Coverage Issues Affecting Older Homes
have expressed concern over home insurance policies being denied or being
unable to obtain home insurance as a result of knob and tube wiring,
galvanized plumbing and empty basement oil tanks. A number of transactions
have fallen through on closing as a result.
to Insurance Bureau of Canada’s Ontario Branch (IBC), most insurance
companies will insure a basement oil tank provided it is less than 20-25
years old (depending on the insurer) and has been inspected by an
inspector approved by the Technical Standards and Safety Authority (TSSA).
Tanks older than 20-25 years are difficult to find insurance coverage for
and the TSSA recommends their removal or replacement.
also advised that, to their knowledge, very few insurance companies in
Ontario provide coverage for knob and tube wiring and galvanized plumbing.
Realtors may advise their clients to contact Genmark Insurance at
(416) 482-2089. Genmark provides home insurance coverage, across Ontario,
for homes with knob and tube wiring and galvanized plumbing. Genmark also
insures homes with empty basement oil tanks.
coverage for knob and tube wiring is dependent upon presentation of a
safety certificate issued by an inspector approved by the Electrical
Safety Authority (ESA). To locate an ESA inspector, contact (877)
421-2228. Coverage is also available for homes with galvanized plumbing
provided there have been no previous plumbing claims, the piping has been
inspected and, if necessary, pieces of corroded piping replaced.
Dunlop has an exclusive relationship with David Slack of Liberty Mutual to
provide insurance coverage for knob and tube wiring and galvanized
plumbing, if Carson Dunlop inspects the home. Carson Dunlop can be
contacted at (800) 268-7070. Mr. Slack can be contacted at (800) 971-1363.
Insurance Broker’s Association of Ontario (IBAO) indicated that their
members are having somewhat increased difficulty finding insurance
coverage for the above three issues but coverage is still available from
more than one “specialty” insurance company.
more information please see the following: