In recent months, tough new policy guidelines have been introduced and imposed by many Home Insurance companies, which are affecting many buyers, sellers, and homeowners alike.

Below is a list of the areas some Home Insurance companies are targeting:

  • Electrical service size must be a minimum of 100 amperes.
  • NO ‘Knob and Tube’ electrical wiring. NO Galvanized steel plumbing (all pipes must be ABS plastic or copper).
  • NO Underground fuel Oil Tank.
  • NO Indoor fuel Oil Tanks if more than 25 years old. Fuel Oil Tanks between 10-25 years of age may be accepted with an approved tank Inspection Certificate.
  • Roof shingles must be in good condition.
  • Wood-burning stoves must be professionally installed & include a label of certification.
  • Cottages are also subject to all of the above and must have year round road access.

As a result of these new guidelines, homebuyers may be finding it more costly and difficult to secure Home Insurance, especially on the purchase of older homes typically built before 1960.

Some Home Insurance companies are offering temporary or conditional coverage to homebuyers who have just purchased a home but have not yet closed, at a surcharge ranging from 400% to 1000% of the usual premiums.

In light of the above, it is more crucial now than ever to enlist the services of a real estate professional to represent your best interest in the purchase and/or sale of your home.

If you have any questions about your Home Insurance or any other related Real Estate question or service, please feel free to contact me anytime.


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