|
Homebuyers have expressed concern over home insurance policies
being denied or being unable to obtain home insurance as a result of knob and
tube wiring, galvanized plumbing and empty basement oil tanks. A number of
transactions have fallen through on closing as a result.
According to Insurance Bureau of Canada’s Ontario Branch (IBC),
most insurance companies will insure a basement oil tank provided it is less
than 20-25 years old (depending on the insurer) and has been inspected by an
inspector approved by the Technical Standards and Safety Authority (TSSA). Tanks
older than 20-25 years are difficult to find insurance coverage for and the TSSA
recommends their removal or replacement.
IBC also advised that, to their knowledge, very few insurance
companies in Ontario provide coverage for knob and tube wiring and galvanized
plumbing. Realtors may advise their clients to contact Genmark Insurance at
(416) 482-2089. Genmark provides home insurance coverage, across Ontario, for
homes with knob and tube wiring and galvanized plumbing. Genmark also insures
homes with empty basement oil tanks.
Genmark’s coverage for knob and tube wiring is dependent upon
presentation of a safety certificate issued by an inspector approved by the
Electrical Safety Authority (ESA). To locate an ESA inspector, contact (877)
421-2228. Coverage is also available for homes with galvanized plumbing provided
there have been no previous plumbing claims, the piping has been inspected and,
if necessary, pieces of corroded piping replaced.
Carson Dunlop has an exclusive relationship with David Slack of
Liberty Mutual to provide insurance coverage for knob and tube wiring and
galvanized plumbing, if Carson Dunlop inspects the home. Carson Dunlop can be
contacted at (800) 268-7070. Mr. Slack can be contacted at (800) 971-1363.
The Insurance Broker’s Association of Ontario (IBAO) indicated
that their members are having somewhat increased difficulty finding insurance
coverage for the above three issues but coverage is still available from more
than one “specialty” insurance company. The IBAO was unwilling to provide a list
of these insurers and suggested that Realtors advise their clients to locate an
insurance broker through their web site.
The above article was copied from the
Ontario Real Estate Association
web site.
For more information please see the following:
Grassroots
Inspection Specialists Information Library
Carson Dunlop
Reports
ELECTROSPEC: All Around the
House
Insurance Bureau of Canada
Insurance Broker’s Association of Canada
Technical Standards & Safety Authority
Electrical Safety
Authority |