"Subject to Insurance Coverage"

Inclusion of a condition in your offer to purchase stipulating that you can confirm insurance coverage on your new home is a must to protect your interest.  This is especially true with older homes that may have retrofits in wiring ( from knob and tube to today's standards).  Recently we had a transaction in our office where  the  the retrofit had been completed in wiring but there was still approx 10% of wiring in knob and tube.  Based on a communication from insurer that coverage would be in place, the condition was waived from the offer.  Two days before closing, the insurer said that an E.S.A. certificate would be necessary.  Logistically, this would be an impossible request given the short time frame...and now the transaction would be in danger of not closing.  After a pointed dialogue with the insurer to fulfill their covenant of coverage, the insurer agreed to place coverage BUT the E.S.A. still must be completed within 30 days of completion of the transaction.

Insurer's are now insisting on an E.S.A. certificate where the situation dictates. Ensure that your offer to purchase includes this condition.

Robert Mair

Robert Mair

Managing Broker
CENTURY 21 Heritage House Ltd., Brokerage*
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