Home Insurance Evolution: What Buyers and Sellers Need to Know

By Rob Gintner

Rob assists people who want to ensure a smooth and efficient transition into a better space to call home, allowing them to embrace a more fulfilling lifestyle.

In the ever-evolving world of homeowners insurance, both buyers and sellers find themselves at a crossroads. Recent trends have seen insurance companies halt the writing of new policies in several states, though existing policies remain unaffected. This distinction is crucial for understanding the current insurance climate.

For homeowners in Minnesota and beyond, the lag between claim filings and insurance companies’ payout realization has resulted in significant losses. With insurance firms paying out substantially more than they’re earning, a reevaluation of policy rules and underwriting guidelines is underway. This shift signals a need for vigilance and preparation among potential home buyers and sellers.

For Buyers:

• Initiate conversations with insurance agents early in your home search to explore your options.
• Assess your auto and home loss history, as it influences your homeowners’ policy.
• Favor homes with newer roofs (less than ten years old) and furnaces (less than 20 years old). Request the home’s loss history and ensure any damage claims have been repaired.
• Combining home and auto insurance can be advantageous. Anticipate a minimum annual premium of $2,500 to $3,000.

For Sellers:

• Consider replacing roofs over 20 years old. For those under 20 years, documentation such as permits or receipts is key.
• Compile all documents related to the roof, furnace replacements, and insurance claim repairs.
• Include details of repairs related to claims, even if not covered by insurance.

As the insurance industry adapts to new challenges, both buyers and sellers must stay informed and proactive. By understanding these changes and preparing accordingly, you can navigate the market with confidence, ensuring your real estate decisions are both informed and strategic.

For more insights into real estate, homeownership, and navigating the insurance landscape, calling us or sending us an email would be a great way to reach out. With over two decades of experience, I’m here to share my passion and knowledge to help you make the best decisions in today’s dynamic market.