Can I be denied home owners insurance?

Asked by jelove, 91942 Sun Sep 23, 2012

I am going to buy a home out of my deceased mothers estate.The home has some issues I am aware of.The house is being sold to me "As is".I plan on having a home inspection prior to owning the home so I am aware of the inspection reveals.I am concerned I may not be able to get this house insured with the problems it has.

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Cory La Scala, Agent, San Diego, CA
Sun Sep 23, 2012
Hi There,

One of the things you want to do during your inspection contingency period, is to be sure you can get home owners insurance. Rates vary widely, so call several companies. If you're using a loan for the purchase, the lender will require evidence of insurance, so be sure to get a jump on that.

Also, you mention issues. Some lenders won't fund a loan until certain issues are addressed. The underwriter will make those issues "conditions," which will have to be satisfied before close of escrow. You may need a renovation loan. Your lender will want to see the inspection report, so they'll know what those issues are. It would be better to call some lenders and inquire about loans with the conditions you do know exist. In this case, the more information you have up front, the smoother escrow will go. And, escrow is not a good time to discover unwanted surprises, like not being able to get insurance or financing.

Good luck, and let me know if you have any questions.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
Lic # 01443391
1 vote
Hi Cory,
My brother is the executer of my mothers living trust and has insurance on the house.I do not need a lender for a loan.What I do need is being able to get this house insured once I get an inspection on the home.I already no the home has some issues.Water leaks in the fireplace.Shower has a leak somewhere.Toilet is turned off due to water flowing on the floor when flushed.Radiant heat in the ceiling hasn't been used in years.Water heater old and probably not up to code.No heater strap.I'm sure the inspection is going to uncover more issues and I hope it is not mold.My main concern is getting home insurance on this home with exsting problems.Concerned they won't insure me and I can't buy the house without insurance.Thanks for your advise
Flag Sun Sep 23, 2012
Steve Quinta…, Agent, Albuquerque, NM
Mon Dec 3, 2012
The first step is to call your insurance broker and get a quote. Then you will know if your concern is valid.
0 votes
Mary Lawler, Agent, San Diego, CA
Sun Sep 23, 2012
Hi Jelove,
I'd start by calling insurance companies to get rate quotes. In some cases, an agent comes out to actually see the home to see if it is insurable.
A home is almost always insurable - sometimes at great cost due to location and other risk factors, but getting a loan may be harder to obtain if the condition of the home is poor. Then you'd have to consider other loan options called renovation loans.

Best of luck!
Mary Lawler, Realtor
RealtyExecutives Advantage
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0 votes
Hi Mary,
I don't think I will need a renovation loan.I have some funds.I would like to fix the issues before an insurance inspection,hoping the funds are enough to cover it.I don't no if the executer will allow that,who is a family member and controls the keys.I think my next move is to go talk to the attorney the executer is working with in regards to my moms estate.I am sure you have seen alot of things being an agent.Have you ever sold a home "As is" with things wrong with the property and price firm where the buyer had problems when trying to get insurance on the property? How do these house flippers get insurance from properties they buy up that need major renovations?Thanks for any advice
Flag Sun Sep 23, 2012
Cindy Davis, Agent, San Diego, CA
Sun Sep 23, 2012
All you can do is call a common carrier for home insurance and ask!
0 votes
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