Insurance Concerns?
There can be many areas of a home that prevent a property from being eligible for insurance such as the condition of a roof, plumbing, HVAC, or electrical system. Once you have your home inspections, it is critical that you review your reports and know which areas need to be addressed for you to be able to move forward with securing an insurance policy.
Cloth Wiring
Cloth wiring is a type of electrical wiring that was common in homes built before the 1960s, whereas newer homes are built using safer insulations with thermoplastic coatings. As the name suggests, cloth was used to insulate the wiring and conductors. This is considered hazardous for today's standards and many carriers will not insure a home with cloth wiring present. It is often associated with knob-and-tube wiring, which is also considered to be potentially dangerous. While some homes have cloth wiring that has a Romex, or a similar polymer, insulation, the cloth is still present as an outer sheathing and would be marked as cloth wiring on a 4-point inspection. It is always recommended that you consult a licensed electrician to evaluate the condition of the wiring as it can become brittle and worn over time reducing its effectiveness and therefore your safety. In some cases, it may need to be completely removed for the home to be eligible for coverage with an insurance company. Give us a call to discuss your options with carriers that may accept a home with cloth wiring present.
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Polybutylene Plumbing
Polybutylene plumbing, commonly referred to as poly pipes, is a grey flexible plastic type of plumbing used in homes that were built or renovated in the late-1970s to mid-1990s. It will have the code "PB2110" printed on it. There is some debate as to whether it is the plumbing itself or the connectors and installation that cause the pipes to fail; either way it has become an area of concern for insurance companies. Every carrier has different eligibility guidelines. Many carriers will not accept a home with polybutylene present, however, there are some carriers that will accept the risk with limited water damage coverage or a full water damage exclusion as long as the pipes are showing no signs of deficiencies or leakage. The plumbing does not typically affect the overall premium, but water damage claims can be one of the most common, so having a policy without water damage coverage can increase your out-of-pocket expenses in the long run. Insurance carriers do not assist with the replacement of this type of plumbing in the event you purchase a home and have trouble finding coverage. It is important that you address any concerns with a licensed plumber prior to obtaining a policy. Give our office a call to discuss your options for homes with poly pipes.
