The basics
Even if the house seems exactly what you’re looking for, there are a few things you must check as soon as the first visit. For example, what year was the existing roof done? Is this work covered by warranty? If so, can the warranty be transferred to you as the new owner? These are just some of the questions to ask the previous owners to help you know how well the building has been maintained. The dates when things like the windows, the electrical panel, the water heater and the septic system were installed are other crucial pieces of information. Since all these items need to be replaced after a certain period, knowing their age will help you assess the work to be done in both the short and long term. It will also protect you against potential breakdown. These are all important parts of the equation.
The inspection
Made up your mind to buy? To avoid overlooking anything, call in a building inspector before you sign on the dotted line. They will make sure there are no obvious problems and suggest work and areas for improvement. Share this pre-purchase inspection report with your insurance broker who can then advise you about the work to be done to reduce headaches down the road and maybe even decrease the cost of your premium!
The right insurance policy
Mortgage lenders typically require prospective homeowners to purchase home insurance as soon as they take possession of their new home. The reason is simple: since the property is being given as collateral to the lender, its assets (and yours) must be adequately protected.
Home insurance covers the replacement of all your belongings, the as-new costs of rebuilding, and your civil liability (if a guest is injured in your home, for example).
In general, there are two types of coverage available. Basic (or specified risk) insurance offers protection against a variety of possibilities, such as break-in, fire, vandalism and some kinds of water damage. Comprehensive insurance offers more extensive coverage. However, some risks are excluded and require an endorsement (additional coverage). For example, this is the case for damage caused by water infiltration through the roof. In all cases, an insurance broker can guide you in making the right choices.
