Did you know? News you NEED to know about Hazard Insurance....

Today I would like to review some on-going Hazard Insurance issues affecting your Closings.

Aluminum Wiring:
Unfortunately, this is still one area that has been given NO leniency by Company Underwriters. Of over 30 Carriers that contract with most insurance companies, only one will accept aluminum wiring, as long as it is not mixed with another wiring type (ie, copper, Romex). However, their Dwelling coverage is $350,000 and their rates aren't the cheapest by any means. Homes needing Coverage in excess of $350,000 May qualify with several other Standard Carriers if they have been retrofitted with the following:
Pigtailing using the Copalum Crimp method, or the AlumiCon connector method.
If you need specifics, please feel free to email Rob Owen(Owner, Rob Owen Insurance Inc.) rob@roboweninsurance.com

Polybutylene  Plumbing:
Most companies will not allow, but some headway has been made. Certain standard carriers are glad to accept the risk and allow a binder for closing IF the home is replumbed within 30 days after closing. Otherwise, some insurance companies have standard markets that will allow a binder for closing. Some of these Companies(Carrier) will either exclude water losses, or allow a $10K buy-back coverage for additional premium. Premiums are very competitive.

Stucco/Stair-Step Cracking:
The risk is settlement or sinkhole claims and water intrusion. Underwriting has eased up somewhat since a year ago. Certain carriers will allow a binder for closing if the cracks are sealed and painted. Note from Rob Owen: "Please note, if we don't discover this in our initial field underwriting, it WILL be discovered within 30 days after closing when the Insurance company inspectors conduct their on-site exterior inspection. This will result in a 30 day Notice of Cancellation sent to the new buyer."

Older Roofs in Disrepair:
Not a problem if buyer plans to replace within 30 days after closing. Otherwhise, the buyer may have to settle for a policy that restricts Coverage to ACV, and/or excludes water losses.

Roofs Replaced after 2002:
VERY IMPORTANT to consider paying the $75 for a Wind Mitigation Report. The savings to your Homeowner Premium can be substantial. Need a Wind Mitigation Inspector Referral? Email Rob@roboweninsurance.com

I hope this information was useful, as I know I personally like to be up-to-date on any information that will help my buyer understand every aspect of the transaction.

If you need an insurance quote, please contact:
Rob Owen, Agent
Rob Owen Insurance Inc
Property Insurance for Closings

Rob was generous of providing this information to me and I felt it was important to pass it on...