What about Insurance!!!
Here are some things that you need to know about insurance. The insurance industry has changed substantially in the past few years. Did you know that in many cases, it could be very difficult to get insurance on your new home. Did you know that if you are selling a home, the deal might not close because the new buyer cannot insure the home? Premiums could be very high or you may find that you cannot find an insurer to cover you. Here are some red flags to consider whether buying or selling.
- Does the home have Knob and Tube wiring?
- Is there a wood stove that may not meet today’s codes
- What about heating? Solid fuel add-ons like wood/oil units, old oil tanks in excess of 20 years of age, corn or wood pellet stoves, exterior wood burning furnace,
radiant heat, space heaters and prefabricated chimneys, are some insurance concerns. Underground oil tanks or multiple oil tanks will likely mean you cannot get insurance. - Is the home over 25 years old? Is the roof covering over 20?
- Does it have a minimum of 100-amp service?
- Are there galvanized pipes?
- Do you plan to have roomers or boarders? No cooking is permitted by them!!!!
- What about the home style? Log, Modular, or mobile homes can be difficult to insure.
- Are you within 5 miles of a responding fire hall that has a shuttle tank service?
- Have you have two previous claims or ever had insurance declined by another insurer?
- Have you had any previous insurance policy? If not it is difficult to find a company to insure you.
- Do you have unusual or vicious pets or guard dogs.
- Do you have more than two mortgages on the property?
- Are you operating a business from you home? Do clients or customers come to your home? Do you have staff?
- Do you own a hobby farm? Is it over 25 acres? Do you board animals, breed animals, race or show animals?
These are just a few things to consider when purchasing and to remind you that you may have a higher premium or find it difficult to find and insurer if any of these conditions are present. People with a claim in the past 6 years or cancellation of a policy in the past six years have also had difficulty obtaining insurance.
If selling, you may wish to remedy some of these concerns prior to listing if it is possible. Most offers today come complete with a home inspection clause in them. You don’t want to go to the trouble of putting your home on the market, finding a buyer, making plans for your next move and them finding out that the new buyers can not close on the deal because the property can’t be insured and the mortgage company will not advance funds.
