Insurance killed the deal ! Maybe not? - Posted by D.Henderson

Posted by Kellie on March 28, 1999 at 17:26:16:

I’m in Dallas and just bought a house in Irving- inspector revealed 3 layers of roof and assured us our ins. won’t cover it. The seller’s insurance, however, is coming out to look on Tuesday, so we are hoping they will. We are in an option period so we have a week more to back out if needed.

Insurance killed the deal ! Maybe not? - Posted by D.Henderson

Posted by D.Henderson on March 27, 1999 at 21:23:56:

Hello to everyone and thanks before hand.

Put an offer on a nice “grandma” house (I love these houses, the’re usually in great shape) 4/1 1/2/1, siding, good flooring, hookups, nice lawn, trees, bedrooms on the small size but great house. Daughter owns home but lives out of state, great right?
Send my insurance man over and he won’t write the house because of a new rule in Texas about muliple layers on the roof. No insurance no loan. Have already been approved, investor furnishes down, closing, etc.
Checked with other insurances in area, same thing
House comps 30-35k
owner now asking 29,500 I offer 24k.

Any hope?

Re: Insurance killed the deal ! Maybe not? - Posted by Bud Branstetter

Posted by Bud Branstetter on March 28, 1999 at 08:58:21:

Maybe it is a good idea that the insurance won’t work. With a purchase price of 24K and FMV of 30-35 there isn’t a lot of room for a standard redo and retail sale. Being a 4/1+1/2 would indicate it could be a cash cow rental or of greater value.

Unless it is a new rule I haven’t heard of it is probably the insurance company only. The insurance comissioner has ruled that the insurance companies MUST pay for taking off all layers and redoing the roof if there is a claim. Therefore the company only wants to insure ones that they won’t have to spend extra money on. There are several here in the Dallas area that will do existing roofs.

Re: Insurance killed the deal ! Maybe not? - Posted by Joe(IN)

Posted by Joe(IN) on March 28, 1999 at 24:38:21:

I don’t know if this will help, because I’m FAR from being an insurance expert,but here is my first thought. Find out what company/agent has the insurance now. Maybe they can cover it with no problem.

Also, you would certainly not be out of line asking the seller to reroof the house. Right now it is their problem. If you buy it you will most likely end up doing the roof.

My 2 cents