Home insurance: not a subject to arouse much interest or curiosity beyond the suspicion that one’s insurance premiums might increase due to losses incurred as a result of some natural disaster thousands of miles away. Of even less interest and likely complete incomprehension, would be the matter of what exotic data and statistics are employed by actuaries to calculate different levels of risk: the probability of a claim and the approximate cost to settle a claim depending on the nature and type of claim which is to be insured. From time to time insurers change or update their policies to reflect changing circumstances. Many homeowners will be familiar with the requirement to replace oil tanks deemed to be too old - depending on the insurer, no older than 20-25 years. A prudent change instituted in the last 10-15 years as old tanks were coming to the end of their lifespan, to preclude an avoidable and potentially very costly mess. In the last year or two it has become apparent that insurers are becoming choosier about what they will and won’t insure. The following are a few recent examples that were previously unknown. One insurer would not insure a property due to the existence of aluminum wiring. Another insurer would not insure a property because the property was “too old”. Some insurers now request a copy of the building inspection report that the new buyers routinely have done at the time the property is being sold. This, to allow the insurer to determine what repairs or replacement the insurer decides must be undertaken before coverage is put in place. So: time to get out your policy and have a look at the “fine print” or as the policy comes up for renewal, inquire about any changes in the works. First time buyers would be well advised to do some preliminary homework before getting too far into the home buying process to see what limitations they might encounter with different insurers.

** BRIAN KEMP **