For Property Insurance, What Documents Will The Insurance Agent Need?
Documents to provide include a home inspection report, strata documents, property disclosure statement, plus images of the fireplace, hot water tank, and a list of contents and upgrades, etc. To obtain property insurance in Whistler, your realtor will supply you with the documents needed to insure your home. This should occur long in advance of the completion date in case there is something on the property that the insurance will not cover.
These are some of the documents you will be relying on:
- Details provided in the Home Inspection Report
- Wett Certificate for each non-gas fireplace
- Image of label on each fireplace
- Image of label on each water tank
- Estimated value of upgrades
- Estimated value of contents
- Details of Alarm Security Service
- Details of water sprinkler shut-off system
- Property Disclosures Statement (PDS) showing the age of the roof
- Half-duplex: proof of party wall agreement or strata corp insurance
- Strata Insurance Under Destruction (IUD) quota
- Strata Insurance document
When Do You Need to Get Home Insurance?
You want to know about coverage long before completion date in case there is an issue with getting insurance coverage. The following items need your attention so the insurance agent has everything required to provide a quote.
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) Upgrades and 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. Therefore, take photos of the upgrades done to your property as proof for the insurance agent. 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. Take photos of all your contents, and where possible include yourself in the photo.
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.
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