Jdame95, Home Buyer in Saint Louis, MO

Closing on a house within a week and have a policy in homeowners policy in place. In the home inspection it was stated that the roof had less than 5

Asked by Jdame95, Saint Louis, MO Sat Nov 2, 2013

years of life left. This made actually getting a policy a challenge.
The company that I did get a policy with is now asking for the report and I'm kinda paranoid that they will drop my policy. Should I be concerned? What could happen if they did go further? Would I have a grace period to install a new roof?
My deadline to submit this into to them is 3 weeks after I close on the house.

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Ok, discuss this with your Realtor. In the standard St Louis contract there is a 10 day period for the insurance company to check the house and tell you if they will give you insurance or not. Some but not all insurance companies will send someone out to physically check the house, others will only do a clue report and check to see what claims have been filed against the home on line. There are a couple issues that I see here

1) The HUGE issue (I have experienced this one), is when a company says they will give insurance, then no one comes to check the house until after closing, they dont like something (like your roof) and your only option is a new expensive roof with you paying full cost by yourself, finding a new insurance company or forced insurance being put on the house at a very high rate. Talk to your insurance company NOW and make sure that if they need someone to physically look at the house, thst has happened.

2). The insurance company is asking you for a copy of the building inspection report rather than sending someone out yo look at the home in order to establish a "base line" for the home's condition - then if you file a claim later, they will look at the report and say, oh the roof had only five years left so we are adjusting what we are paying you accordingly, or this area already had some damage so we are adjusting our payment and not paying for that portion of the repair.

I would talk to some other insurance companies and get competitive bids. Just make sure the title and mortgage companies know which insurance company is the one you have decided to use when they prepare the final HUD and run their numbers and pay that first payment for you
1 vote Thank Flag Link Sat Nov 2, 2013
If they are asking you for the report it would appear they already know what they are looking for at this point. If you hide the information they could deny the policy (or a claim which would be worse) based on misrepresentation. Some companies will give you time to repair/replace a roof but it is at the insurance companies discretion. It sounds like they have the same concerns you do. What I mean is you realize the importance of having insurance due to the age of the roof which is what the insurance company is concerned about also. An older roof is more likely to allow water in and water damage coming in from a roof is very expensive to repair. My suggestion is give them the information they are asking for and wait for a response. In the meantime be proactive and shop around with some independant agents that specialize in home insurance so you can have a backup plan should need it. Never hurts to compare anyway.
0 votes Thank Flag Link Mon Nov 4, 2013
Talk to your Realtor and insurance agent about this. With the policy in place, you shouldn't have any problems with closing, but the problem that Dale mentioned could come up or others, depending upon the type of policy you have in place. Building inspectors aren't usually roofing experts though, and its hard to predict when a roof will give out. A lot of it depends upon the initial installation and roof characteristics beneath the roofing material.

Get some additional opinions on the roof condition and ask your insurance agent what the company policy is. Roof replacement is the greatest claim made to insurers, so they don't want to take on a new policy when the roof is already shot, but that's something that is usually addressed during the inspection period of a contract.
0 votes Thank Flag Link Mon Nov 4, 2013
Hello, you need to negotiate with the seller and get the credit towards the new roof. The insurance co. will probably not cover the roof. Boris Morozovich
0 votes Thank Flag Link Sat Nov 2, 2013
You defiantely need to speak to your agent. If you can't get the home insured then you can't get the loan. Catie Mooney
0 votes Thank Flag Link Sat Nov 2, 2013
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