Most buyers focus on price, location, and condition. Insurance companies look at a very different checklist — and those details can impact not only coverage availability, but also monthly costs and closing timelines.
After guiding buyers and sellers across Gilbert, Chandler, Mesa, Queen Creek, Scottsdale, Phoenix, and Paradise Valley, I’ve seen transactions slow down — or surprise buyers — simply because insurance considerations weren’t addressed early.
Here’s what insurance providers pay close attention to — and why it matters more than most buyers expect.
Why Insurance Plays a Bigger Role Than Buyers Realize
Home insurance isn’t just a post-closing task.
Lenders often require:
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Proof of coverage before closing
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Specific coverage limits
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Acceptable risk profiles
If insurance becomes complicated, it can delay or jeopardize a transaction.
Age and Condition of Major Systems
Insurance companies closely evaluate:
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Roof age and material
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HVAC systems
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Electrical and plumbing updates
Older or poorly documented systems can lead to:
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Higher premiums
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Coverage exclusions
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Required repairs before binding a policy
What feels “fine” to a buyer may raise flags for an insurer.
Roof Details Matter More Than Buyers Expect
Roofs are one of the biggest insurance considerations.
Insurers often assess:
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Remaining roof lifespan
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Material type
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Past repairs or patches
Even a roof with no visible leaks can impact insurability if it’s near the end of its expected life.
Electrical and Plumbing Risks
Certain systems draw extra scrutiny.
Insurance companies pay attention to:
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Outdated electrical panels
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Older plumbing materials
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Unpermitted modifications
These factors can affect both coverage approval and cost.
Claims History and Property Records
Insurers review more than just the current condition.
They often consider:
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Prior insurance claims
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Loss history tied to the address
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Permit and repair records
Past issues can influence premiums — even if the home looks well-maintained today.
Why Location Still Matters to Insurers
Insurance companies also factor in:
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Local weather patterns
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Proximity to natural risk factors
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Regional claim trends
Two similar homes in different areas may receive very different insurance quotes.
What This Means for Buyers
Buyers should:
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Request insurance quotes early
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Ask about roof age and system updates
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Factor premiums into overall affordability
Understanding insurance expectations avoids last-minute surprises.
What This Means for Sellers
Sellers preparing to list should consider:
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Roof certifications or documentation
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Records of updates and repairs
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Addressing known red flags in advance
Proactive preparation supports smoother transactions.
FAQs: Insurance and Home Buying
Q: Can insurance issues delay closing?
A: Yes — coverage must usually be in place before closing.
Q: Does a newer roof always lower premiums?
A: Often, but material and installation quality also matter.
Q: Are older homes harder to insure?
A: Not always — documentation and updates make a big difference.
Q: Should buyers shop insurance before making an offer?
A: It’s smart to explore estimates early in the process.
Q: Can sellers fix insurance issues before listing?
A: Yes — addressing known concerns can reduce friction later.
The Bottom Line
Insurance companies assess risk — not lifestyle. Understanding what they look for helps buyers avoid surprises and helps sellers prepare homes that move through escrow more smoothly.
When insurance is part of the early conversation, transactions stay on track.
Buying or Selling? Let’s Look at the Full Picture
If you’re buying or selling in Gilbert, Chandler, Mesa, Queen Creek, Scottsdale, or the greater Phoenix area, I’ll help you anticipate insurance considerations early — so nothing unexpected slows your closing.
📞 480-980-4400
📧 [email protected]
🌐 www.denisehurd.com
Because smooth closings depend on details most people don’t think about.