Moose Jaw asked:
A realtor showed me a property that was obviously run down, but for whatever reason, I really fell in love with it. He didn’t mention anything about it being not insurable, and I am now wondering if he is obligated under any particular directives to share that information. Is it my responsibility to pay for an inspection and send that to an insurance company before knowing whether or not it is insurable? Thanks for any info.
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Insurance companies are getting really picky these days- they use a national data base C.L.U.E. report to verify if there have been previous claims on the house to determine what pre-existing conditions might be issues. Some will not issue policies if the roof is wood shake, or the plumbing is original galvanized because of the related issues from those conditions. You should talk to some local insurance brokers and find out what would disqualify a home from coverage in your area.
Yes, it is your responsibility. The agent has no way of knowing whether or not a particular insurer will write a policy on a particular property. The job of the real estate agent is to sell the property. Checking into insurability is NOT a part of that job.
There is a certain implied knowledge upon viewing a home. If it appears in bad run down shape, it is obvious it may not even be habitable, let alone insurable. Real estate agents are licensed to sell real estate, not hazard insurance and would not even begin to know the varying requirements that numerous insurance companies have.
Our MLS implemented an insurance clause in our financing addendums that allow a buyer to make their financing and offer subject to obtaining an insurance binder for their determined maximum amount. If a policy can not be obtained at an amount at or less that stipulated, the agreement is voided and the buyer’s earnest money is refunded.
The insurance company may or may not require a copy of your home inspection. It is your responsibility to have and pay for a structural or home inspection. Most states require a disclosure from a real estate professional that you have been advised to obtain one, in the event you decline to have one.
Insurable? Do you mean is the house safe to occupy? An insurance agent has NOTHING to do with that. It’s why you hire a building inspector to grade it.
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