Ever wonder how much the insurance cost is on that home built in the 70's on stilts with a view of the water? You guessed it..... it's high! Well, higher than that home built in 2016 that is 8 miles inland.
We often get phone calls from excited future homeowner's of such a home and quickly hear the distress in their voice when we discuss the cost of hazard and flood insurance. Don't misunderstand.... there is absolutely nothing wrong with higher risk properties! We are simply saying that it is important to consider the cost of insurance when determining the affordability of a potential property. Below are some items that tend to increase the cost of insurance:
- Age of property
- Age of roof
- Wood frame construction
- Open foundations
- Proximity to the coast
- How the home is titled (personal name vs LLC)
Never hesitate to reach out to an agent at Galt Insurance Group to get some preliminary cost ideas on a home that you might consider. Don't get blindsided by the cost of insurance. Call Galt!