Insurance

Your Insurance Agent Requires Information

The Contract of Purchase and Sale should have a condition that the Buyer will research the cost of insurance. It is prudent to start talking with an insurance agent during this due-diligence period. The insurance agent has a list of requirements to offer you the best deal possible. By leaving this process to a few days before completion makes this a stressful process.

Buyers may need their realtor to compile all the documentation for the insurance agent in order to facilitate an insurance quote in a time-sensitive manner. You really want to know about coverage well before completion in case there is an issue. The following items need your attention so the insurance agent has everything required to provide a quote.

Provide to the Insurance Broker

Here is a list of the documents required by your insurance broker to promote a speedy quote for insurance:

  1. Details provided in the Home Inspection Report
  2. Wett Certificate for each non-gas fireplace
  3. Image of label on each fireplace
  4. Image of label on each water tank
  5. Estimated value of upgrades
  6. Estimated value of contents
  7. Details of Alarm Security Service
  8. Details of water sprinkler shut-off system
  9. Property Disclosures Statement (PDS) showing the age of the roof
  10. Half-duplex: proof of party wall agreement or strata corp insurance
  11. Strata Insurance Under Destruction (IUD) quota
  12. Strata Insurance document

1) Home Inspection

The home inspection report will be a source of information that you can provide to your insurance agent.

Heat: Know the type and age of the heating. Each woodstove should have a label on the back of it. Take an image for the insurance agent.

Electrical: In the seventies, aluminum wiring was used in the house. The connection between aluminum wiring and more recent copper does not transmit electricity at the same rate. Your insurance agent will want to know about the wiring.

Plumbing: Poly B pipes were part of the building materials used from 1970 to 1990. In your home inspection report, the Home Inspector should identify this type of plumbing. The insurance agent if the property you are buying has Poly B pipes. Asbestos-wrapped cast iron pipes may be identified by the. Needless to say, these are a problem for the insurance broker.

Roof: Any issues identified with the roof.

2) WETT Certificate

Wood Energy Technology Transfer (WETT) Inspector is one of the people you will be relying on when purchasing a property with a wood-burning fireplace. The insurance agent will need a WETT Certificate for each fireplace. Note: if the fireplace is gas, then no WETT certificate is needed. For more information, please read my blog on WETT Certificate.

When there is no WETT certificate the insurance agent may have a limited number of options of brokerages willing to provide affordable insurance coverage.

3) Fireplaces

If there is a pellet or wood burning stove, or any type of fireplace insert, there may be a label on it somewhere. This is a great piece of information for your insurance agent.

4) Water Tank

Water damage from a tank is a big problem. In strata buildings, the strata now says that once the tank is passed its warranty then it must be replaced. In a house the owner may have an older tank because the home was used seasonally. This will be a red flag to the insurance company. There is a label on the water tank. In addition, when a water tank is replaced the plumber typically writes the date of the installation. However, best not to rely on the date written on the tank.

5) Improvements in Strata Properties

Should the strata property burn to the ground, it will be rebuilt according to the original strata plans. Although the property was built 30 years ago the quality of the interior finishes will be rebuilt to the same standard and design of the original build. Inform your insurance agent when there have been modest or significant renovations and provide an estimate of the improvements.

6) Contents

It is important to provide your insurance agent with an estimate of the replacement value of your contents. When purchasing a strata property, you may only be required to purchase content insurance. If your contents include something of high value, it would be prudent to inform your insurance agent.

7) Alarm Systems

The insurance broker favors a property with an alarm system. There are some insurance brokers who are reluctant to insure a property with no alarm system. These systems can be easily and quickly installed. If the property does not have a system, the insurance agent may need proof that one will be installed.

8) Water Shut-off System

The water sprinkler shut-off system is viewed as a positive by the insurance agent. Not all properties have this. Provide the insurance agent with details.

9) Property Condition Disclosure Statement (PDS)

A roof that is older than 20 years will be a red flag to an insurance agent. The insurance agent may offer you insurance but exclude coverage for anything relating to the roof. If there is a leak in the roof the damage that this will cause may not be covered due to the age of the roof. The age of the roof should be noted on the Property Condition Disclosure Statement.

10) Half-Duplex

When buying half a duplex insurance comes into question. The duplex either operates as a duplex under the BC Strata Property Act or operates as two separate halves. I have taken the following from Johnson Franklin Bishop Lawyers in BC.

“A party wall agreement can be used to legally divide a property where stratification is not possible or feasible. Essentially, under a party wall agreement, each party would transfer their half-interest in the other’s lot to the other such that each would own their own lot in its entirety.”

The Party Wall will be registered on the title.

11) Strata Insurance Under Destruction (IUD)

When a strata property is developed as a plan, the share of each strata lot is calculated and given a value. This value is known as the Insurance Under Destruction (IUD). The IUD value stays with the property and never changes. The insurance agent will want to know the strata IUD value.

12) Strata Insurance Document

The strata minutes provided by the listing agent will have a copy of the insurance document showing insurance coverage for the strata development. Your insurance agent will want a copy of this document.

Next Steps

There are more components to insurance that those listed above. Talk with your insurance agent and disclose how you are planning to use the property. Jason of The Whistler Insurance Shoppe is my go-to for insurance. However, make sure you have all the documents in order or that your realtor has provided you with a package of documents. Jason is in demand because he is thorough.

Buying real estate in Whistler, whether ski-in/ski-out or not, is a smooth process when working with an experienced Whistler real estate agent who follows the rules. Everything in real estate, except for writing the contract and the negotiation is a process. Experienced realtor, and skilled negotiator, Marion Anderson will work with you directly from start to finish. No assistants are involved.

If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me. I look forward to hearing from you.

It’s a Good Life in Whistler!

Marion

Marion Anderson Personal Real Estate Corporation

marion@WhistlerSkiinSkiout.com (604) 938-3885