Consider the House History
Buying a house can be a better alternative than constructing one from the ground up because it saves you more time. However, you need to take a closer look at the house’s history before you buy it, because if the previous home owner had a lot of “bad history” with the home insurance people, then you’re going to inherit it as well.
It may seem not fair, but it is plausible. Dr. Robert Hartwig, chief economist of the Insurance Information Institute in New York said,
“A home with a history of burst pipes would reflect a plumbing problem that hadn’t been addressed, so the new owner would probably face a higher premium until the problem is corrected. That should be a homeowner’s incentive to make sure his or her home is in good working condition.”
You can request for more info on the house’s loss history by requesting for a Comprehensive Loss Underwriting Exchange or CLUE report. Ask for a homeowner insurer for assistance on this one.