Insuring an older home in Cambridge: wiring, plumbing, roofs and oil tanks

Cambridge has some beautiful older homes, from stone houses in Galt to century homes in Preston and Hespeler. They also come with questions insurers take seriously. If you are buying an older home, or your insurer has started asking about updates, here is what to expect.

What insurers ask about, and why

• Electrical. Knob-and-tube wiring, aluminum branch wiring, fuse panels and low-amperage service can raise fire risk. Many insurers will not cover knob-and-tube that is still live, or will ask for it to be replaced within a set time.
• Plumbing. Galvanized steel, lead and some older plastic pipes can fail and cause water damage. Insurers want to know the type and when it was last updated.
• Roof. An older roof is more likely to leak or fail in a storm. Know the year it was last replaced.
• Heating. The type of heating, its age and whether you have a wood stove. Wood-burning appliances usually need a WETT inspection.
• Oil tanks. Insurers often have rules about the age and location of oil tanks because leaks are expensive to clean up.

Before you buy

1. Ask the seller for the years the wiring, plumbing, roof and heating were last updated.
2. Get a home inspection and ask the inspector to note anything insurers may flag.
3. Call your broker before you waive conditions. Finding out a home is hard to insure after closing is stressful and expensive.

Which updates make the biggest difference

Replacing knob-and-tube wiring and upgrading an old fuse panel usually make the biggest difference to whether a home can be insured and at what price. In Ontario, electrical work should be done by a licensed electrical contractor and inspected by the Electrical Safety Authority. Keep the paperwork; insurers may ask for it.

If another insurer has said no

A decline from one company does not mean no one will insure your home. We work with standard and specialty insurers, and we regularly place older and hard-to-place homes. Sometimes coverage comes with conditions, like completing an electrical update within a set period.

Have the years of your last updates handy and call us at 519-623-7031. We will tell you what to expect before you commit.

Sources

• Electrical Safety Authority (Ontario)
• Wood Energy Technology Transfer (WETT)

This article is general information about insurance in Ontario and is not advice for your specific situation. Your coverage depends on your policy wording.