What You Need to Know about Insurance Remediation
Whether purchasing or building a home, it is imperative home buyers know certain things about their home and the insuring process prior to making a commitment. Last week, we touched on the dangers of aluminum wiring and the effect this wiring has on insurance policies. This week, we will take a more in-depth look at what insurance adjusters and home inspectors look for and how it affects your policy. As a licensed and insured electrical specialist, we will focus on this aspect.
A True Story:
A real estate broker offered a house for sale 6 years ago. The previous owner sent a home inspector to assess the property, found everything to the buyer’s liking, and the house was purchased via a mortgage shortly thereafter. Recently, the new homeowner had another inspection done as he was looking to re-mortgage the property for a lower rate. The new inspector found the house was wired using primarily aluminum wiring. When this was reported to the homeowner’s insurance company, the policy was deemed void. The homeowner is now suing the real estate broker and the previous owner for not disclosing the wiring problem. The new homeowner is also in a bind with the bank because the lender requires the financed home to be insured.
Who should foot the cost for bringing the home up to code? Who is responsible for the insurance policy being declared void? Unless the parties involved can come to a mutual agreement, it is the new homeowner who is ultimately responsible for the cost of re-wiring the home. This is not an expense they expected. Certainly the initial home inspector can be held liable for an error/omission in their inspection and reporting but that does not help the homeowner at this moment.
This is just one of many scenarios that can – and does – play out when an inspection is not done properly. On the other side of the coin, if a homeowner knows about aluminum wiring or other problems in their home and does not disclose this to their insurance company, this is considered fraud. Again, another reason for the insurance company to abruptly cancel the policy. Should the home be subject to a fire and loss, a “Cause and Origin” investigation will always be conducted. If the damage is caused by aluminum wiring that was not remediated, the claim will nearly always be denied.
Why Immediate Remediation Is Vital
Not only does remediation save homeowners from catastrophic financial losses, it protects the lives and property of all those in the home. Only a small number of insurance companies will underwrite insurance coverage for unremediated aluminum wiring issues. Fewer still are those who will write a policy for aluminum wiring that was “fixed” using purple “twisters” and aluminum/copper switches and receptacles. If a company does write a policy with these issues present, premiums and deductibles are typically sky-high, making is more affordable to simply fix the problem.
Custom Electrical Solutions can fix these problems! We specialize in insurance remediation. Our professionals provide exhaustive inspections of all electrical systems in the home. We go above and beyond to ensure an accurate quote and high quality remediation work. We strive to locate and resolve every problem, every risk, affordably and efficiently. Your safety and complete satisfaction is always our highest priority.
Before you shop for new homeowner’s insurance, or if you suspect your last inspection was less than accurate, call our fully licensed and insured team at 954-464-5507. Custom Electrical Solutions, Inc. proudly provides insurance remediation services for all of Broward County, including Fort Lauderdale, Tamarac, and Sunrise.
