Buying a home is one of the most exciting (and sometimes stressful) journeys you’ll ever take. Whether it’s your first home or your forever home, the process comes with a lot of decisions—price, location, size, layout, and even little things like whether you can picture yourself drinking coffee on the front porch.
But there’s one important factor that sometimes gets overlooked until later in the process: homeowners insurance.
At Sharp Family Insurance, we’ve helped plenty of folks in Hot Springs, Arkansas and the surrounding area find the right coverage for their homes. We know that getting a home insurance policy isn’t just about checking a box for your mortgage lender—it’s about making sure you’re fully protected against life’s unexpected moments.
So, before you say “yes” to the house, here are some key things to consider from an insurance standpoint to help you make the best decision possible.
Location, Location… Insurance?
We all know that location is one of the biggest factors in choosing a home. You want to be close to work, school, or family. Maybe you want a spot near Lake Hamilton or Lake Ouachita to enjoy those Arkansas summers.
But have you considered how your home’s location could impact your insurance rates and coverage needs?
Flood Zones and Water Damage Risks
In Hot Springs, we have our fair share of water—lakes, rivers, and the natural hot springs themselves. While living near water has its perks, it can also come with added insurance costs.
Flood damage isn’t covered under standard homeowners insurance. If your dream home is in a flood-prone area, you may need a separate flood insurance policy. At Sharp Family Insurance—we’re happy to help determine if a separate policy is recommended.
Fire Risk and Proximity to Emergency Services
Another factor that affects insurance is how far your home is from a fire department or even a fire hydrant.
Homes in rural areas or heavily wooded lots may have higher insurance rates because fire protection is farther away. While Hot Springs Fire Department serves the city well, homes outside city limits may rely on volunteer fire departments, which can impact response times.
The Age and Condition of the Home
Older homes have charm—many homes in Hot Springs have beautiful historic features, unique architecture, and classic Southern character. But they also tend to have higher insurance premiums due to outdated materials, wiring, and plumbing.
Older Roofs = Higher Insurance Costs
One of the first questions insurers ask is: How old is the roof?
A newer roof (less than 10 years old) is a big plus because it provides better protection against storms, leaks, and general wear and tear. As an independent insurance agency, Sharp Family Insurance can shop multiple carriers to find potential discounts for homes with a well-maintained or recently updated roof.
If the home has an older roof, you may need to:
- Ask the seller for documentation on the last roof replacement
- Have a home inspector check for signs of wear
- Get a roof certification if required by the insurance company
Plumbing and Electrical Systems
Outdated plumbing and electrical systems can also be a red flag for insurance companies.
Galvanized pipes (common in older homes) tend to corrode over time, increasing the risk of leaks or water damage.
Old electrical panels or knob-and-tube wiring can be fire hazards, and many insurers won’t cover homes with these unless they’ve been updated.
If you’re considering an older home, be sure to check if these systems have been modernized. Otherwise, you might face higher insurance costs—or have trouble getting coverage at all.
Understanding Previous Insurance Claims (CLUE Report)
Did you know that every home has a history? And not just the kind you can see in the paint colors or floor plan—a history of insurance claims.
You can request a Comprehensive Loss Underwriting Exchange (CLUE) report, which shows any insurance claims filed on the property in the past five to seven years.
Why does this matter?
- If a home has a history of water damage claims, it could mean recurring plumbing issues.
- Multiple claims in a short period might indicate that the home has hidden problems.
- You might be faced with higher premiums for homes with a history of frequent claims.
If the home you’re looking at has a long list of past claims, it’s worth digging deeper to understand why.
Home Security and Insurance Discounts
Home security isn’t just about protection—it can also lower your insurance rates.
Many carriers offer discounts for homes with security features such as:
- Burglar alarms (monitored security systems save the most)
- Deadbolt locks and smart locks
- Smoke detectors and fire alarms
- Storm shutters or impact-resistant windows
- Fire sprinklers
As an independent insurance agency, Sharp Family Insurance partners with multiple carriers, giving us the ability to explore potential discounts for homes with these features. If your home doesn’t already have them, adding these upgrades after you move in could help lower your insurance costs.
Trees, Landscaping, and Exterior Risks
That big oak tree in the front yard might add charm, but if it’s too close to the house, it could be a hazard.
Consider these potential risks:
- Falling trees or limbs during storms
- Roots damaging foundations or plumbing
- Overgrown vegetation increasing fire risks
If the property has large trees, have an arborist check their health. Removing a dying or unstable tree now could save you from costly damage later.
Home Construction and Materials
The materials used to build the home affect how well it holds up to storms, fires, and other disasters—and that affects your insurance costs.
Here’s how different materials impact insurance:
Brick or masonry homes – More fire-resistant, often leading to lower insurance premiums.
Wood-framed homes – More susceptible to fire and may cost more to insure.
Mobile or manufactured homes – Typically require specialized insurance policies.
If you’re buying a home in tornado-prone areas (which Arkansas sees from time to time), consider whether the home has:
- Reinforced roofing and walls
- Storm shutters or impact-resistant windows
- A safe room or tornado shelter
Get an Insurance Quote Before You Buy
One of the biggest mistakes homebuyers make is waiting until closing to think about insurance.
Instead, it’s smart to get a quote before making an offer. That way, you’ll know how much you’ll be paying and can budget accordingly.
At Sharp Family Insurance, we make it easy to get a fast, no-obligation quote. We can help you understand:
- What’s covered under standard homeowners insurance
- What additional coverage you might need (like flood insurance)
- How to lower your premiums with available discounts
Buying a home is a big decision, and homeowners insurance plays a crucial role in protecting your investment. By considering location, home condition, past claims, security, and insurance costs, you can make a more informed decision before purchasing a home.
If you’re in the market for a new home in Hot Springs, Arkansas or our surrounding areas, let Sharp Family Insurance help you find the right coverage.
We’re here to help you protect what matters most—your home, your family, and your future.
Let’s talk!
Sharp Family Insurance
www.sharpfamilyins.com/contact/
(501) 547-9474
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