What condition must the home be in to insure it?

Question

I'm about to buy an investment property and it's a little rough. A few windows are broken and it's a mess. What the minimum condition an insurance company will cover it?

Answer 1

All insurance companies are different. The last time I checked, shelter offers a vacant property policy. Just understand that these policies are expensive, and usually only last 3 months and then you have to pay again. Vacant houses are subject to vandalism, theft, etc. so the insurance companies charge a lot for the policy.

Answer 2

If it is vacant you need a vacant policy, check out vacantexpress.com for more info. It is expensive but... not sure what the condition the property is in but through my experiences most companies will not insure these. You can get them to initially insure them but when they do the inspection they will cancel if all of the repairs are not completed in 30-45 days. Try Foremost they insure "rough" properties but not vacant ones. Get the right policy from the get go, it will make your life a whole lot easier. Don't lie on your applications !

Answer 3

In my area they want to make sure the house is weather tight. The roof needs to be in good shape and the windows fixed. I don't know about working plumbing and such but I bet that would be required also.

Insurance companies have found that some homes are more likely than others to be claimed as a loss and they try to avoid those.

Answer 4

Depends on the insurance company. There are many factors. If this is a double wide or is vacant, you will be paying a bundle. Best to get quotes prior to buying.

Answer 5

Usually the building must be inspected annually by the fire department which makes out a report which is available to your insurance company.