Colorado Springs Real Estate Contract Guide – Home Insurance Review
Insurance has become an increasingly big issue in Colorado Springs due to the increased wildfire activity (among other reasons) in our state. Just because a homeowner currently has insurance on a home, does not mean that you will be able to get a policy on that home….or if you can, at a reasonable rate. Properties that are in forested areas are increasingly hard to insure and a company may even limit insurability based on the construction materials used. A buyer wants to be sure that no fire mitigation is necessary and that they are provided with an actual insurance quote.
Timeline – Usually about 2 weeks or so for you to get your quote. But don’t wait, call your perspective insurance company right away and get more than one quote!
Colorado Springs Real Estate Buyers:
It is extremely important to have your insurance provider review the property with you and let you know:
- Is the property insurable?
- What will it cost to insure it?
- Does anything need to be done to the property before the company will insure it (fire mitigation for a tree’d lot, change roof, etc)?
- Is it in a flood zone? Flood insurance is required if it is and it’s crazy expensive (and kind of pointless in our state).
Colorado Springs Real Estate Sellers:
If a buyer can’t insure it, you can’t sell it. Just because you have insurance now, doesn’t mean a company will issue a new policy on your property. Have your current insurance provider review your home with you and find out if there would be any requirements if there were to be issuing a new policy on your home and take care of those items BEFORE you list it for sale.
If you are already dealing with a buyer and their insurance company has what you feel are outlandish recommendations, call a couple different companies to get a second opinion. If they are all telling you the same general thing, be sure to take any requests for mitigation seriously.
If you have a specific question not covered on this site, please contact me.