When you apply for insurance, companies will look at both the home to be insured and the person applying.
- 1. Insurance companies consider a home's age and condition, including the electrical system, plumbing, heating, oil tanks and structural components. They will also want to know if the home is owner occupied, rented or left vacant.
- 2. Insurance companies also look at the individual applying for insurance. Individuals with a number of previous claims, policies that have been cancelled, declined or lapsed, a poor credit rating or convictions for insurance fraud may see their applications declined or a surcharge added to their premium.
What to Do When Buying or Selling a Home?
Buying--Buyers should consider home insurance in their decision making process. Consider getting "pre-approved" for insurance, just as you would a mortgage.
--Ask your broker to get a "claims report" on the home you plan to buy.
--Don't' wait until the last minute. Buyers should arrange home insurance as soon as their offer is accepted.
--Buyers may consider working with their REALTOR® to make offers conditional on obtaining satisfactory home insurance.
Selling--Sellers can speed the sale of their home by obtaining a home inspection, which may highlight potential insurance issues.
--Sellers may wish to fix any problems to promote a faster sale at a better price.
(Source: Ontario Real Estate Association)