Lack of Property Insurance (Ontario)
Question:
My clients are closing soon on their property and they have been inquiring about insurance and they are getting rejected. This is an old end row house. There is no firewall between the wall that is attached to the house next door. This is what some insurance companies are having an issue with. What should be done?
Answer:
1) Contact the other agent to see which insurer covers the building now, perhaps they will continue. The difficulty is that sometimes, they want out.
2) Potentially, this could be a very risky situation. You have to calculate the second requisition date and make sure that the lawyer is aware of the fact that insurance (so far) cannot be obtained. If that date goes by, the Buyer must close no matter what, so at the very least will likely lose his deposit because the mortgage funds cannot be advanced.
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