Is Aluminum Wiring Keeping Your Client From Getting Insurance Coverage?

Home inspections often turn up surprising results. Even insurance inspections, like Four Point inspections, often turn up surprises that home buyers and even owners are unaware of. When a home reaches 25 to 30 years old, or 10 years for a manufactured home, it will be required to have a Four Point inspection done to obtain or renew insurance coverage. The electrical service panel is one of the areas of the home that is included in this inspection.

Asidefrom double-taps (two wires under one screw), aluminum wiring is one of the most common electrical panel surprises. There are two basic types, single-strand solid aluminum wiring and multi-brand aluminum branch wiring.

Single-strand aluminum wiring is considered a hazard by nearly all insurance companies and can prohibit your client from obtaining property insurance. It is considered a hazard because aluminum is a very poor conductor of electricity compared to the standard copper wiring. This means that the wires have to be much thicker to handle the same amount of current. The connections between wires are prone to overheating due to becoming brittle and have been known to cause fires.

One of the primary methods of remediating single-strand aluminum wiring is installing COPALUM crimp connectors. COPALUM connectors would need to be installed at every junction box in the home and are “crimped” over any aluminum wire connections. The average home has around 100 junctions, and COPALUM connectors range from $32 to $65 installed per junction box. In order to obtain or renew insurance for these homes, documentation of these repairs will need to be provided to the insurance company. A similar product, Alumiconn, has been used for many years to remediate single-strand aluminum wiring, but is rapidly losing favor with many insurance companies and may not be considered a complete remediation.

The other primary method of remediating single-strand aluminum is rewiring the entire home with copper wire. Some homes are still entirely wired with aluminum, while others only have single-strand aluminum wire to some outlets or switches. This makes it hard to know exactly how much to budget to have the wiring replaced. Our clients have told us that the estimates they have received have been in the neighborhood of $6,000 to $8,000 for completely re-wiring their homes with copper wire.

The other type of aluminum wire is multi-strand aluminum branch wiring. This type of wiring is still used today for incoming service lines and/or dedicated to a major appliance, like a stove or air conditioner. Approximately 80% of the homes that we inspect have this wiring present.

According to our e-mail correspondence with Sandra Starnes, Director for the Florida Office of Insurance Regulation, individual insurance companies have the right to choose whether or not they will provide coverage on homes with this type of wiring. After speaking with several insurance agents, the list of carriers that will cover this type of wiring is very short.

For many owners or buyers of these homes, Citizen’s is often the only option for guaranteed insurance coverage. Even then, getting the policy written can be a major hassle for the client and their insurance agent. We have gotten several calls from clients who have stated that Citizen’s would not cover their multi-strand aluminum branch wiring. Citizen’s issued an agent informational e-mail on March 26, 2011 in reference to this issue that states: “Homes with aluminum main service wires and heavier 240 volt circuits that feed major appliances (e.g., dryers, ranges, air conditioners) are eligible for coverage with Citizens.” Many agents within Citizen’s are still unclear about the differences between different types of aluminum wiring.

Should you or your client have difficulty obtaining insurance coverage over this issue, please call us at (941) 749-1152 and we will be happy to assist you in clarifying the issue.

Click here to find out what the International Association of Certified Home Inspectors (InterNACHI) has to say about aluminum wiring.

What is a Four Point Inspection and Do I Need It?

Manatee Home Inspection Services, LLC inspects hundreds of homes every year for various reasons. The most common inspections are for real estate transactions and/or insurance. Four Point Inspections are the most common insurance inspection that we do for our clients, particularly since homes that are 25 to 30 years or older, or manufactured homes 10 years or older, are required to have one done to obtain or renew property insurance coverage.

A Four Point Inspection form provides the insurance company with a fairly accurate assessment of the home’s risk of damage due to a failure of one of its major systems. NEVER provide the insurance company with a copy of the full inspection report where your inspector was looking for defects that would affect the real estate transaction. Most of the defects we find are minor, however insurance companies have been known to make a mountain out of a mole hill over these minor defects, causing major headaches for home buyers.

