The cost of home insurance in the East Bay is generally in the range of $1,000 to $2,000 annually. How much your actual insurance policy will cost is determined by the overall size of the house, the age of the house, the amount of updating to the various structural systems (such as plumbing and heating), the quality of the finish details (such as hardwood floors and custom cabinets), the location, and other factors that may vary from one insurance company to the next.
This link is educational in comparing how much insurance costs nationwide.
Once you know how much your new home insurance policy will cost, you can factor that figure into your overall budget for closing costs, along with loan fees, escrow fees, title insurance, and transfer tax.
Shopping for home insurance during an escrow is one of the steps a responsible home buyer should complete in order to make a sound real estate investment. An insurance policy is very important in protecting yourself from loss due to natural disaster, and if you are obtaining a home loan, your lender will not fund your mortgage unless an insurance policy is in place.
When shopping for a home insurance policy, most people start by calling the company that insures their current residence or car. You might also ask your friends or family about their insurance carriers, and/or check out my favorite tradespeople. Some insurance companies will not cover certain areas, and some have such strict requirements that none of our old East Bay homes will pass the test. Keep shopping. There is a policy out there for you.
This link may also be helpful in comparing the offerings of a handful of popular insurance carriers.
When you call an insurance company to obtain a premium quote, they may ask you questions you do not have answers for. The “minimum replacement cost” may be obtained from your house appraisal, and questions about wiring, foundation, etc. can generally be obtained from your home inspection report. I am also happy to assist in obtaining any necessary information.
Once you have chosen your policy, don’t activate the coverage — first, send the details to your lender, to make sure the policy fulfills underwriting requirements. Next, send the details to me, at least one week prior to your projected closing date. I will make sure the escrow officer confirms your new policy and activates your coverage as of the date you take ownership. Your first annual premium payment will be part of the master settlement that includes all of your closing costs.