First Time Homeowners

Who’s on your home buying team?
And have you created a “dream team”?

Insurance agents tend to be the most overlooked members of the home buying team, yet, they are the arguably the most important part of the home buying process.
  • If you are getting a loan, you will be required to purchase home insurance
  • After your closing date passes and the celebrations end, your relationship with your insurance agent will continue, whereas most often, your relationship with the real estate agent and lender you worked with becomes non-existent.
​The insurance policy you purchase or whether or not you listened or took advantage of the knowledge, expertise, and/or tools provided to you by an insurance agent may even make the difference of tens of thousands of dollars if you have a claim in the future.

At Sage Insurance Group, we love working with 1 st time homeowners because we love being able to teach how insurance works and how to use insurance as a financial tool.

Plus, since we work with a lot of first time homeowners, we have narrowed down a list of real estate agents, lenders, home inspectors, and other vendors who have consistently been recommended by our customers and work with many different niches. Contact us for a recommendation if you need one.

​The “New” Insurance Market

Your parents may have a lot of wonderful advice about buying a home and working with a lender. Even better, they may have great advice about maintaining your new home. As far as insurance is concerned, unless a person has a current insurance license-always get a second opinion.

The insurance market is not the same as it was 2, 5, 10 years ago. Policies cover different things, require different deductibles, and don’t even accept applications in certain situations anymore.

The best time to connect with an insurance agent about buying a first home is before you start visiting homes. Find out what to look for in the house you want to buy and if there are any things about homes that won’t fly with insurance companies. When you find your dream house, you’ll be in a better negotiating position.

​Picking your house

​Here are some tips that you may not have thought about:
  • Research nearby schools. Even if you don’t have kids. This affects your home values and taxes.
  • Never forget that it is all about the home value. Your house is not just about where you are going to be living. Your house is now an investment. Don’t forget that it is an asset that you own.
  • Look up local safety and crime statistics.
  • Map out how far of a drive it is to the grocery store or places like Target, a hospital, etc.
  • If you are a mom, don’t be shy about joining a community “moms” group on Facebook before buying a house. Do some light stalking about neighborhoods.
  • Consider the structure/bones of the home. Specifically- consider the roof. The younger the roof, the cheaper your home insurance is going to be and the more options you will have for companies that will want to offer you insurance.
  • Avoid any home that has knob and tube electrical. This is expensive to replace, but insurance companies do not like it.
  • Stairs that have more than two steps have to have railings. Make sure that safety issues are up to code before you try to buy home insurance!
  • Check for dead trees- especially if they overhang your house or garage. They will have to be trimmed!
  • How close are trees and bushes planted to the house? Remember, they have roots that grow down and out- meaning into your basement foundation. Those roots will push into that foundation and likely cause cracks at some point.

If there are problems like some of these- it doesn’t mean you shouldn’t love your house- it just means that you should make plans to correct them within 30 days of your purchase and/or negotiate for your seller to fix it before you close your sale.

​Yes, you need a home inspection.

No ifs ands or buts.
Period.
Even if your parents say you don’t.
Even if you don’t want to spend the money.
Even if your dad or uncle or dude down the street says that he can do the same stuff even though he isn’t an actual home inspector.
Even if other people in today’s market are not getting one.
Even if you do not make your offer contingent on it.

And attend the home inspection. Ask questions.

You can still purchase your dream home if it has problems. You’ll just have the list ahead of time instead of having a mystery. Plus, after you purchase your insurance policy, the insurance company will likely send their own home inspection team out to walk around the outside of the home for their own report.

The devil you know is better than the devil you don’t.

​Your home insurance

​Buying your first home is a huge decision and a major investment. Your hard work has finally paid off.

Now you need to protect it- because imagine how you would feel if you didn’t have any insurance and the day after you bought the house and moved everything you own into it there was some kind of misfortune.

No one wants to think about things that could take away their most prized possession.
Things like:
  • Heavy winds
  • Hail
  • Theft
  • Tornados
  • Fires

Additionally, your insurance policy doesn’t just protect the walls of the house. It protects the things you move into it as well. It also protects your money, in case you are sued for something (not vehicle related) and found to be at fault.

In order to get the best price

​In order to get the best possible price:
  • Always, always, always quote all your policies together and try to bundle your policies.
Yes, you’re super focused on the home buying business right now and the thought of moving your auto insurance is probably a headache you don’t even want to consider- but, is the “headache” worth a few hundred bucks?

Some insurance companies require a multiple policy bundle. Some insurance companies just provide a significant discount- on both policies. Which means that even if you think you are getting a great auto insurance price, it might be worth moving your auto insurance- plus, it is always good to have a second look at your coverages once you own a new asset and move “up” in the world.
  • Don’t wait to start your quote.
Many insurance companies offer a nice discount for customers who sign their policies at least a week in advance. They might also have other discounts based on when the policy is quoted or finalized. Days and weeks matter.
  • Have current renters insurance
You’re being judged by the insurance companies on whether or not you are a good risk. They are basically putting your information into the computer and it determines how likely you are to maintain your home so that it stays in good shape, if you are likely to keep people safe so you don’t get sued, how likely you are to pay your bill, if you are likely to commit insurance fraud, etc.

If you have been living in a duplex and have always had renters insurance, you simply look like you value protecting your things on a higher level than if you have never had renters insurance. If you live with your parents and have renters insurance because you are 23 and have $20,000 worth of specialized podcasting equipment in your basement “apartment”- you look more responsible than if you don’t. The $15 per month investment will save you more than you put in when you go to buy home insurance later on.
(262) 737-5080
N27 W23960 Paul Rd
Suite 5
Pewaukee, WI 53072
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