In todays market, Insurance companies standards are tougher! They will look at both the home and the insured.

Individuals with a number of claims, policies that have been cancelled, declined or lapsed, or poor credit rating may see their applications declined or a premium added to their policy.

If you are looking to purchase an older home that has galvanized steel plumbing, 60-amp electrical service, knob and tube electrical wiring, a wood-burning stove or a fuel oil tank, make sure to factor the cost of necessary upgrades into your offering price! As your insurance company may require upgrades to be completed prior to obtaining homeowners insurance coverage.

Knob and tube wiring, also commonly found in homes over 50 years of age, consists of parallel hot (black) and neutral (white) wires, separated by knobs (or insulators) and ceramic tubes. Knob and tube wiring is considered a higher risk than contemporary wiring installations

Most insurance companies will only insure a fuel oil tank provided it is less than 20–25 years old and has been inspected and certified by a Technical Standards and Safety Authority (TSSA) inspector. If your oil tank is 25 years or older, your insurance company may require that you remove and replace it with a gas or electrical furnace, prior to providing you with homeowners insurance coverage.

Given the wide range of inspection/upgrade requirements that insurance companies may have, it’s always best to speak to your insurance Broker, and if making an offer on such a home, to include a clause subject to you the Buyer  obtaining home insurance..

More information can also be had at The Insurance Bureau of Canada’s website@ www.ibc.ca.