Homebuying can be an overwhelming process, especially in a seller’s market. Fortunately, with Prime’s customized insurance solutions and True Umbrella coverage, homebuyers can buy a home more confidently. As an insurance producer, you can partner with us at Prime Insurance Company to offer this insurance to your clients.
What to Check Before Buying a Home
If homeowners are in the market to buy a new home, there are a few items they may want to check before they make an offer.
- Roof: One of the most crucial parts of a home is the roof. A recently renovated roof may be a good sign, while an old roof with obvious signs of deterioration could lead to problems for the homeowner later down the road. Roofs that need a lot of work could be expensive to repair or replace. While this doesn’t need to be a deal breaker, the homebuyer should factor the cost of a new roof into the price of the home.
- Ceiling: Once inside the home, homebuyers should be sure to examine the ceiling in each room. Homebuyers should look for signs of water damage and cracks. Cracks in the ceiling could mean there is a structural issue with the home, which could be costly to repair. Qualified home inspectors can determine whether a crack may mean problems later on.
- Floors: Homebuyers should also pay careful attention to the floors. If there are cracks in the flooring, these should be noted. Homebuyers should also listen as they walk for any squeaky noises and note how the floor feels. If the floor feels squishy, for example, this could be an issue.
- Plumbing: Plumbing is another one of the most important elements of a home. Homebuyers should examine the home’s plumbing systems in the kitchen and bathrooms. If there are leaks, weak floors, or water stains nearby, this could mean the plumbing is in poor shape. Homebuyers should also be sure to test each faucet and shower to assess the water pressure. Any signs of mold should be flagged, as mold can lead to major health issues.
- Electrical: Homebuyers should also check out the electrical systems of the home. They should identify where the main breaker or fuse box is located and confirm whether they are easily accessible. Homebuyers should test the outlets, check for any loose wires, and test the appliances to be sure they work, such as microwaves, dishwashers, washers, and dryers.
- Smells: Finally, homebuyers should pay attention to the smells in the home. If there is an odd or unpleasant smell, such as sewage or gas, this could be a sign of issues with the property. Musty smells could also be a sign of water damage or mold, especially if the homebuyer also notices water stains.
The Dangers of This Market for Homebuyers
The current housing market is widely considered a seller’s market. This can mean homebuyers are at a disadvantage, as inventory is limited and competition is high. A seller’s market can lead to intense bidding wars and tempt buyers to forgo the home inspection.
A seller’s market means homebuyers should keep the following factors in mind:
- Limited inventory: The number of homes available is low, which means sellers are at an advantage when it comes to negotiating. Sellers can raise the asking price and may be able to sell the property as-is.
- Competitive market: Since there are fewer homes available, the competition for each home is higher. Buyers compete with others and may pay above the asking price to get their dream home.
- Skipped home inspections: To be more competitive, many buyers are skipping home inspections. However, homebuyers should still try to get an inspection, as neither home insurance nor liability insurance act as a substitute for this process.
How Liability Insurance Can Help Homebuyers
Homeowners need the right amount of coverage to protect their homes, which is often a homeowner’s largest investment and most valuable asset. Some homeowners require additional coverage beyond a standard homeowners insurance policy due to specialty risks and unique needs. This is where liability insurance comes in.
Liability insurance advantages include:
- Peace of mind with comprehensive coverage: If you are an insurance producer and you want to partner with us at Prime, you can offer homeowners greater peace of mind with comprehensive personal liability insurance coverage. With a custom policy from Prime, your clients can get several different types of coverage, such as animal liability, mobile home coverage, snowmobile coverage, personal property coverage, watercraft coverage, and customized specialty liability coverage.
- Customized coverage to give clients what they need: We break away from the one-size-fits-all philosophy that other insurance companies adhere to. Our customized specialty liability coverage offers protection to your clients for specific incidents outlined in their policies, which means we look for creative solutions to deliver the coverages your clients need. Additionally, we can fill gaps and overcome exclusions in your clients’ current insurance plans.
Weather Perils and Living in High-Risk Areas
Some areas are more prone to weather-related risks and perils, such as wildfires, hurricanes, and floods. While southern states are the most at risk of hurricanes, states on the West Coast are often at risk of wildfires.
Other weather-related perils to consider include:
- Floods: Homeowners who live in a high-risk flood area may be required by their mortgage lender to purchase flood insurance. In some cases, lenders may also require those living outside of high-risk flood areas to carry flood insurance, depending on topography and other factors. Every home is vulnerable to flooding, and neither homeowners insurance nor renters insurance typically covers damage from flooding.
- Wildfires: Wildfires can be catastrophically destructive, so if homeowners live in an area prone to wildfires, they need the right insurance coverage to protect them. A standard homeowners insurance policy should cover damage or destruction caused by a wildfire, including damages to the home, garage, shed, or belongings. Homeowners in high-risk areas should review their policies to ensure they are not underinsured. Policyholders should also consider optional comprehensive coverage on their auto insurance policy.
- Hurricanes: Homeowners who live in areas at risk of hurricanes should be adequately insured before hurricane season, which occurs each year from June 1 to November 30. While there isn’t a separate policy specifically for hurricane insurance, homeowners can purchase insurance that protects their homes from water and wind damage. Homeowners may want to purchase flood insurance and review their insurance policy to ensure it covers wind damage.
Benefits of Providing Liability Insurance to Homebuyers
If you are an insurance producer, there are a few benefits you can enjoy when you start providing liability insurance to homebuyers, such as offering clients protection for a wide range of homes and writing more business.
Protect a Wide Range of Homes
Your clients likely own a wide range of properties, including luxury homes, rentals, and vacant homes or land. Fortunately, when you partner with us at Prime, you can offer liability insurance to clients no matter what type of home they want to insure. Examples include:
- Luxury homes: Clients with high-value homes tend to need additional coverage to get adequate protection. When you partner with us at Prime, you can also offer coverage to clients with high-value homes for their luxury items or collectibles as well, such as art, antiques, jewelry, and firearms.
- Rental properties: Rentals can present a unique risk due to losses and property damage caused by tenants. If you have clients who are property managers or landlords, you can offer them customizable limits for tenant legal liability coverage, including liability limits for water, fire, and smoke damage.
- Vacant homes: Some clients may have vacant properties or land that they need coverage for. Vacant properties come with unique risks, and the right vacant property insurance can help protect homeowners against those risks. Property types we can insure include commercial properties, single-family dwellings, and multi-family properties. This coverage may also apply to other structures, such as sheds, decks, fences, and pools.
Write More Business
When you partner with us at Prime as an insurance producer, you can grow your business, expand your portfolio, take on specialty opportunities, and start writing more business. Since you can offer home and liability insurance for various types of homes, you can write more business for a greater number of clients.
Unlike with other insurance companies, there are no minimum product requirements. Our risk management and in-house underwriting teams work with policyholders directly and perform onsite risk management risks. With our direct claims handling, our in-house team of adjusters and attorneys can fight claims and frivolous lawsuits.
Contact Prime About Liability Insurance for Homeowners
At Prime, we offer customized coverage and insurance solutions to insurance producers like you so you can give clients the coverage they need when standard policies fail to meet the client’s needs. We treat every insurance producer as a partner with a hands-on approach to identifying unique solutions for each client’s specific needs. We are rated “A” (Excellent) by AM Best*, which means we are a trustworthy, dependable insurance company.
If you have clients who have been non-renewed, canceled, or declined, you can help them find coverage by partnering with us. Contact us at Prime today about liability insurance you can provide to homeowners.
*for latest ratings, access www.ambest.com
Last Updated on December 22, 2022.
Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.
