New insurance requirments

Insurance for Buyers and Sellers

I have noticed in my travels, talking to Buyers and Sellers that the insurance requirements for property have changed in the last few years and it is not common knowledge.

In an effort to help with ease the transition I thought I would pass this on.

(Not all communities will be as affected by these changes to the degree we see it as our area as we have a large percentage of properties built before the 1970's.)

For Sellers... You may prepare your home for sale by understanding that in order for a Buyer to secure finance they must be able to insure the property they are buying so if your property has these any of these issues the Buyer may have difficulty insuring and therefore being approved for finance.

For Buyers.... Just being aware of the possible "speed bumps" in older property purchases will help prepare for issues that may occur.

Requirements...

Wiring- Most insurance providers are requiring a minimum of 100 amp service with breaker style panel and a "main" shut off. They are also requiring there be no active "Knob and Tube" wiring present.

Plumbing- Most insurers are not covering "galvanized" plumbing as it hasn't been the product of choice for builders for many years therefor must be very old and it deteriorates over the time making it a very high possibility of being an insurance claim.  

Oil tanks- Insurance companies have no tolerance for old oil tanks as they have a possibility of being an environmental hazard and they do not want liability. They must be removed and that site proven clean in order to get insurance. So if there is an oil tank present (sometimes difficult to determine) it must be removed properly. Please have insurer specify their requirements before removal to be sure it is done to their standards. Keep all documentation as it may be required to subsequent sales.

Asbestos- This is an ever changing issue. If asbestos is found please advise insurance provider as to requirements.

There are many other changes taking place but these have been the most prevalent I've seen.

Please feel free to call or email me anytime! I'd be happy to discuss any questions or comments you may have.

Deanne Slessor

Deanne Slessor

Sales Representative
CENTURY 21 Kootenay Homes Inc.
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