Is the Home Insurable?
When buying or selling a home, most people focus on the inspection, financing, and price—but there's another crucial piece of the puzzle that often gets overlooked: is the home insurable?
Whether you're preparing to list or gearing up to purchase, the ability to secure homeowners insurance is a major factor that can either keep your deal on track or derail it entirely. Here's what you need to know.
What Can Make a Home Uninsurable—or More Expensive to Insure?
It might surprise you, but seemingly simple details can become stumbling blocks for insurance providers. Common red flags include:
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Aging Roofs: Many insurers won’t write policies on shingle roofs over 15 years old, no matter the condition.
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Outdated Electrical or Plumbing: These systems raise concerns about safety, making underwriters hesitant.
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Vacant Homes: If the property is sitting empty during the sale, insurance may cost more—or be denied altogether.
Ownership Matters—Down to the Details
Ownership structure can also complicate the process. If the home is held in an estate, LLC, or trust, the insurance policy must be in the exact same name as the deed. Mismatches can delay closings or even void coverage if a claim arises.
Unique Features That Raise Insurance Questions
Swimming pools, guest houses, in-law suites, and even a history of insurance claims can all impact coverage eligibility and costs. These aren’t dealbreakers, but they should be addressed early in the process to prevent hiccups.
Don’t Forget About Flood Hazard Insurance
Flood risk is another important—and often overlooked—factor. Many buyers assume their standard homeowners insurance covers flooding, but that’s rarely the case.
If a home is located in a FEMA-designated flood zone, the buyer may be required to purchase a separate flood insurance policy. Even homes outside of high-risk zones can be affected by heavy rain, changing weather patterns, or nearby water sources.
Flood insurance can add significant cost to a mortgage payment and may even impact the buyer’s ability to qualify for financing. For sellers, it's wise to know your property's flood zone designation ahead of time and factor it into pricing and disclosure.
A quick check with your real estate agent or insurance provider can give you clarity before it becomes a surprise issue during underwriting.
Be Proactive, Not Reactive
Whether you’re on the buying or selling side—or managing both—doing a quick insurance check before listing or making an offer can help streamline the transaction. Proactively working with your agent and insurance provider ensures no detail slips through the cracks.
Need Help Navigating the Process?
At Royer Realty, we're here to make sure your real estate journey is smooth from listing to closing. From evaluating home insurability to connecting you with trusted professionals like Search2Close, we've got your back.
📞 Call us today at 937-592-7653 or visit www.royerrealty.com to get started.
Let’s keep your transaction on track—no surprises, just success.