In recent years, homeowners have faced increasing scrutiny from insurance companies when applying for new policies or renewing existing ones. With rising claims costs and evolving risk assessments, insurers are tightening their requirements and asking more detailed questions before issuing a binder. If you’re planning to buy a home or renew your policy, here’s what you need to know about the key factors insurance companies are considering.
Key Home Features Insurance Companies Are Evaluating
Roof Age and ConditionOne of the first questions an insurer will ask is about the roof’s age and condition. A roof that is over 15–20 years old may raise red flags, as older roofs are more prone to leaks and storm damage. Some insurers may require proof of recent repairs or even a full replacement before offering coverage. Sellers with older roofs may need to be prepared to update their roofing systems to avoid delays in the transaction process.
Electrical SystemInsurers are looking closely at the type of electrical wiring in a home. Older systems, such as knob-and-tube or aluminum wiring, can be fire hazards and may result in higher premiums or policy denials. Breaker panels from certain manufacturers, like Federal Pacific, can also be problematic. If you own an older home, consider having an electrician assess your system before seeking coverage.
Plumbing Materials and AgeThe type of plumbing in a home is another major factor. Polybutylene piping, common in homes built between the 1970s and 1990s, is notorious for leaks and failures. Galvanized pipes can corrode over time, leading to water damage. Many insurers prefer copper or PEX plumbing and may require updates for older systems. Sellers should be aware that outdated plumbing can impact buyer interest and insurance approval.
HVAC and Heating SystemsInsurance companies want to know about the age and condition of your heating and cooling systems. Older furnaces or systems that use oil or wood-burning stoves can pose fire risks. Regular maintenance and upgrades may help keep your premiums lower.
Past Claims HistoryHomes with a history of multiple insurance claims can be harder to insure. Insurers use databases like CLUE (Comprehensive Loss Underwriting Exchange) to review past claims, and frequent water damage or fire-related claims can result in higher rates or policy restrictions.
Foundation and Structural IntegrityStructural issues, such as foundation cracks or past settling problems, can be red flags. Insurers may require a home inspection to verify the stability of the structure before binding a policy.
Proximity to High-Risk AreasHomes located in wildfire-prone zones, flood plains, or areas with high hurricane risk may face additional insurance requirements. In some cases, homeowners may need to purchase separate policies for flood or earthquake coverage.
Get Homeowners Insurance Early in the Buying Process
Once you are under contract to purchase a home, securing a homeowners insurance policy should be a top priority. Waiting too long can lead to last-minute surprises, such as higher premiums or coverage denials due to property conditions. Many lenders require proof of insurance before closing, so obtaining a policy early ensures a smoother transaction. Buyers should work with their insurance agent as soon as possible to identify any potential issues and avoid delays.
What Homeowners Can Do
If you’re preparing to purchase a home or renew your insurance policy, consider taking proactive steps:
Upgrade outdated electrical, plumbing, or roofing systems.
Keep records of any repairs or renovations.
Shop around for insurers that specialize in older homes if your home has aging systems.
Final Thoughts
With insurance companies tightening their requirements, it’s more important than ever for homeowners to be prepared. Understanding what insurers are looking for can help you make informed decisions, avoid surprises, and secure the best possible coverage for your home. If you're unsure about your home’s insurability, working with a knowledgeable insurance agent can provide valuable insights.
Are you thinking about buying or selling a home on the Oregon Coast? Contact us today to ensure you’re fully prepared for the latest insurance requirements in the market.

Comments