New or Used? Homes That Affect Your Homeowners Insurance

By Rafael Onak, InsuranceAgents.com Staff Writer

Like all insurance premiums, how much you pay for homeowners insurance relies on a number of factors. One of the most obvious, if not important, determinants is the type of home you intend to live in. Part of what makes a good choice for you depends on the advantages and disadvantages of the two different types of property: new houses and resale houses. Each possesses different characteristics, but if you’re an individual looking to find competitive homeowners insurance quotes, you might want to consider one over the other.

Before jumping to the Web to compare homeowners insurance quotes, make sure you familiarize yourself with the different types of property. Insurance companies offer different homeowners insurance quotes for each one, so let’s take a look at them in more detail:

1. New house. A new home is often called a “tract house,” one housing unit within a larger housing development. Since zoning laws often allow new houses to be built very close to other houses, you may end up with little lawn space and even less privacy. The good news? “Tract houses” are never built using toxic materials such as lead paint and asbestos, lowering your homeowners insurance quotes.
2. Resale house. A resale home is a property that has been previously owned. Although resale houses are often less expensive than new houses, they are much more difficult to maintain and are considered “high risk.” Flooded basements and mold are common, as well as damage from termites and other pests. If the resale house is older than 20 years, don’t expect to find any competitive homeowners insurance quotes easily.

House of Cards

You can tell a lot about a house by just looking at it, especially how competitive of homeowners insurance quotes it will bestow. But before purchasing the home, you should always have it inspected to avoid any unexpected surprises that can cause your homeowners insurance quotes to increase. Talk to your real estate and homeowners insurance agent to decide what type of house best suits you and your financial situation. To find a local agent use our online quote service located here.

Published: Wednesday 26th August 2009