Home-Buying Insurance Hack

One way to save money when buying a new home.

I was recently quoting a homeowners insurance policy for a new customer. The house she is purchasing has a roof that is coming up on fifteen years old.

As you might imagine, insurance providers see nothing but dollar signs they’ll have to pay out when they see a roof of that age on an application.

More often than not, the policies on these roofs end up having extremely high premiums. Or worse, providers won’t extend coverage at all.

So, what can you do?

I did some investigating.

If you decide to buy a home with an older roof (fifteen years old or older), instead of insuring the roof’s entire replacement cost, you can instead opt to insure the Actual Cash Value (ACV) for any wind and hail damage to the roof.

In the case of my new customer, the premium rate was 17% less when she chose the ACV option versus the replacement cost coverage.

Is this the route you should take? It all depends on your rate tolerance and premium budget. But it may be a great way to save money on your homeowners insurance policy.

Give your agent a call today. Or, reach out to us at The Rhoads Group. We’re the insurance experts, and we’re here to help.

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Are you ready to save time, aggravation, and money? The team at The Rhoads Group Insurance Agents is here and ready to make the process as painless as possible. We look forward to meeting you!

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