What advice would you give for first-time buyers looking for homeowners insurance in your state?
As a first-time home buyer, understanding what you are purchasing is imperative. Working with an independent agent who is knowledgeable and takes the time to educate the buyer will pay dividends for the home buyer in the long run. Your agent should not rush through the process. They should be thoughtful and take the time needed for every buyer type. Independent insurance agents are YOUR advocate, not the insurance company’s advocate.
How do regulations and laws in your state impact the amount or type of coverage a homeowner should buy?
One recent change that affects homeowners is the qualified immunity bill. Police officers who own or are purchasing homes should have a conversation with their agent regarding the bill and how it affects their personal liability, as they can be sued in civil court for damages. Insurance carriers now have to calculate this risk differently, which will increase premiums for many.
Are there any environmental factors homeowners should consider when selecting a home insurance plan in your state?
Purchasing a home that is in a low-lying area but might not necessarily be in a highly active flood zone should require some planning. The remapping of flood zones had immense financial consequences for homeowners close to water. Homes that had premiums for flood insurance under $1,000 annually shot up to over $10,000 in some cases. I know personally of one insured who pays over $30,000 a year just for flood insurance and is required by the bank he has his mortgage with. If the ocean water rises faster, we may see homes that will no longer be able to purchase standard insurance. They will end up in the excess markets, which is costly.
If you have any questions or would like to review your coverage, you can contact ACBI via email or at 203-259-7580.
