INDUSTRY INSIGHT
INSURANCE Does a Good Home Inspection
Equal Insurability ?
Four common home insurance issues to be aware of during your inspection
Having a home inspection is crucial to making sure that your dream house won ’ t end up becoming a money pit . Although home inspectors are experts at determining if a structure is properly sound they may not be aware of certain factors that could affect a home ’ s eligibility for insurance coverage even when it passed inspection . Although every company ’ s underwriting guidelines are different , these are some common issues that could prevent you from obtaining coverage and delaying your closing .
Roof Condition This is the most obvious of the external issues , but one that insurance companies are extremely concerned with as it provides the most potential for future water damage . An inspector can give you a good idea of the age of your roof , and let you know if it has run beyond its useful service life . For most insurance companies any asphalt shingle roof older than 25 years will not qualify and will require a replacement before coverage can be written . Other issues to be aware of are missing shingles , poorly patched roof sections , and damaged and missing gutters as this could lead to a coverage decline as well .
Missing Railings or Stairs This is a commonly overlooked exterior issue . If you have a set of stairs outside your house with three or more steps there must be a railing . Many older houses may have cement steps with no railing or a homeowner may have made a deck or landscaping area without a permit leading to an external stairway with no handrail . Thankfully this is an easier fix than installing a new roof but it is just as important an issue to resolve to ensure your closing goes smoothly . Missing handrails are one thing but some homes may be missing the external stairs completely . This usually comes about from an unfinished deck project or something similar . This can lead to a door with a one to two story drop on the first step . Understandably , this is a gigantic liability exposure for you as a homeowner and an insurance company will not insure a home with this kind of issue . It may seem hard to believe , but I have seen this myself enough times that it bears mentioning . If you see this on a house be aware that it is a sure fire decline from almost all carriers and will need to be resolved .
Older Electrical Systems & Knob and Tube Wiring Electrical systems are one of the most important internal issues that need to be considered as faulty and outdated wiring can lead to catastrophic and life threatening fires at any time . All insurance companies want to see at the very minimum 100 amps service and prefer all wiring to be on circuit breakers , as opposed to fuses . Some companies will cover a home with fuses as long as the system meets their standards . Some will not , so if you have fuses in your home it is best to check with your insurer to see what their stance is . Knob and tube wiring is an older type of wiring ( pre 1940 ) that is dangerous due to its fabric insulation that breaks off over time exposing the bare wire underneath . Many times knob and tube wiring is left installed in a home but is no longer connected and active . Your home inspector should be able to tell if that is the case . If any electrical circuits are actively running on knob and tube home insurers will not be able to provide coverage . Once the home is rewired and no knob and tube is active then insurance can be considered at that point .
SPONSORED CONTENT
Older Furnaces With the cost of installing new furnace in a home it ’ s not uncommon for a homeowner to approach a “ if it ’ s not broke don ’ t fix it ” attitude to an older furnace that is still functioning well . However when it comes to buying a home with an older furnace , even though it may work well it may affect your eligibility for coverage . Gas furnaces are only rated to run up to 25 years , and insurance companies many times require that the furnace in the home be updated within at least 30 years . If older , they may require that it be replaced in order to be eligible for coverage .
So when you are looking at a house remember to involve your insurance agent in the process . Even invite him to come to the home inspection . That way if there are any issues that may arise they can be dealt with early . That ’ s what we are here for at The Bill Flinn Agency . If you are looking to purchase a home and need insurance advice , call us first .
There are no guarantees in life .
Lifelong peace of mind can be yours with ERIEflex4 ṢM
Let ’ s talk life insurance .
Guaranteed death benefit can extend to age 121 . Guaranteed death benefit will expire if no premiums are paid following initial premium , subsequent premiums are insufficient or account value is reduced by withdrawal or loan . Contact your local ERIE Agent or see the policy for details .
Bill Flinn Agency Inc
2754 S Park Rd Bethel Park , PA 15102-3858 www . billflinnagency . com
412-833-5351
ERIE ® life insurance products and services are provided by Erie Family Life Insurance Company . Information regarding additional terms , conditions , exclusions , licensure and territory information is available at erieinsurance . com / life . Eligibility for insurance coverage will be determined at the time of application , based upon applicable underwriting guidelines and rules in effect at that time . S1603 5 / 14 © 2014 Erie Indemnity Company
This INdustry INsight was provided by Jason Flinn at The Bill Flinn Agency .
For over 40 years The Bill Flinn Agency has been serving the Bethel Park and South Hills communities . Since opening our doors in 1972 our mission has been to treat our customers by the golden rule . Learn more about us at www . billflinnagency . com , or stop by our office on South Park Road in the heart of Bethel .
Bethel Park | Summer 2017 | icmags . com 13