Insurance Companies Are Tougher on Homeowners Insurance

Real Estate Agent with RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate

Insurance Companies Are Tougher on

Homeowners Insurance


What a difference 10 years makes in real estate and in home insurance.  In RI real estate we have so much waterfront or near waterfront that insurance companies can have stringent restrictions on whether they insure in an area or not for home buyers.  I am wondering whether other parts of the country are feeling the same pinch.
In a continuing education real estate class the other day a number of items that came fortune cookies in ri real estateup about insurance companies and homeowners insurance.  There seem to be a resounding concern among real estate agents that certain homeowner insurance companies are becoming so picky about items in a home from a wood stove to wind concern on a house.  One agent said that her client could not get homeowners from her present company due to 'wind force' as the insurance company determined.  However, this person lives in Kingston RI which is not on a mountain or near the water?!
Another complained about the insurance company not insuring in a neighborhood that I am in because they had 'enough' homes (their quota) insured there!  Another said that their client had to require the buyer to prove their pellet wood stove was installed to code & by a licensed company before they could obtain insurance.  Above all most of these insurance companies are 'demanding' to see the home inspection report!!
It seems insurance companies are being tougher on home buyers.  My advice early on after an accepted offer on the home is Buyers Call your insurance company and find out the cost and their questions to insure the home.  Or if the company you want will even insure it at a reasonable cost.  No surprises to be had here.  Is that your experience where you are at?
Insurance Companies Are Tougher on Homeowners Insurance
 Ginny Lacey Gorman is your go to North Kingstown Rhode Island waterfront and luxury real estate agent for southern RI real estate and beyond…knowing the geographic area, schools, happenings and important tidbits of local information. Email her 
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Waterfront, oceanfront, luxury and coastal Rhode Island estate are my specialty but all of RI is my backyard.  When you are in need of a real estate professional and specialist for your buying, selling or relocating needs and an internet savvy 
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the RI waterfront Realtor of Choice


Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.


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Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

One lesson I learned about Homeowners Insurance is that you get it quoted every year. The rules seem to change daily with them.

Nov 19, 2015 05:55 AM #25
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Whoa...demanding to see a home inspection? I haven't seen this yet, but wow

Nov 19, 2015 08:00 AM #26
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

No, but I'm sure your insurance company can't say 'we've got enough homes in your neighborhood'. I would have wrote the attorney general on that quote.

I'm sure that 'somewhere' a company has used an inspection & cited pre-existing conditions.

Nov 19, 2015 08:20 AM #27
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI

Coastal Property here is definitely something to think hard about before purchasing. Homeowner;s FLOOD Insurance is off the charts and the flood zones were pushed back even further inland.  Hurricanes, Tornados, flooding, has pushed all insurance upwards.

Nov 19, 2015 09:04 AM #28
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Some Dallas insurance agents have been asking for a copy of the home inspection.

Nov 19, 2015 09:18 AM #29
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Ginny,

Chubb & Lloyd's of London both started with tall ships, so far as I know. A little wind would probably not trouble them as much as others. Some clients have also had luck with Cumberland or Traveler's.

Nov 19, 2015 11:17 AM #30
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Insurance companies are in business to make money, so they are very selective in what dwellings they will insure. Therefore, every agent should know what perils are subject to the real estate and what type of dwelling construction is necessary to secure an insurance policy.

Additionally, fire hydrant location, fire department location, flood zones and other perils are impediments to both buyers and sellers. Therefore L3 and perils to the real estate must be factored into the sale price and cost of maintenance.

RE agents should secure a CLUE report on the property being sold, so their clients could see if any claims have been filed against the insurer for the preceding 5 years. If claims were filed against the property, the premium is sure to be rated higher than normal. 

Nov 19, 2015 03:48 PM #31
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

You are so right, Ginny!   My latest closing shift have been held up by the home owners insurance companies!     Never had that before now!

Nov 19, 2015 07:58 PM #32
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Ginny.  It is amazing how picky they have become.  Their costs are ridiculous.

Nov 19, 2015 08:59 PM #33
Chris Lima
Atlantic Shores Realty Expertise - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

Great post Ginny Gorman! It can be challenging here in Florida.  I do have a few agents on hand if my customers have any concerns.  The rates can vary and for that reason it is imperative for them to obtain quotes before closing.

Nov 19, 2015 09:45 PM #34
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Ginny Gorman congratulations on the well deserved feature..... some of those "new happenings" are out of control...  

Nov 19, 2015 10:06 PM #35
Carol Lynn Johnson
Re/Max Elite Realty - Franklin, NC
Residential Specialist

There is much that is out of control in the realm of real estate.  With the new TRID system and ever changing lender u/w guidelines, it's a wonder any of us sell.  It takes perseverence and a dogged determination to sell anything in real estate these days.  Ok, so I got up on the wrong side of the bed this morning.....I will workk to change that post haste!

Nov 19, 2015 11:26 PM #36
Bill Morrow
Keller Williams of Central PA - Mechanicsburg, PA
Bill Morrow, Associate Broker

Insurance companies are for profit businesses that operate under the laws of the state they are licensed in. That in itself is a conflict in reality. For Profit and Sate Regulations.  That being said, the for profit side of the equation is what it is all about. If there is a category or geographical area that is high risk, they have every right to opt out of providing services unless the state regulations require a certain percentage of their business be made available in high risk areas.

In PA, as part of our Agreement of Sale, we have the ability to select "insurability" as a contingency of the Agreement. If insurance is not available or overly expensive a buyer can be released from the agreement of sale without penalty. I make sure that my clients opt for that contingency. Only once was there an issue, but that buyer was very happy to learn of the insurance issues prior to moving ahead blindly.

Nov 20, 2015 12:45 AM #37
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good morning Ginny. I agree with Bill Morrow. We have the insurability contingeny clause that we can choose .

Nov 20, 2015 08:19 PM #38
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

This is so many insurance agencies are getting very particular.  I understand they have to be conscious of the risk factor...but some reasons for  a turn down don't seem to make sense.

Nov 21, 2015 12:00 AM #39
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Not too many weather-related issues here in the desert, but I always encourage buyers to start the insurance process early so we don't have any last-minute hurdles to overcome.

Nov 21, 2015 02:02 PM #40
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Ginny-Good points. I have not usually suggested getting insurance arranged early after contract agreement. Your post makes me rethink that. Thanks.

Nov 22, 2015 03:00 AM #41
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Ginny Gorman wonder why would they deny insurance for the home - unless the past owners had too many claims?

Sounds they are, indeed, tougher now-a-days.

Good idea to check insurability of the home.

Nov 22, 2015 03:35 PM #42
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I Had not heard of the "Insured too much in a neighborhood" one before.  It is true that insurance companies are about risk and they like to share that risk, that means spreading it around to other companies. 

Nov 28, 2015 02:52 AM #43
MaryBeth Mills Muldowney
TradeWinds Realty Group LLC - Braintree, MA
Massachusetts Broker Owner

Yes in Massachusetts we too have run into obstacles with insurance companies too.  A seller had to put a new roof on for the Buyer to obtain insurance, this posed a big problem as both the first time homeowner and the seller had their own financial restrictions ... but we got through it - (after our initial shock all the way around!)


Dec 29, 2015 11:46 PM #44
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