Our New Old House

1918 Bungalow


Insurance woes

I just spoke with the assistant to the insurance agent who insures our other house and our cars.  They can’t insure our new house because there’s so much below code right now. 

I told him we’re getting a construction loan to fix exactly the things he said were wrong with the house.  He seemed really positive about that and said that once those repairs are done they can come out and take another look at insuring it.  But that’s all.

Then I talked to our loan originator who said that of course we MUST have some sort of insurance coverage, and she suggested requesting a “builders risk” policy.  I’m not sure what that is, but I’m expecting it will have a higher rate, which is fine because once we have the repairs done we can move it over to a regular homeowner’s policy.  But I was surprised that the guy I spoke to didn’t even mention that as a possibility.  Do insurance companies not like to write builders risk policies?  Is that why he didn’t mention it?  It’s a State Farm agent, so it’s not like they’re some tiny company that can’t do something like that. 

 If anybody wants to leave me a comment or shoot me an email with any information you know about builders risk insurance policies, I’d be happy to hear from you.  Frankly, I’m a little worried at this point and I’m looking for reassurance that this isn’t a major setback. 


2 Responses to “Insurance woes”

  1. August 10th, 2007 at 7:53 pm

    John says:

    I don’t know anything about builders insurance per se, but we had similar problems with our house. We had to get a very expensive policy through Foremost Insurance to cover it while we were working on it; that sucked but at least they covered us, right? Well, things just went to pieces once we moved in. No one (Nationwide, State Farm, etc) would insure us for a variety of reasons. First we had to complete the paint job. Or we need to clean up the yard. Or we needed a hand rail, etc. The message we got from all of this is this: unless your house is a brand new cookie cutter with risks associated with it as we define the rules, bugger off.

    Best of luck to you.

  2. August 11th, 2007 at 12:14 am

    ripped says:

    You may want to go to http://www.hobb.org and email the president (homeowners for better building)
    Her email is on the site. I am sure she can explain this to you better then almost anyone.
    HOBB is a national grassroots organization

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