Homeowner's Insurance

Can You Even Get It For Your New Home?

If you are about to buy your dream home and are going to finance it, lenders will likely require that you obtain homeowner's insurance to protect their security (your home) before they lend you any money for a mortgage. But, if you can't get homeowners' insurance, you won't be able to close your deal & a messy situation to say the least. But even if you're not going to get a mortgage for your home and are paying cash, we certainly think it just makes sense to have homeowner's insurance regardless.

However, what you may not be aware of is that you just can't automatically get homeowner's insurance in every instance on that home you are about to buy and, even if you can get coverage, it may come at an additional / higher premium or require further action on your part such as making repairs, modifications and / or require further inspections by specialists. Some are under the impression that if the existing homeowners have coverage that they will be able to get insurance unfortunately, that's not necessarily so.

If you're buying a home make sure that you talk to your professional Realtor® and / or lawyer about adding a clause to your Offer to Purchase that makes your purchase conditional on you obtaining insurance coverage and premiums that are satisfactory to you.

So, it's important that you know more about your house that you might think you need to know and what condition it's in before you buy it so you can make sure you get the appropriate insurance that is satisfactory to you.

How does your new dream home stack up? - Here is a list of just some of the issues that can ring alarm bells with some insurers of homes:

Electrical

• Older distribution wiring, such as knob & tube wiring

• 60 amp / older electrical service

• Aluminium distribution wiring

• Glass fused electrical panels
  

Environmental

• Fuel storage tanks, including buried ones

• Asbestos covered boilers / hot water heating pipes

• Mould / mildew / fungus
  

Heating

• Distance to combustible materials

• Older furnaces

• Area / portable heaters

• Combination furnaces e.g. wood-oil, wood-electric, etc.

• Alternate heating sources in outbuildings

Fireplaces / Wood Stoves

• Wood stoves / wood stove inserts

• Chimneys

• Distance to combustible materials

Plumbing

• Galvanized steel plumbing pipes

• Cast iron waste pipes

Roofs

• Older roofs / shingles

Safety

• No smoke detectors

• No carbon monoxide detectors

• No alarm / security system, especially those not monitored
  

Stairways / Walkways

• Missing / loose handrails on stairs

• Missing / loose balusters / spindles

• Heaving / cracked walkways
  

Insects & Vermin

• Presence of infestation / damage

Other

• Unprofessional work carried out to the home

• Grow houses (marijuana operation)

• Income / rental properties

• Proximity / location of your property to other high risk properties

• Use of the property not the same as it was constructed for

• Your credit rating
  

IMPORTANT: Please consult you homeowner's insurance broker before purchasing your next home to ensure coverage and premium costs are satisfactory to you. Further, if you already own your home call your insurance company on a regular basis to review your existing policy with them to ensure it meets with your needs.

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