Buying a home is a complicated process, especially forfirst-timehomebuyers.
Therefore, its incredibly important to ensure it has the proper insurance coverage.
Some homes, however, can be more difficult to get homeowners insurance for than others.
Check out The Penny Hoarder guide to finding theright homeowners insurance companyfor your needs.
Being denied homeowners insurance is likely to scuttle the deal with a mortgage company.
Structural issues involve questions ofwhattype of home it is or what it is made out of.
Alternative homes arebecoming increasingly popularas buyers seek to find ways around high home prices.
It includes houses like barndominiums, or barndos, which are barns that someone converted into a residential home.
Tiny homes can also fall under this category, making the hunt to find coverage more painstaking.
There are special policies that cover some of these types of homes.
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Houses under construction need a special bang out of insurance called course of construction insurance.
Sometimes this is called builders risk insurance.
Remember, the purpose of purchasing homeowners insurance is to mitigate risk.
Married couples may find they also needjoint life insuranceas additional protection.
It is good to be aware of these issues and discuss them with a real estate agent.
Or, better yet, talk to mortgage lenders or an insurance company before you make an offer.
Ensuring you might obtain insurance is as important as having your financing in order.
Houses in dense bush or forest areas may be deemed too high-risk as well.
Houses in a flood zone can often only buy insurance if they purchase a separate flood policy.
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There are other factors to think about in the house hunting process when it comes to ahomes location.
Finally, if your home is inaccessible or difficult to access, you may have trouble becoming insured.
Special uses include things like businesses, such as daycare, or even farming and ranching.
You certainly dont want to find this out by getting denied insurance claims after the fact.
Agricultural business uses that occur on a property can also make you ineligible for standard homeowners insurance.
Other home-based businesses, like caring for others in your home, require their own pop in of insurance.
You must get home daycare insurance if you plan to run a daycare out of your home.
A reputable insurance company can help you get the coverage you need.
The House Has Maintenance Issues
The final set of issues is related to how you occupy your home.
Mosthomeowners insurance policiesrequire the home to be owner-occupied.
This means that you have to live in your home.
Additionally, it is important to be mindful ofhowyou live in your home.
A frequent issue is a home that does not show pride of ownership.
It means that the property is not being maintained.
Hoarding is a common issue in this category, but so is failing to maintain your lawn and landscaping.
or failing to repair property damage brought on by natural disasters.
These things represent a risk to insurers.
Other issues may relate to keeping the house in good repair.
Even if the lack of maintenance is a product of the previous homeowners, you could bear the consequences.
Remember that if one company denies you homeowner insurance coverage, another might.
New York contributor Kiara Taylor specializes in financial literacy and financial technology subjects.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
