Sunday, 31 May 2015

Home insurance concerns noted in a published story

Wiring, plumbing, wet basements are all insurance woes a house may have 

By Mark Schadenberg
The National Post newspaper recently published a story – a checklist essentially – noting 14 items to be aware of when looking at a home and how these items could effect your insurance rates.
I have written on this subject before and it's interesting to note that banks (Concerns revolve around coverage on high-ratio mortgages by CMHC) and insurance companies continue to make their guidelines more strict.
The list in the link below is quite extensive and most certainly includes electricity – both knob-and-tube wiring and aluminium. When showing older homes, I still see a lot of 60-amp service fuse boxes too.


It seems too obvious to mention, but a wood-burning fireplace makes the list. As a Realtor, my concerns surround the condition of the flue and whether of not the current owner has updated WETT certification. I showed a 50-year-old house a few weeks ago, which had a brick frame around the fireplace and its mantel, but there was absolutely no hearth, so the floor, which was hardwood, was less than 3 feet away from embers.
Oil heating is a concern due mostly to the age of your oil tank and whether or not it's outside or in the basement. Your oil supplier should know the age of the tank. You could say it's like your bbq propane tank on your back deck, when it's too old to be filled up, the gas station will not fill it.
Insurance folks will always worry about a wet basement, so you most certainly should too. Old galvanized plumbing is always a red flag as it rusts from the inside (where the water is) to the outside. Other concerns include cracks in the foundation, type of foundation (stone, block, poured concrete or wood), presence of a sump pump and a battery backup for it, and any signs of mold. I have never believed that the white salty look (efflorescence) on basement walls was anything more than a sign of mustiness caused by very low amounts of moisture.
Leaky basements can certainly be fixed from either the inside or the outside.
Keep in mind, some very low-lying areas will see water come up from the basement drains if the storm sewers are over-loaded.

Not on the National Post list, but likely the newest foe for possible insurance claims is new technology – Pex (Cross-linked polyethylene) plumbing. Although the Pex system was invented in the 1960's for mass-market use, it didn't really become popular for the movement of potable (drinking) water until about a dozen years ago. Before you call a plumber to replace all your plastic tubes in your basement joists, it can be added that the Kitec brand seems to be the trouble maker, and it's no longer manufactured, but could be in a house constructed up to about 2005.
The newer current Pex system is most definitely still in common use today.

It's interesting to note that many home offers are now conditional upon an inspection and also conditional upon obtaining insurance on the subject property. The insurance companies know which homes have had claims previously.
As is said in all industries, an educated consumer is the best consumer, but you can also be overly cautious and that's not going to assist in your home-buying process.
Have any questions, call me today! Let's begin the process of finding your home.

LINKS:
http://www.basementquestions.com/efflorescenc.php


Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)
Royal LePage Triland Realty
757 Dundas St, Woodstock
www.wesellwoodstock.com
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland

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1 comment:

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    Joshua Duncan @ Focus Insurance Atlanta

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