When I first got in the business a little over six years ago, it was hard (but not impossible) to find an insurance company who would insure a home with knob-and-tube wiring. Well now, it's really hard to find that same coverage. Since I've been licensed, I've seen that same change in coverage concerning fuses vs. breakers. You can find the coverage, but now it's becoming less and less available. The change that I am starting to see now, is one that scares me quite a bit more than the other two. The issue--insurance companies not providing insurance on investment properties without a "lead-free" certificate. Now I am aware of the dangers of lead based paint, but eliminating coverage on homes with lead based paint is going to alienate a large portion of multi-family homes nationwide. We are seeing a huge influx in foreclosed multifamily homes in this area, if coverage can't be obtained, does the bank let them go at yard sale prices or do they let them fall into disrepair, stay as a non-performing asset and devalue an entire neighborhood? Abatement isn't cheap, so check with your insurance agency before you put that next investment under contract.
If you found this article helpful, check out this other potential nightmare when buying foreclosed property.
Joshua Matthews-Keller Williams Coastal Realty
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