Unable to get Insurance?

tinker_2006April 1, 2011

My heart is set on this old house we found, needs a lot of repairs.. especially the electric, septic, roof and windows.

We're in Florida.. and I'm not sure how they insure in regards to these single pane windows, but we have been told that with the electrical as is.. they will not write a policy.

I'm sure some of you must have ran into theses issues buying a neglected home. Where you able to obtain some type of insurance while these repairs were done? The seller is selling "AS IS" moving out of state and doesn't want to fix these, and frankly - we rather do it ourselves to know it's done right.

Thanks for any info!

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slateberry51

You could look into getting FAIR coverage

Here is a link that might be useful: FAIR insurance explained

    Bookmark   April 2, 2011 at 9:03AM
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lesterd

You could also look into a short term policy with Lloyd's of London during the time the electric is being upgraded and then switch to another company afterward.

    Bookmark   April 2, 2011 at 9:16AM
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kudzu9

Have you been told that you can't get a policy by an insurance company, or just "people"?

    Bookmark   April 2, 2011 at 1:25PM
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artemis78

Are the systems non-functional (i.e., you have a construction loan v. a conventional loan), or just old? If they're just old, shop around for a new insurance company. Some won't insure older homes and systems, and others are fine with it. We've had a very good experience with State Farm, who we switched to when USAA refused to insure our old house with knob and tube wiring. If the house is unsafe or condemned and you can't get a certificate of occupancy till the repairs are done, you'll need to do some research to see what loans and insurance policies you're eligible for, but I know people buy these kinds of homes all the time, so I'm sure someone out there is insuring them. Single-pane windows shouldn't make a difference one way or the other for insurance; those are standard for most homes unless they were built in the last 20 years or so or have had windows replaced. HTH!

    Bookmark   April 2, 2011 at 6:50PM
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worthy

We've had a very good experience with State Farm, who we switched to when USAA refused to insure our old house with knob and tube wiring.

I guess it differs by area. Where I live, SF refused homes with k&t unless owners pledged to update by a certain date. Similar restrictions by other insurers on homes with aluminum wiring, old fuel oil tanks, galvanized water piping and less than 100 AMP electrical service.

    Bookmark   April 2, 2011 at 10:32PM
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tinker_2006

We were told by the inspector, that here in FL it is uninsurable due to the electrical the way it is (live, cut - hot wires!!)

    Bookmark   April 3, 2011 at 4:08PM
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tuckerj

We ran into a similar problem in new york, but our agent found a state insurance fund for our situation. they only insure the cost of rebuilding NOT any contents, much like construction insurance. Do yourself a favor and get an insurance AGENT, I know most people think they save money on their own but an agent will always find the best deal for you.

    Bookmark   April 3, 2011 at 10:01PM
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Billl

A home inspector knows about as much about home insurance as the average homeowner - ie not much. You'll need to get on the phone and make some calls. If the home is inhabitable, you should be able to find traditional insurance (but it could be quite expensive.) Once the repairs are complete, you can change insurance companies and get a lower rate.

    Bookmark   April 4, 2011 at 9:02AM
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tinker_2006

bii, yes.. we do realize this, and would always call an agent to get more details. With hurricane season approaching, and this house sitting on the bay with a bad roof and hot wires are a concern, but someone mentioned "builder's risk" insurance and that may be an option. We are not planning on residing in the house until these repairs are made, so we could switch at that time.

    Bookmark   April 4, 2011 at 9:29AM
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