Buying a new home?
The various insurance and warranty products can be confusing!
There are various different forms of insurance you can require when buying a new house:
1. Homeowners Insurance: This insurance type protects against loss or damage to your house and personal belongings as well as liabilities in the event that someone is hurt on your property. Home insurance often comes in the form of a combined Building & Contents coverage that covers accidental damage to the building as well as wear and tear issues and protects your home’s contents up to a specified amount.
2. Structural Insurance: Also known as a New Home Warranty or Latent Defect Insurance, this coverage is typically purchased by the developer or builder and given to the buyer upon completion. This insurance policy covers difficulties with water intrusion and structural flaws in the building.
3. Title Insurance: This kind of insurance guards you from problems that could occur with the ownership of your property, like hidden liens or mistakes in the public record. Although it isn’t usually taken out, you should talk about it with your conveyancing attorney to see if it is worthwhile.
To establish the types of insurance you require and the appropriate level of coverage, it is crucial to research the precise requirements set forth by your mortgage lender. You should also consult your insurance agent.
It is important to note that Home insurance policies typically do not cover latent defects, as they are considered to be the responsibility of the seller. However, some home warranty plans may cover latent defects if they occur within a certain timeframe after the purchase of the home.
It’s important to note that a home inspection can help to identify potential latent defects before you purchase a home, but it’s not a guarantee that all issues will be discovered. There is a legal obligation for the seller to disclose known latent defects or to have a property survey done before selling the property.
It’s also important to consider purchasing title insurance, which can help to protect you in the event that a latent defect is discovered after the purchase of the home, and the seller is unable or unwilling to make repairs
When buying a new house, a home warranty could also be included. These can take the form of a service contract that covers the repair or replacement of certain household appliances and systems, such the plumbing and electrical systems, or they might contain a variety of warranties goods covering things like windows and appliances.
Home warranties can be purchased by the homeowner or occasionally provided by the seller to provide the buyer more peace of mind. They can be especially helpful for older homes because older systems and appliances may be more prone to failure.
Last but not least, it’s crucial to remember that home warranties contain restrictions and exclusions and might not cover every aspect of your house. Before buying a house warranty, it’s crucial to carefully read the contract and comprehend what is and isn’t covered. Additionally, you should confirm the reputation and financial stability of the organisation providing the warranty.
Compariqo is an specialist construction insurance intermediary and can assist you with all of your insurance needs, get in touch with us today and see how we can help.
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As an independent broking business, Compariqo is focused on arranging structural warranty and insurance cover for residential developments for our customers. As well as a suite of complementary insurance products to meet the demands of developers and SME builders, we can also source a wide range of finance solutions through our relationship with one of the UK’s top business finance specialists and their extensive panel of lenders, meaning we can cover all of your construction insurance and property finance needs.