Insurability Issues to Look Out For
Upon concluding our inspections, we consistently find that the primary areas of concern often revolve around insurability. Here's a compilation of factors we commonly observe that can impact a home's eligibility for insurance coverage.
Exposed Wiring
Issue: Exposed wiring poses a serious safety risk, as it increases the likelihood of electrical shocks, fires, and damage.
Impact: Insurance companies consider exposed wiring a high-risk condition that needs immediate attention. They may require professional repairs to ensure safety standards are met before providing coverage.
Roof Condition
Issue: A damaged or aged roof can pose a significant risk for insurers, as it may lead to water damage and other issues.
Impact: Insurance companies may be hesitant to provide coverage or may require repairs or replacement before issuing a policy.
Electrical System Concerns
Issue: Outdated or faulty wiring, double-tap breakers (pictured), outdated electrical panels, or a lack of safety features can be red flags for insurers.
Impact: Insurance providers may require updates to ensure the safety and reliability of the electrical system.
Plumbing Problems
Issue: Leaks, corrosion (shown below), polybutylene plumbing (shown below - generally found in homes ranging from 1978-1998) or outdated plumbing systems can lead to water damage and mold, making a home a higher risk for insurers.
Impact: Insurers may request repairs or replacements to prevent potential water-related claims.
HVAC System Issues
Issue: Inefficient or poorly maintained heating, ventilation, and air conditioning (HVAC) systems can be a concern for insurers.
Impact: Insurance companies may recommend servicing or upgrading the HVAC system for better energy efficiency and reduced risks.
Take note if you’re showing property and see items of concern regarding the above items. These areas may allow you to negotiate the price of the home or ask for concessions to repair or replace. If you have any questions, please don’t hesitate to reach out.
