Why insurance can sink a deal
Lenders require home insurance to fund a mortgage. So an uninsurable home isn't just a premium problem. It can collapse the purchase. That makes insurability something to check early, not at closing.
The usual culprits
- Knob-and-tube wiring, many insurers won't cover active knob-and-tube; rewiring runs $10,000 to $25,000+.
- Federal Pacific / Zinsco panels, often flagged as failure-prone; some insurers require replacement.
- Poly-B plumbing, a growing number of insurers won't cover it or add surcharges.
- Buried or aging oil tanks, a leak is the owner's liability; cleanup can run $10,000 to well over $100,000, and many insurers decline.
- Roof near end-of-life, insurers often limit or decline coverage on older roofs regardless of appearance.
How to check before you buy
- Ask the listing for the age of the roof and furnace, the wiring type, and the plumbing.
- Send those specifics to your insurance broker for a quote on that house.
- Make insurability a condition of your offer where you can.
- Get a contractor quote for anything flagged. It's your negotiating number.
If you are not sure which details to send, the insurance pre-check walks through the factors Canadian insurers ask about and what tends to resolve each one. Wondering whether a specific issue is worth walking from, see is it a dealbreaker?