There has been another large storm in the Twin Cities region that may have affected your property. It is important to assess and make repairs to any damage as soon as possible. Here are a few insurance tips to support you if you are considering buying or selling now or in the future.
Buyers:
- Start by getting "pre-approved" for insurance and discussing insurability with a qualified agent. Factor in the prior 5-year home and auto claim history and be ready to bundle home and auto for the best options and pricing.
- With Minnesota's unique weather patterns, preparing for a higher home deductible and separate wind/hail deductible is essential.
- Give special focus to the age and condition of the roof (10 years or newer is ideal), and have a quality roofer ready to inspect it. If your roof is cedar shake, expect insurability challenges and increased insurance costs.
- Document the cause and remedies of any home claims in the past 5-6 years (seller’s disclosures don’t always elaborate enough).
- Be prepared for claim "mitigation" technology that may be required (e.g., automatic water shut-off systems).
- Give as much time as possible for insurance companies to underwrite the new home plan.
Sellers:
- Make your house as insurable as possible by verifying the age of the roof (less than 8 years is not enough).
- If the roof is over 18 years old, be prepared for a discussion on the value of replacing it prior to closing (not just discounting the price).
- List the age, updates, and condition of utilities and mechanicals.
- Document any prior claims in the past 5 years, especially water-related ones, and describe the situation and steps taken to remediate. If water damage could have been prevented by an automatic water shut-off valve, be prepared to install a system before closing ($2,000 to $6,000).
- Take the first step towards a secure and hassle-free real estate experience by following this checklist. Don't let insurance surprises derail your plans!
If you need support with this, reach out to me directly for my personal recommendations.
