One of our amazing Buyer Agents found your lovely home in the Greater Houston Area and you have no clue what to expect next. You hear your Loan Officer asking you if you have procured home insurance and you look puzzled. If you don't select a home insurance, your lender will select one before closing. Buyers don't realize that insurance (or lack of) can cause a deal to go south. It is important to compare insurance plans and make sure you are comparing apples to apples to be fair to you during your Option Period (also known as Due Diligence Period).
Here are five insurance tips when buying your home in the Greater Houston Area:
1. Find an Insurance Agent that you can TRUST
a. Your Insurance Agent becomes a part of your Home Buying Team!
b. Find someone who is knowledgeable about property insurance in Houston
c. Ask friends and family for recommendations on Insurance Agents in Houston
d. Compare YOUR EXISTING insurance company for rates
2. Setup a Strategy with your Houston Insurance Agent:
a. Have your Insurance Agent provide you with a CLUE report
b. Ask your Insurance Agent about Flood Zone Determinations
c. Inquire about any previous and existing insurance claims on your new Houston home
d. Is Flood Insurance mandatory for your new home? Ask questions!
3. Shop for Homeowner's Insurance DURING your Option Period (Due Diligence Period):
a. Your Option Period grants you the UNRESTRICTED Right to Terminated your Home Purchase
b. NEVER assume that you can get insurance coverage
c. Your Insurance Rate can be affected by any credit issues
d. Homes that have previous claims can also affect Insurance Rates
d. Make sure to REVIEW the Seller's Disclosure Statement and ASK Questions!
4. There are DIFFERENT Coverages for Homeowner's Insurance in Houston, TX
a. Two types of coverage “All-Risk” and Named Perils for the dwelling
b. Most Insurance Agents in Houston DO NOT recommend Named Perils/HO-A/Texas Fair Plan unless it is truly the last resort
c. You wouldn’t consider Named Perils on your car, why would you on your home?
d. To compare available Home Insurance policies: http://www.opic.state.tx.us/hoic.php
5. If you live in Houston, We ALWAYS Recommend Flood Insurance
a. Ask your Houston Insurance Agent about Flood Insurance
b. Harris County Interactive Flood Maps: https://www.hcfcd.org/interactive-mapping-tools/harris-county-flood-education-mapping-tool/
About Edinson Properties:
The Edinson Properties Team at Keller Williams Realty is a dynamic and bilingual Real Estate Team specializing in the Houston Inner Loop and Luxury Real Estate Markets. With years of experience helping local buyers and sellers just like yourself, we know how to locate the properties that match your criteria and negotiate the best deals. IWe research and understand the latest market conditions as well as the recent real estate contract changes — so that you don't have to.