Need Insurance On Foreclosed Property
I am purchasing a foreclosed property for $67K and need to get homeowners insurance. I have no information on when the services to the house have been installed or updated . . . information that insurers need to write a policy. I plan to completely renovate the house and sell it; although, I have it mortgaged as a primary residence. (It was the only way I could think of to get 100% financing.) Comps in the area are about $120K. All that said, what in the world can I do to get insurance! I know it is "high risk" so I am prepared to pay the extra money but it seems that all of the insurance companies that I have called want data which I can't provide.
Does anyone out there have any information that can help me ? I will be closing within a week![ Edited by rhillsman on Date 03/27/2004 ]
How about the State pool, or "FAIR plan"? Can you not get into the property or at least outside to see the electric, etc... thus answering the questions the insurer needs? Tim
Sure, I can get into the property . . . but looking at something visually isn't going to necessarily tell me how old the plumbing, and electrical are. There has been some updating on the house but nothing consistent or definitive. Ispoke to someone last week who said that I could not get liability insurance. That's important since I will have people in the house working on it.
Check the county tax records.......it will have the year the house was built. (if you don't already have that info) The plumbing and electical can't be older than the house it's self....unless it took the builder years to build it.... I don't know what else to tell you. You say you have a mortgage on it already...to get insurance on my primary residence, I just gave them the paperwork that I had from purchasing the house. I don't know if that helps you any...but there it is.
It sounds like you need to find an Agent that's willing to do a little work (and is familiar with REI). Companies will write insurance, liability included, for a price. If you can get health insurance on your pet, or UFO abduction coverage, you can get insurance on the property...
What ever you do, DO NOT lie on an insurance application.
You failed to mention exactly what information they are asking of you.
You cannot get Homeowners insurance unless you are living in the place.
Get a contractor to look over the place. He can certainly tell what is not up to code.
Right now sounds like you have financial fanny hanging out in the breeze. Not good.
Liablility insurance may not cover you if one of the contractors employees has an injury/accident. Depending upon your arrangement with him you may be deemed to be an employer and therefore required to have Workers Compensation coverage. In some states if you don't, you can have an award of triple damages against you.
Get a certificate of insurance from the contractors agent, not from the contractor.
Post the property, No Trespassing. That can serve to limit your liability from univited guests. Good Luck!
YOu need vacant property, or builder's risk type insurance. If the property is vacant more than about 30 days then you lose coverage on vandalism (kids starting fires) and other coverages. Unlikely you will be able to renovate or even rent the property in 30 days.
Brenda
In Ohio, at least in Hamilton county, any electrical work that is done to a house must be inspected and approved. On the outside(or somewhere near) the junction box is a sticker stating the date the inspection took place. That will give you an idea of the age of the wiring. Of course, if it hasn't been updated or not legally updated, it may not have that sticker. Also, check the pipes. If it's all PVC, chances are it isn't too terribly old.
The best bet is to have an inspection just to make sure, especially if you're not familiar with building materials and the stages they were used.
Good Luck!!
Sickdog
check with the planing dept for any previous permits
THANK YOU J_owley, sickdog and 642freedom! I got the information that I needed from a quick trip to the municipality's Permits and Inspection office. Now I can get regular homeowners insurance.
buylow007, I didn't want to or plan to lie in order to get insurance. This is my first property and although I like it, I don't really want to live in it. It is too far away from my job in my opinion. It is more like a purchase that has turned into an investment.