Home-buying 101 homeowners insurance so homeowners insurance is often overlooked it's kind of like the thing that no one thinks about they're like oh yeah I'll get homeowners insurance how much can it be and it's something that I see become a problem a lot a lot in transactions especially in California where we've had so many fires you know certain areas.
Have flooded in other parts of the country as well where there's been huge floods and issues issues that make homeowners insurance more expensive so what I'm gonna talk to you about today is what I always advise to my clients so number one if you are shopping for a home even before you find the perfect home if you're looking in a certain.
Neighborhood or part of town I would get an insurance quote now you can't get an insurance quote based off the town but what you can do is you can reach out to a local insurance agent or go online there's a bunch of online websites and type in an address of a house that you like you don't have to love it you don't need to write an offer on it we're just.
Trying to get a ballpark okay so type in the address see what comes up now if it comes up that it's not insurable well that's a red flag that tells you hey look this may be high fire it may be high flood I need to talk to a local agent so then at that point I would call a local agent and get a quote just say hey I'm thinking about buying.
This house but I wanted to get a homeowner's insurance quote now that will give you an idea of what you need to prepare for and it helps me as a lender qualify you properly because what can happen is if all of a sudden let's say I qualify you for two hundred thousand dollars and I'm assuming that homeowners insurance is fifty dollars.
Now I'm just assuming that based off the loan amount I'm not assuming it based off the area there are specific areas that I'm incredibly familiar with where I'll just put a ridiculous number and it's high because I know it's gonna be high but it's pretty tough to nail areas down because sometimes it's like two streets are really high two streets.
Aren't it really depends so where I can have an issue as the lenders let's say I qualified you thinking it was going to be $75 and oh my goodness it's fire and it's flood your homeowners insurance is $500 a month yeah that can happen I mean a lot of people think wolf I'm buying a hundred or two hundred thousand dollar house it can't be that.
Much there are areas in the country where the homeowners insurance is more than the property taxes seriously seriously so you really want to know upfront that piece especially if your payment sensitive a lot of people say to me well I need the rate to be this so that I have my payment be this and I'm always like that's great.
Get a homeowner's insurance quote because that is a moving target I can't control you can't control and it's important to figure out what it is so we can try to meet your payment goal okay so I would get a quote before you write an offer and once you do find that house and you're ready to write an offer I would get it quote again and I would.
Find out hey what is it going to be now if you haven't done these steps in your alreadying contract get your homeowners insurance quote on day one I ask every single borrower I work with can you please get your homeowners insurance quote on day one and the reason is once again in certain areas the homeowners insurance may be so expensive they a.
Don't qualify or B they don't want to buy the house because sometimes the insurance can be more to the point where it makes the house unsellable so you really want to be on top of that because with what we've seen going on with the climate and all the dramatic weather across the country homeowners insurance premiums are skyrocketing.
So please shop your homeowners insurance quote upfront I would talk to a couple different people so for instance a lot of people assume well if I bundle it with my car I'll definitely get a huge discount not necessarily so you want to make sure you get a couple different quotes you know be realistic about your deductible a lot of people go for the.
Lowest deductible possible or the insurance people just go oh it's a first time home buyer we'll offer them the lowest deductible no I wouldn't necessarily do that look at your finances look at your picture but you know I would do a higher deductible personally I have a pretty darn high deductible and the reason is.
I'm not gonna put a claim on my house unless it's something I can't write a check for and the reason is is that when you make a claim on your house it does affect you I don't care what anyone says because some insurance people are like it doesn't affect yeah it does it totally does because I see the aftermath of it all the time I have the clients.
That are like oh this is a terrible story so I had this one client I love her she's so sweet and she made a claim on her but she called her insurance agent cuz the suitcase had been stolen out of her car and the insurance agents like oh no worries let's put a claim on your house he it has coverage okay so she does that then someone drives into.
Her house I'm not even kidding drives into her house and so sure insurance has to work with that insurance to get the repairs handled it's not her fault someone drove into her house and then because someone drove into her house it triggered some issues with windows so she made claim for that as well okay her insurance agent helps.
Her with all of this then they drop her yeah the insurance company dropped her they're like we can't insure you anymore in by bike and she ended up in a position where no other insurance company would insure her except for this really expensive insurance so her insurance went from a thousand dollars a year to eleven thousand dollars a year.
Yeah eleven thousand dollars a year for three years you know she finally has it down not to where it was before you know and it's funny because we talked about it and she's like oh my god I never would have claimed the suitcase and the other thing she couldn't control but it's one of those things where it's just like be really aware of the fact you.
Know what can make an insurance person drop you and what can happen if that happens so I always do a higher deductible just because unless that's dramatic I'm not I wasn't like call and ask for anything something else to consider when you're looking at insurance is cheaper is not always better.
So once again depending on where you are in the country you may want to go with an insurance provider that is more expensive but that gives customer service so that if there is a disaster you have extra been it's so for instance you know and I'm using California a lot but I live here so I apologize so for my house you know.
I'm in a fire territory I I'm in Sonoma County in Sonoma County if you saw the news we had some really terrifying fires I got evacuated last year for close to three weeks it's scary it's really scary and I have chub for my insurance and I love them deeply they're not the cheapest in town in any any way shape or form but I can tell you that when I was.
Evacuated I could see on the cameras at my house that they were coming by they were covering the vents so I didn't get smoke damage they would call me and give me daily reports they had fire trucks throughout the area to protect the homes you know and we're seeing a lot more of that it's not just Chubb that has the fire engines that come out and it's not.
Like you're guaranteed it you know what they're trying to do as an insurance company is they're trying to they're trying to save money it's cheaper for them to have fire trucks out near where fires are you know to stop assets burning down then to let them burn down because a lot of people go oh only rich people know like insurance companies.
We're seeing this across California you know I think State Farm had trucks out USAA is known to be fantastic in these circumstances when my friends got really bad smoke damage because they had left a window open and USAA was great they have new carpets they had to redo the walls and they took care of that they really stood by they stood by them which is.
Important and that's important so when you're looking for a home insurance company besides the cost make sure you look at the service and what they'll do if something goes wrong so I would look at reviews and if you see something that's like this happened they they totally you know hosed us if you see a consistent thread like that just run.
Away because if everything if something goes wrong with your home you want help you need someone to be nice you need someone to take care of it you need a pro you don't need someone that's gonna put you through loop Haute loopholes and bureaucracy to try to save a buck so I hope this has been helpful please get your homeowners insurance quote up front.
Try to get it within the first week because I'm telling you guys I see this when people don't do it and it's always at the end they're like oh my god the insurance is $100 more than I thought it would be a month yeah that's why we told you to get it the first day so please get your homeowners insurance quotes if you have.
Questions comments call me if you need a loan I'm licensed in at this point a lot of states so check the states I'm licensed in I hope to have all 50 by April so fingers crossed thank you for watching