quite fast:  Your agent might help you sign the paperwork, you put in an offer, and then you wait, chewing nails, to hear back whether it was accepted. “Hurry-up and Wait” is probably a good way to describe it.

Insurance may not be your first thought when you start thinking about buying a house. But don’t let it be your last! Call your team at NorthEast Insurance Services early-on to avoid unpleasant surprises and save money. We can help you make this process as smooth and stress-free as possible. Simply follow this short checklist of house-buying tips that you should be aware of, from an insurance point of view:

Choose your own insurance

Your offer was accepted and now the real paperwork begins. Who would have thought that would be so many documents to produce, papers to sign, and questions to answer? When your broker assures you that she can take care of the rest, it’s easy to agree. 

It’s a couple of months after you’re moved in that you have the peace of mind to take a closer look at the papers… and discover that your homeowner’s insurance rates are high. Very high! To say the least.

Just like property taxes have become commonly rolled into an escrow account and made part of a mortgage payment, so have homeowner’s insurance payments. Every lender requires that you have homeowner’s insurance in place. But that doesn’t mean that your mortgage company has to determine your insurance!  

We can help you find the right protection at the best rate for your new home. All you have to do is get us involved early. First, think about the questions below. With these important points in mind, we can process everything much faster when the closing date comes. Keep in mind that deadlines are always tight in the mortgage business.

How far is the nearest fire station?

You’ve always dreamed about a house in the woods. Kind of out there, away from all the hustle and bustle. And you found it, the perfect home, on a perfect 5-acre lot, not too far away… but far enough.

However, as you receive your homeowner’s insurance statement, you swallow hard. The house isn’t that big… actually, it’s about the same square footage as your previous house in the suburbs. So why did the rate increase?

The distance of the nearest fire station has an impact on your homeowner’s insurance rates. The further away the nearest fire station is located, the higher the rate. This makes sense, in a way: If, heaven forbid, you ever had a fire, every second counts. With no fire department nearby, the risk for a major or total loss of your home is much higher. And insurance companies charge for higher risk.

Just a piece of information to be aware of as you search for your dream home. For detailed rate quotes and more information about potential insurance rates for a house you’re looking at, just give us a call. We are here for you!

Don’t get bounced by a trampoline (or pool)

Now this house is really great! Not only does it come with a big yard and a swing set, but it also comes with a trampoline! The kids would love it!  Unfortunately, the backyard isn’t fenced, but… well… a fence could be added later, plus the row of trees provides some privacy.

This doesn’t sound bad at all, does it?

Unfortunately, from an insurance standpoint, it does. There are an estimated 3 million trampolines in US backyards, and injuries caused by trampolines are steadily on the rise, averaging over 240,000 medically treated injuries every year. Over 180,000 involve children aged 14 and younger. Severe spinal cord and head injuries abound.

A trampoline is considered an “attractive nuisance”. Most insurance carriers have recognized the dangerous risk exposure that comes with a trampoline. In fact, the extreme danger associated with trampolines is exactly why we do not currently offer insurance for trampolines. Therefore, for obvious reasons we do not recommend getting a home with a trampoline.

Even if you and your loved ones manage to use the trampoline safely, consider this: If the trampoline is located on your property and somebody – invited or not – gets injured while using it, you will be held responsible for the damages. That may mean many years of medical payments, or worse.

Swimming pools are also considered “attractive nuisances” and are treated similarly. Please ask us if you have any questions about buying a home with one of these attractive nuisances.

Part of a Homeowner’s Association? Check your Association’s Master Policy.

Living in a homeowner’s association can have its pros and its cons. But fact is that more and more condo, town-home, and other communities are bound together by a Homeowner’s Association. For each homeowner, that usually means an annual fee.

What does the homeowner’s association have to do with your insurance? Quite a bit, actually: From an insurance standpoint, if anybody got injured on the association’s joint property, such as, for example, a walkway or a playground, the association would be held liable. That’s why each homeowner’s association has a Master policy in place. The question is: What does the Master policy cover?

Some Master policies don’t provide high enough protection, so if a loss occurs that exceeds the policy limits, each homeowner in the association will share an equal part in the liability. In that case, you may be required to pay a share of hundreds or even thousands of dollars. 

If you don’t have the right protection on your homeowner’s insurance, that money would need to come out of your pocket. Luckily, your homeowner’s insurance can be adjusted to provide you with adequate protection. We can help you with that. Give us a call!

Located in a flood zone? You will need flood insurance.

Isn’t the sound of water one of the most soothing? Whether it’s rainwater drumming on your window, waves crashing on the beach, or a stream babbling away… Not to mention the view! To look out the window over the expanse of the Jersey shore is priceless.

A house near a river or the beach is a dream for many. But if that dream home is located in a flood zone, your lender will require you to have flood insurance in addition to your standard homeowner’s insurance policy.

Even if you don't live near a beach or river, the truth is that floods can and do occur everywhere in the nation that it rains. That means you don’t have to live in a flood zone to suffer a flood loss. A flood is defined as a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mud-flow. Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall. And flooding is not covered on your homeowners insurance.

So get a quote from us. We specialize in all your personal insurance needs and can help you with your flood insurance. Because sometimes, when it rains, it pours.