I'm about to make an offer on a new home, what are the insurance issues I need to know about?

By: Tamara Champagne

Is This House Even Insurable? What You Should Know Before Making an Offer

When you’re getting ready to make an offer on a home, your mind is usually in a few places…

Do I love the house?Is the price right?Can we see ourselves living here?

But there’s another question that almost nobody asks—and it can completely change the outcome of the deal:

Is this house even insurable?

It sounds like something that would be obvious, but it’s not. And the reality is, we see situations all the time where this becomes an issue after someone is already under contract.

At that point, it’s stressful. Decisions feel rushed. And sometimes, deals fall apart. So let’s slow that down a bit and walk through what you should actually be thinking about before you make an offer.

It starts with insurability

Most homes will qualify for standard insurance without any issues. But not all of them. Sometimes a home has had multiple past claims. Sometimes there are underlying issues that increase the risk. And sometimes, from an insurance company’s perspective, it just doesn’t meet their guidelines.

When that happens, a few things can occur.

Insurance might still be available—but it could be more expensive or come with limitations. In other cases, a company might require certain repairs before they’ll even agree to cover the home.

And in more extreme situations, coverage can be difficult to find altogether.

Here’s why that matters more than people think:

If you can’t secure acceptable insurance, your lender may not approve the loan. So this isn’t just about insurance—it can impact whether the purchase even goes through.

The roof tells a big part of the story

If there’s one thing we look at right away, it’s the roof.

A newer roof—generally within that 0 to 15-year range—usually puts you in a good position. Insurance companies are comfortable with it, and things tend to be straightforward.

Once a roof gets beyond about 15 years old, though, the conversation starts to change.

Now carriers are asking more questions. You might see higher premiums. Some policies may limit coverage. And in certain cases, the expectation is that the roof will need to be replaced sooner rather than later.

As you get closer to that 20-year mark, it can become even more challenging. Some companies may not offer full coverage at all until the roof is replaced.

And that’s where buyers get caught off guard—because now you’re not just buying a house. You may also be taking on a $10,000 to $15,000 project much sooner than expected.

Maintenance matters more than you think

You can learn a lot about a home just by how it’s been maintained.

When we look at a property from an insurance perspective, we’re not just looking at what’s there today—we’re trying to understand how likely it is that something goes wrong in the future.

Signs of wear, outdated systems, or general neglect all tell a story.

To an insurance company, those things increase the likelihood of a claim. And when risk goes up, so does cost—or scrutiny.

That might show up as higher premiums, required repairs before coverage is approved, or limitations in the policy itself.

It doesn’t necessarily mean you shouldn’t buy the home. It just means you should understand what you’re stepping into before you commit.

Location can quietly change everything

This is another one that surprises people.

Two homes can look nearly identical, be priced the same, and even sit in the same general area—but one detail can make a big difference: whether the property is in a flood zone.

If it is, your lender may require flood insurance in addition to your standard homeowners policy.

That means you’re now carrying two policies instead of one.

Sometimes that added cost is relatively minor. Other times, it can be several hundred to over a thousand dollars per year. And when you break that down monthly, it can shift how comfortable the payment feels.

Again, it doesn’t automatically make it a bad decision—but it is something you want to understand upfront, not after you’ve already fallen in love with the home.

This is really about clarity

At the end of the day, this isn’t about trying to scare you away from a house.

It’s about helping you see the full picture.

The best buyers aren’t the ones who rush—they’re the ones who understand what they’re getting into.

When you know:

• what the insurance will look like

• what risks might be involved

• and what costs could be coming down the road

…you can make a decision with confidence.

And sometimes that means moving forward. Other times, it might mean taking a step back.

Both are good outcomes—because both are informed.

A simple next step

Before you make an offer, it’s worth taking a few minutes to look at the home from an insurance perspective.

It doesn’t have to be complicated.

In fact, most of the time, a quick review can surface anything you should be aware of right away.

If you’re not sure what to look for, that’s exactly what we help people with every day.

Because the goal isn’t just to buy a house.

It’s to make sure it’s the right decision for you—without surprises later.