The four major systems covered by a Four Point Inspection are:

·         Electrical Panel – includes the age, service amperage, wire type(s), brand name, and any hazards of the electrical service panel

Common Defects: Double-taps (twowires under one screw), aluminum wiring (single or multi-strand) and hazardous electrical panel brands (like Stab-Lok). Any of these defects will affect insurance coverage and/or availability.

·         HVAC – includes the age, type, portability, and functionality of the home’s heating and air conditioning equipment, including stoves and fireplaces.

Common Defects: Central heating system does not work and heat is supplied by space heaters. Homes in Florida must have a permanently-installed heat source in order to obtain insurance coverage. The very presence of portable space heaters, even with a working permanently installed heat system, could affect the insurability of the home.

·         Plumbing – includes the age, piping material, functionality, and presence of leaks for the home’s plumbing system, including the water heater.

Common Defects: While all leaks are a concern, leaks from the water supply lines and/or water heater are the most common defect that will affect the insurability of the home.

·         Roof – includes the age, remaining useful life, material(s), and condition of the home’s roof system, including any signs of leaks or damage.

Common Defects: If the roof is within less than 3 to 5 years of the end of its useful life, or has defects such as heavy granule loss, missing/lifted/curling shingles, missing tiles, severe corrosion (metal roofs) or visible sagging in the roof deck, the insurance company will likely require that a new roof be installed in order to obtain or renew insurance coverage.

While your inspector will be reporting on all of the above mentioned systems, it is important to note that a Four Point Inspection is much less comprehensive than and is not a replacement for a full home inspection. A Four Point Inspection, depending on the age and condition of the home, could take as little as 15 minutes to complete. An average full home inspection takes around 1 to 2 hours, even when the home is in good condition. It is also important to note that a Four Point Inspection does not cover any defects in the structure of the home itself, which could cause major issues for a home buyer if these defects are not found like they would be during a full inspection.

The only exception to the previously mentioned age rules for a Four Point Inspection requirement is for clients who have property insurance coverage with or are seeking coverage with State Farm Insurance. Recent company policy changes include a much more comprehensive Four Point Inspection form than what other insurers require (most companies want the Citizen’s form), and requiring this form for all homes that are 6 months old or older.

The new form that State Farm requires is closer to a full inspection than it is to the traditionally accepted Four Point form, including information about the home’s appliances, pool, detached structures, energy sources, and overall condition. While it is still not a replacement for a full inspection, the State Farm Four Point form is much more comprehensive. It is also important to note that State Farm Insurance agencies cannot write State Farm policies within 2 miles of any coastline. In these cases, the Citizens’ Four Point form is still acceptable.

For more information about Four Point Inspections, or to schedule your Four Point Inspection for only $75 (discounted to $50 when done with a full inspection), please call our office at (941) 749-1152.

Now Included with Every Full Inspection!

There is a lot more to referring a home inspector than just the report. These value-added services are now included with EVERY Full Inspection to help you sell more homes!

FREE Appliance Recall Check with Lifetime Recall E-mail Alerts. 

In addition to the RecallChek report, your clients will also receive a monthly e-mail alerting them of any new recalls - with YOUR (their agent's) contact information at the top of every e-mail!

Your clients will also receive one phone call approximately 25-30 days after the inspection from a security system representative to notify them of the home security system discounts they are eligible for as part of the RecallChek & RecallTrak program.

FREE 90-day Limited Home Warranty

Also included with every full inspection is a FREE 90-day limited home warranty. This warranty is designed to work in conjunction with any home warranty already offered.

For example: If a stove breaks that is covered by both warranties, they would call their primary warranty first to have the item repaired or replaced. If your warranty charges a $100 deductible for the claim, they would then be able to place a claim with Residential Warranty Services, our partner, and be reiumbursed their deductible from the other warranty!

Please feel free to call us at (941) 749-1152 or e-mail us with any questions you may have.

What You Need To Know: How To Keep Wildlife Out of Your Home

By Jenni Boucher

Most people come to Florida for our beautiful beaches and tropical climate. Our entire state is a tourist destination for travelers from around the country and around the world. With all of the focus on theme parks, beaches and tourism, we often forget how close we really are to nature – until it invites itself in!

Interactions with wildlife are not uncommon for most residents, but the scenario takes a completely different turn when the interaction is inside your home. Opossums, raccoons, rats, mice, squirrels, and snakes are just some of the species routinely trapped inside Florida homes. Can you imagine going to the refrigerator in the middle of the night for a drink and being greeted by this guy?

