Bosley Realestate

On Property Insurance

July 16th, 2012 | House And HomeReal Estate

A few of our buyers have recently had some complications while securing property insurance for their recently purchased dwellings.

Here are a few tips we highly recommend you consider in order to avoid any future claim concerns:

First, if you are purchasing a condominium, we recommend using the same insurance company as the firm that holds the condominium corporation's blanket policy for the building. If you use the same firm and there is a flood or fire, there will be less issue resolving what components of your suite are considered 'standard unit finishes and features' and those which are deemed 'unit upgrades and betterments'. Nothing's worse that getting caught in the bureaucratic nightmare of resolving which company should be paying for your unit flooring, upgraded or otherwise.

Second, if you're purchasing an older residence in the City of Toronto, you'll soon discover a lot of insurance companies won't insure properties with knob and tube wiring. However, there are some who do provde coverage, albeit with provisions. These include providing an electrical certificate deeming the wiring as safe, or written confirmation that the knob and tube wiring in the dwelling comprises a small percentage of the overall wiring system. Click HERE for our own recent nightmare and summary of what knob and tube wiring is.

Here are some firms who are willing, at the time of this post, to insure properties with knob and tube wiring:

- Wawanesa
- Aviva (through PC Insurance)
- TD Insurance

Currently, these companies will not insure homes with knob and tube wiring:

- RBC Insurance
- Belair Direct

Third, when you call any insurer, they'll frequently ask a long list of questions in order to provide you a quote on how much your insurance premium will be. While this is standard practice, make sure you follow up after taking Possession and ask the insurer to send a representative over to inspect your dwelling and ensure the information you provided is accurate. After all, you don't want to find out after you've made a claim that the information you provided was incorrect, therefore nullifying your policy. Put the onus on your insurance company to inspect your property and revise your policy to meet their standards, if necessary, to ensure you have adequate coverage. It will protect you in the long run.

At urbaneer.com, we're here to make the process of homeownership as easy as possible. Do you have questions or comments? Don't hesitate to contact us here.

~ Steve@urbaneer.com
 

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