Fixing those Insurance Concerns

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When it comes to home and building insurance, property owners are really at the mercy of the insurance industry. Whether it is to avoid major premium increases or to start a new policy, insurance companies can make requests that if not completed could mean you don’t have coverage. This is done to minimize the risk the insurance companies. As a large volume of similar claims come in, the insurance industry will look at how they can get property owners to improve their homes to decrease potential future pay outs.
Some things that your insurance company may look into are knob & tube wiring, oil tanks, and water piping.
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Knob & Tube Wiring
Wiring that usually predates 1950, knob and tube wiring is considered unsafe and high risk. Homes that have been renovated may have a more modern type of wiring tied into the knob and tube.
Other issues with knob and tube is there often aren’t as many circuits as compared to modern homes, and the circuits get overtaxed, and some home owners have been caught upping fuse sizes to accommodate the demand of electronics, but doesn’t consider the capabilities of the wiring.

Oil Tanks and Appliances
Oil tanks are at the mercy of insurance agents and fuel suppliers. The tank is the responsibility of the home owner, and is expected to be inspected by a licensed oil technician. This inspection is usually valid for 10 years. However, both the fuel company and insurance company could demand a new inspection during the 10 years.
Insurance companies may also require a tank to be replaced when a house changes hands – just because the previous home owner had insurance, it doesn’t mean that you will automatically be insured.

Water Piping
Another area of concern for insurance companies is galvanized piping. This is again usually older piping, that overtime has had a lot of sediment build up. This reduces the water’s ability to flow threw the pipes to fixtures. There is also the concern of corrosion, which if not caught early can result in water damage claims from leaks.

When it comes to insurance coverage, remember that the required repairs may be costly, but it could save you in future claims, frustrations, inconveniences, and rate hikes. Also be sure to check that your house is properly covered for all of your needs, so you don’t get caught without coverage.

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