Below is a list of properties that may pose a problem when insuring:
Houses
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Vacant dwellings (Where the purchaser has no intent to move in or rent)
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Boarding and / or rooming houses.
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Houses where the electrical panel is less that 100 AMP service OR knob & tube wiring OR Aluminum wiring (must have an inspection report from a qualified home inspector or licensed electrician)
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Dwellings known to have a grow-op (Full interior inspection by a qualified home inspection service plus a inspection by a certified electrician and phot's to be submitted)
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Heritage Sites
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Underground oil tanks (virtually impossible)
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Above ground oil tanks OK if less that 25 years old and in good condition (need photo)
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Dwellings with more that 2 solid fuel heating units or space heaters.
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Dwellings with more that 2 mortgages
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Commercial or business operations in the house (depends on type of business; Tupperware OK but Welding or Woodworking taboo)
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Stand alone rentals are more difficult but can be accommodated
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Dwelling without proper railings on deck and/or stairs
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Row Houses. Some companies will and some won't. Coverage is restricted, requires a party wall agreement and may require a fire wall between units.
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Dwellings over 25 years in age are difficult but are much easier if the following are done: 1) Roof Redone 2) Heating updated (new furance) 3) Some updating or at least 100 AMP breaker panel 4) Copper or plastic pipes (absolutely no iron or galvanized water pipes except drains) It really helps if the hotwater tank has been replaced!
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It would be a great help for insurance brokers if the Seller could indicate if and when any of the above was done. Dates of major renovations and updates sure helps!
Dwelling where larger premiums apply but are usually not a problem:
Wood stoves or as commonly called "solid fuel heating units"
- one stove add 5% to 15%
- two stoves add 50%
All this is assuming CSA, ULC or Warnock Hersey approved units that have been professionally installed and inspected. Home made stoves!....Forget It!!
Also be aware of outdoor wood furnaces/stoves whether boiler type or forced air. Some companies will NOT insure them, other companies treat them like any other "solid fuel heating unit" and surcharge on the premium. Some companies will not surcharge if the unit is an approved one (CSA, ULC or Warnock Hersey) and if the unit is at least 50FT away for any building!
Log Homes:
These are getting tougher by the week!
-have to be insured as custom built (most companies are accepting a replacement cost figure of 25% to 35% more than a wood stick house)
-guaranteed replacement cost not available
-premium surcharge of anywhere from 10% to 25%
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Dwellings that are a part of "row housing" Duplex's OK if a party wall agreement is in place
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Rent to purchase dwellings
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Rentals where the landlord lives in another town or city
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Wood basements. Some companies will not insure, some will and some will charge extra The market is more restrictive. (If you have a fire in the basement you have to replace the whole house)
*Mobile Homes:
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The older the mobile home the higher the premium and the more restrictive or limited the coverage
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Replacement cost on the mobile not available on units built prior to 1976
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Mobiles where the only source of heat is wood
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"One" auxiliary wood heating unit OK if an approved unit professionally installed
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"Unskirted" units or units not on concrete pillars
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Mobile units on farm property
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Rentals are difficult
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Railings are mandatory on decks and steps
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Must be in good condition
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Vacant Units
*Mobile homes are called mobile homes in insurance circles whether "de-registered" or not unless
the mobile has a full perimeter basement foundation and the furnace has been located in the basement or has electric baseboard heat. This still may only apply on single-wides.
Commercial Buildings:
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Vacant
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High hazard occupancies like welding, woodworking, storage of flammables ect
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Old buildings (25 years plus) with no updating to the roof, heating, plumbing or electrical
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Buildings outside fire protection areas (no hydrants or no fire department)
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Underground oil tanks
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Auto body shops with "unapproved spray booths"
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This list is by no means complete so best to check with your insurance broker and at least get an idea if insuring the building is going to be a problem!
Another thing to remember is once an occupied building becomes vacant the insurance will become "Null & Void" after 30 days if no notice is given to the insurance broker and even then it is expensive to obtain vacancy coverage if only fire, wind, hail and lightning! No other coverage's can be purchased on vacant buildings. This applies to all buildings whether houses, mobile homes or commercial buildings.
The above list is by no means exhaustive. Always check!
And lastly, the client's own personal characteristices may influence their ability to purchase insurance. Being of legal age, of moral character or a poor claims history are just a few examples of important factors which may affect one's ability to purchase insurance coverage.
April 27, 2007 Porter and McMillan Insurance
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