Insurance company underwriting guidelines force sellers to spend thousands of dollars on upgrades so buyers can obtain insurance, without insurance a buyer isn’t able to obtain a mortgage.
More and more we see changes in what insurance companies requires before they will bind a policy. Some of the bigest issues we are seeing in St. Petersburg FL is electrical upgrades to come build before the 50’s. Homes build before this date often have cloth wiring which today is almost impossible to insure today.
Before considering selling a home, have the wiring checked, if you have cloth wiring, have it replaced before you list the home. I recommend this so you have time to shop around and get the best price rather than working on a timeline in the contract and end up paying more.
Another possible issue we see coming up is galvanized water supply lines, over the last 6 to 12 months home inspectors are required to list the percentage of galvanized supply lines in a home on a 4 point insurance form, right now I’m not seeing insurance companies requiring it be replaced before they write a policy, however when they start gathering information like this I see a change in the near future.
Considering selling or buying a home? Might working with a Realtor who knows about construction & keeps upto date with insurance requirements help to keep the sale on tract and deal with issues in advance? Call us today.