As a real estate buyer, when you get ready to look for your new home, you start doing your homework. You start scouting out the neighborhoods you want to live in, you get a loan pre-approval from a lender, and you get a realistic idea of your price range. But don’t forget to make sure you can get homeowners’ insurance for that home you want to buy.
The President of the National Association of Realtors told a group of reporters that homeowners insurance premiums and the lack of available coverage could be a significant barrier to your owning your next home. You may have trouble is you do not have a credit history or if you already own a home where you have submitted claims for water damage.
The Comprehensive Loss Underwriting Exchange database holds insurance claim histories of owners and properties for five years. Then, insurance companies use this database in determining whether to insure you anre your property. So even if you have been a loyal insurance customer for a number of years, if you buy a house that comes with a number of claims agains it, you may not be able to get insurance if you buy it.
Also, some insurance companies are tightening underwriting criteria for potential policy owners and properties themselves. Some insurers are not renewing coverage for homeowners with poor credit or who file too many claims.
Bottom line: When you are thinking about buying that home in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos, be sure not to forget about homeowners insurance.