Prevention is the best method for keeping wildlife out of your home. Don’t assume that there aren’t ways for pests to get into your home, even if you have a brand new home. Why? The Florida Building Code has tons of provisions for protecting your home from termites and other wood-destroying organisms, but very little mention of proofing for other pests. Nearly all homes have at least one access point where wildlife can enter, such as: broken or missing covers for roof vents, soffits, crawlspace accesses, or dryer vents. These holes/gaps don’t have to be large – animals can enter through holes the size of a quarter. There doesn’t even need to be an existing access – many animals can chew their own!

Once any access points have been discovered, make sure that they are closed-off immediately to keep animals out. Trim any tree branches that animals could be using for travel in and out of your home, and remove any landscaping that is within 12” of the walls of the structure. Make efforts to clean-up any vegetation, wood piles or rubbish in the yard that could provide cover for any animals already near your home. Make sure that all of your outdoor garbage cans have tight-fitting lids – animals love our leftovers! Raccoons especially love cat and dog food commonly left outside for neighborhood strays. Do not ever attempt to feed any wildlife, doing so removes their fear of humans and can make them attack humans in an attempt to get food.

What should you do if you suspect an animal is already in your home or soon-to-be-home? DO NOT TRY TO CATCH IT YOURSELF!

Most species of Florida wildlife can be vicious, especially when backed into a corner and/or protecting young, and come equipped with razor-sharp teeth and claws. In addition to the high likelihood of a hospital visit to treat the wounds they inflict, these animals often carry a host of parasites and diseases – like fleas, ticks, several worm species and rabies. 

Your best bet would be to hire a Wildlife Removal Specialist. Vastly different from a regular pest control company, these specialists have the knowledge and tools necessary to trap and relocate wildlife. Find out how the specialist intends to solve your problem. Some companies use poisons to kill the animals, but this is not the most humane method of removal and dead animals can leave a nasty odor if they die in an inaccessible location, like inside a wall. Some companies will provide a free inspection and estimate to establish the scope of your problem and what the best method of removal will be.

Got wildlife in your home? Don’t try to fix the problem yourself – this is a job for professionals.

Is Your Home Ready to be SOLD?

By Jenni Boucher

Selling a home is exciting and stressful process. By putting your home on the market, you are opening up your home for examination and evaluation by potential buyers and their real estate agents. Make selling your home an easier and less stressful experience by having a seller’s home inspection before the house goes on the market.

Why have a seller’s home inspection done? The reasons are many!

For sellers, it can often be hard to notice or evaluate the severity of defects in a home that they have lived in for years. Potential buyers will be scrutinizing nearly every detail of the home to ensure that they are making a wise investment, possibly the largest investment they will ever make. Having the inspection done prior to having the house put on the market has numerous advantages, including:

• You can choose your own inspector rather than be at the mercy of the buyer’s inspector selection.
• Seller inspections are easier to schedule since you are not working under the time constraint of a 5-10 day inspection addendum, allowing the seller to schedule the inspection around their other obligations.
• The inspector will be able to alert the seller to any immediate concerns, such as major defects or signs of an active termite infestation.
• The seller can assist the inspector during the inspection and identify any recently repaired or replaced items, or areas of concern.
• Knowing what issues are present ahead of time gives the seller the ability to repair the defects or at least get realistic estimates of the repair costs to price the home accordingly. Repair estimates obtained by buyers are often over-inflated and can dramatically affect the final price of the home. Having the repairs done prior to putting the house on the market also helps the house to show better.
• The report provides a third-party unbiased opinion that often helps relieve the concerns and unfounded suspicions of potential buyers.
• A clean inspection report is a great marketing tool to set the home apart from other competing listings and can help justify a higher price.
• The report might encourage the buyer to waive the inspection contingency, and help lighten negotiations and 11-th hour re-negotiations.
• The deal is less likely to fall apart, like they often do, when the buyer’s inspection report unexpectedly reveals a last-minute problem.
• The report provides full-disclosure from future legal claims, and also helps establish credibility with the buyer that the seller is being up-front and honest in their dealings.

