Any other homebuyers having trouble getting insurance policy?

Question

I'd like to know if other homebuyers especially of fixer-uppers are having trouble getting the property they are going to buy insured. How did you get the mortgage and close on the property? I'm about to pay for a FAIR plan which is sooo expensive just so we could close. Any other way? We are closing soon so there is a time element involved. We lost so much time looking for insurance agents willing to cover. By the way, it's in the northern Baltimore area.

Answer 1

The few always spoil it for the masses. The reason insurance companies don't want to insure homes that need new roofs, plumbing and cosmetics is because in most states if the house is in that condition when the policy is written, the insurance company can't "get off" of the policy once they write it. Most companies have underwriting guidelines that state roofs need to be 15 years old or newer, there needs to be circuit breakers and not fuses, and the furnace must be updated in the last 20 years. Where you live there are probably a lot of homes that are selling way over their actual value, and believe it or not the bubble is going to burst some day. Buy the Fair Plan policy and get the house fixed up ASAP. PA Fair Plan returns the unused portion of the policy, don't know about MD. I'd just get it fixed up as fast as I can and then get an honest to God NORMAL homeowner's policy. Have you tried W.N. Tuscano Agency in Greensburg, PA? They are a brokerage house, and may be able to help, but they are not cheap either. The difference may be that you will be able to but a Home Owner's policy and not just a Dwelling policy.
Good Luck!

Answer 2

It all depends on why they are declining coverage. If it is because of the condition on the home it is very possible you could get basic course of construction coverage until the home is "fixed up" . If you are going to be living in the home and need a true homeowners policy you may want to look at buying structure only coverage so that your loan will close, buy a separte liability policy, which beleive it or not is very affordable (depends on your state of course) and once the home is made insurable look at the true homeowners policy that will cover your personal property, the building and the lialibty together. The gap is in coverage for your personal property until a real homeowners policy can be had. If your things will be in storage you can purchace a tenents policy for the interum. Good luck to you.

Answer 3

Yes, this is a common problem, as many carriers don't want to insure a house that needs major repairs or updates (roof, wiring, plumbing, heating) or that's valued under $100,000.

Before you go to the Fair Plan, try Foremost Insurance. They have a more comprehensive policy than the Fair Plan. www.foremost.com

Answer 4

Fair plan is probably your only choice for a "fixer upper", expecially if the home is going to be vacant while being renovated. Fair plan is very expensive and very poor coverage, it does NOT cover liability. Once the home is livable and free from hazards you should shop for better coverage. Good luck to you.

Answer 5

Can't answer your question directly, but if you're near the Coast, this is going to be a common occurrence in the near future. For all Coastal properties.

Heard talk from Ins. Cos on TV.

Answer 6

once you're the owner of the coverage, and the beneficiary, you may declare the charge now. existence insurance does no longer go by ability of probate, and your dad knows that and is only attempting to bully you. appears like you lost both moms and dads even as your mom died. Sorry to hearken to that. Take the money your mom needed you to have, and split it jointly with your siblings in case you want. do a touch sturdy on your mom's behalf and needs. desire this enables.