What Really Matters in Home Insurance April 16, 2025Six Key Insurance Considerations Before Buying a HomeWhen purchasing a new home, it’s important to consider more than just its curb appeal and square footage. Certain features and conditions of a property, such as the roof, plumbing, and flood risk, can significantly impact your insurance options. These factors can affect your coverage, premiums, and even whether a carrier will insure the home at all. Before making an offer, it’s crucial to understand how these elements might influence your homeowner’s insurance. Here are six key factors to consider.1. Roof age The newer the roof, the better the rate. Insurers will also flag roofs that are over 15 years old. It might be at greater risk of water intrusion, deterioration, or storm damage. Some insurance companies won’t insure aging roofs at all or add a percentage deductible for wind and hail losses. 2. Roof material type Cedar shake roofs look nice but can lead to trouble. Although they look impressive, cedar shake roofs pose significant fire danger, have higher maintenance costs, and are more expensive to repair. These make them harder and costlier to insure than asphalt, tile, or metal roof options. There are alternative options, such as Cedur, that are fire-resistant and resemble wood shake. 3. Flood risk and water damage Ask about the home’s loss history and if it’s in a flood zone. If the home is located inside a flood zone, you’ll need to purchase flood insurance at an additional cost. Additionally, consider that previous water damage claims are a significant red flag for underwriters. Get the details from the seller: What happened? Was it professionally cleaned up? What precautionary measures were implemented? Transparency is critical to avoiding surprises during the underwriting process. 4. Systems updates Has the home been modernized? For homes more than 20 years old, insurers typically request updates on key systems, including electrical, plumbing, and HVAC. Aging systems can pose a greater risk of fire or water damage and affect insurability.5. Policies for safety features = credits Improvements that save you money: Some homes with safety and risk mitigation tools may be eligible for premium discounts. Ask if the property includes: Central-station-monitored fire and burglary alarm Automatic shut-off device for water Whole-home generator Security cameras 6. Purchase price versus replacement cost Your replacement cost differs from the purchase price. The price you pay for a home and the cost to insure it are often two very different numbers. Market conditions, including location, comparable sales, and the balance of supply and demand, influence real estate appraisals and purchase prices. In contrast, your home insurance policy is based on replacement cost, not market value. The replacement cost reflects what it would take to rebuild your home from the ground up in the event of a total loss. Insurers consider: Square footage Local construction costs Interior and exterior features Materials and architectural style Many insurance companies will also conduct on-site inspections to validate these details and ensure that your coverage accurately reflects the cost of rebuilding. Understanding this distinction helps avoid underinsurance. At CAC Group, we are committed to serving homebuyers in a better and smarter way and stand ready to assist you in your home-buying process.For more information contact:Margaret Ann PyburnExecutive Vice President/Producer/Manager mpyburn@cacgroup.comDiscover CAC Group’s Personal Lines PracticeRecommended for youCAC Group receives the 2025 Spirit of Hope Award from Mile High United Way.AwardsCAC is honored to receive the 2025 Spirit of Hope Award from Mile High United Way. This recognition reflects our… – July 15, 2025 Read moreCAC Group Ranks #35 on BI 2025 Top 100 U.S. Brokers ListAwardsCAC Group is ranked #35 on the Business Insurance 2025 Top 100 largest U.S. brokers list – up one spot… – July 10, 2025 Read moreCAC Specialty Names John Hohlt as EVP, Surety Practice LeaderNewsDENVER (July 9, 2025) – CAC Specialty, a leading insurance brokerage and advisory within CAC Group, appointed John Hohlt to… – July 9, 2025 Read more
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