Connecting you to Insurance and Risk Management Resources About HUBSign-upSearch

Include Insurance Protection When Calculating New Home Costs

Whether you're buying your first home, relocating to a new community or simply searching for the home of your dreams, it's important to include the cost of insurance in what is likely to be your largest financial investment.

Too often, insuring your new home is the last thing on your mind, but it shouldn't be. By making affordable insurance protection a factor in your decision to buy a home, you will help ensure that all goes smoothly on the day when you finally pick up the keys.

Here are some points to consider when it comes to homeowner's insurance:

Check Your Credit Rating

A good credit rating not only helps you obtain a mortgage at a competitive interest rate, it may also qualify you for a discount on your homeowner's insurance. Before you begin shopping for homes, get copies of your credit reports and make sure they are accurate. You can do this by going to If your credit rating is not as good as it could be, take steps now to improve it.

Get a CLUE Report

While you're at it, get a copy of your CLUE (Comprehensive Loss Underwriting Exchange) report. CLUE is a database that allows auto and homeowner insurers to exchange information about property loss claims. Like credit reports, you're entitled to one free copy of your CLUE report per year. To request one, go to  

Make sure your CLUE report is complete and accurate. Keep in mind that you can't get a report on a home you don't yet own. Ask your real estate agent to obtain a report for any property you're considering.

Where's the Fire Department?

One factor that impacts homeowner's insurance is the proximity of the fire department. Homes close to fire hydrants also cost less to insure. An adequate water supply, trained firefighters and ample equipment are all important aspects of determining homeowner's insurance rates. If you're considering a home in the country far away from the nearest fire station, you can expect to pay more for insurance.

Up on the Roof 

Carefully check the condition of the roof on any home you are considering and ask when it was last replaced. A new roof matters to insurers. Depending on the type of roof and whether or not it is fire and hail resistant, you may qualify for a discount.

Showing Its Age 

An older home can be charming and beautiful, but plumbing and electrical systems that have not been replaced or maintained can be unsafe. If you are considering buying an older home, find out how much it will cost to update these systems and factor it into the cost of ownership.

Muddy Waters 

Damage from flooding is NOT covered by standard homeowner's insurance. If you plan to buy a home in an area at risk for flooding, you will need to purchase separate insurance. Flood insurance is available from the federal government's National Flood Insurance Program (NFIP), which is serviced by private carriers, and from a few specialty insurers. For more information, contact your HUB broker. 

Shake, Rattle and Roll

While earthquakes are most frequently associated with California, they have occurred in 39 states and, like flooding, are not covered under standard homeowner's policies. Earthquake insurance is available from private insurers as an endorsement to a homeowner's policy and in California from the California Earthquake Authority. Cost differs widely by location, insurer and type of structure.

Blowing in the Wind

Although homes along coastlines are more desirable, they are generally more expensive to insure than those further inland. In addition, you are more likely to have a hurricane or windstorm deductible. Rather than a flat dollar amount, this deductible is a percentage of the cost to rebuild your home. Deductibles vary by state and range from one to five percent of a home's insured value.

Everyone into the Pool

If the house you're considering has a swimming pool or hot tub, you may want to consider adding an umbrella liability policy to give you added protection in case someone is injured on your property.

Before closing, consult your insurance agent to make sure you have enough insurance to completely rebuild your home in case of a total loss. Also, ask about additional coverage such as:

  • Replacement cost for personal possessions
  • Extended or guaranteed replacement cost for the structure
  • Building code upgrades
  • Sewer and drain back-up coverage
  • Inflation protection
  • Special riders for jewelry, collections and expensive items

To save money, take the highest deductible you can reasonably afford. Check on discounts for multiline coverage; smoke detectors; fire extinguishers; sprinkler systems; burglar and fire alarms; deadbolt locks and fire-safe window grates; upgrades to mechanical systems; earthquake retrofitting; and wind-resistant shutters.

Insurance protection is an important consideration when buying your new home. Your HUB broker can review your new property to determine the level of risk and help you arrange ample coverage.