Buying a Home or Auto – What Will Your Insurer Require?

Buying A Home
Buying A Home
Feb 07 2018 2 min read

When it comes time for you to purchase your first auto or replace the one you have, your auto insurance company will need some specific details to provide the right insurance coverage. Be prepared with all information ready for your insurance agent when purchasing a new residential property as well. The more information you have, the better!

Your buying decision to purchase a used automobile, brand new vehicle or even an antique vehicle will determine the information and documentation your auto insurance company will require. If you are purchasing a used vehicle, the vehicle identification number (VIN) of the vehicle, odometer reading, any prior damage, and a copy of the ownership is will be needed by your insurer. When you purchase a new vehicle as you drive it off the lot, it depreciates very quickly. Providing the bill of sale gives you the option of purchasing a waiver of depreciation. This means in the event of an accident within the first 24 months, you receive the replacement cost of your auto rather than a depreciated amount. Trust us, this is auto insurance endorsement is money well spent, and is very feasible considering the value of your purchase.

Antique or classic vehicles, motorcycles, and recreational vehicles are unique because their values can vary. You will be required to provide your auto insurance company a recent appraisal of the automobile. The physical damage rates for those vehicles will be based on the value stated, and you will be asked to sign a form stating the agreed upon value of the vehicle to be paid if you experience a loss.

Purchasing a residential property is a major decision and to be sure you have the proper protection, your property insurance company will need to gather crucial information to assess the risk they are about to insure. Besides the type of construction of the home, you will need to provide information about the heating systems, roof, plumbing and wiring updates, and the age of the home. Some of these details may be available from the real estate agent selling the home or the current homeowner themselves. Other information required for the property includes distance to a fire hydrant, or if you are purchasing a rural property, is there fire hall within 5km? Any swimming pool or hot tub, and if there is acreage that you either farm or may be rented out to a farmer? These details will assist in creating the type of home insurance policy that protects you and your family in your new home.

If you are unsure of some of the details, you may be required to do a bit more research or collect that information from other sources. Although it seems intimidating, contacting your Erie Mutual professional advisor will make it simple for you to answer the questions required to provide the best possible coverage.

Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.

Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.

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