There are several advantages for the real estate agent as well:

• Sellers can schedule their inspection at their own convenience with the inspector of their choice with little involvement from the agent.
• The seller is able to accompany the inspector during the inspection, allowing the seller to see their home through the eyes of a critical third-party, thus making sellers more realistic about their asking price.
• The agent is alerted to any immediate safety concerns prior to the home being toured by other agents or potential buyers.
• Repairs made ahead of time help the home to show better and can justify a higher asking price.
• Reports available online will entice buyers to tour the home.
• Clean reports and reports with reasonable work estimates are both great marketing tools.
• Negotiations go smoother with fewer unexpected surprises, reducing the need for 11-th hour re-negotiations, and the deal is less likely to fall through due to an unexpected surprise.
• Reports provide full disclosure protection from future legal claims.

Having a sellers’ inspection done also benefits the buyer:

• The inspection is done already and was paid for by the seller.
• The report provides an impartial third-party opinion on the condition of the home that is useful prior to making an offer on the home.
• The problems are corrected, or at least acknowledged, prior to starting negotiations.
• Negotiations go smoother and unexpected surprise defects are virtually eliminated.
• The report could assist in acquiring financing.
• The seller inspection allows the buyer to sweeten the offer without increasing the offering price by waiving the inspection contingency.

Whether you are buying, selling, or listing a home, having a sellers’ inspection done prior to the home being put on the market carries numerous advantages for all parties involved – it is truly a win-win-win situation. 

Did You Buy A Haunted House?

By Jenni Boucher

If you’re on the search for your dream home, there are many important factors to consider when evaluating properties. Most buyers look at the overall condition of the home, character/appeal, the school district and when the last renovation was done. Wouldn't you also want to know if the house is haunted?

The state of Florida does not require sellers or their agents to disclose to potential buyers whether or not a house is haunted, even though 31 other states do. That being said, Florida does require sellers to disclose anything that could materially affect the value of the property, such as a death on the premises. Let’s face it: the presence of spirits isn't something that a home inspector is going to find out for you while inspecting the property.

The good news for sellers of haunted or rumored-to-be-haunted properties is that for a growing segment of buyers, it can actually increase the value of the home! These buyers feel that the spiritual presence adds to the character of the home. According to the National Association of Realtors, in some areas with a large number of reported haunted houses, like southern California, real estate firms are now creating teams of agents that specialize in haunted or otherwise stigmatized properties.

If you believe in the paranormal and the presence of activity would make or break the sale of a particular property to you, go ahead and ask the seller if they have noticed anything unusual. When asked point-blank, most sellers will divulge the history of their home. If not, it’s time to do some research yourself.

Google provides a wealth of information about haunted houses in any particular area, especially famous ones. If you find anything interesting, visit the local library to review old newspapers and see what turns up. You can also ask neighbors if they have noticed anything unusual about the home or if there are any local legends about the property.

There are things you can look out for while touring the home that could possibly indicate the presence of spiritual activity. Cold or hot spots, flashes of light, unexplained shadows, the feeling of being watched and/or touched and orbs of light in photographs are all potential signs of activity.

If you have already bought your dream home and suspect that you’re not alone, there are things you can do to bring peace of mind to you and your family – and possibly help the spirits move on.

Start with a deep cleaning of the home. This is a good first step to cleansing the space of negative energy. Wipe down walls, clean the floors, clean all linens – clean everything! Let the energies in your home know that only positive energy is allowed in your space and negative energies aren’t welcome.

There are precedents of homes being sold without disclosure of spiritual activity where the buyer has been able to get a refund of the purchase price through court proceedings. One of the most well known cases was in 1990 when Jeffrey Stambovsky purchased a turn-of-the-century Victorian home in Nyack, NY. The seller did not disclose any paranormal activity to Stambovsky, although it was brought up later in court that she had previously sold her story to Reader’s Digest and the local press (1977 & 1982). The lower court that first heard the case ruled that the seller and agent were not required to disclose spiritual activity in the home. A NY appellate court later ruled that the house was indeed haunted and granted Stambovsky a refund of his $650,000 purchase price. Don’t feel too bad for the seller, once word got out a whole new group of buyers become interested in, and ultimately purchased the property.

No matter what side of the real estate transaction you are on, it is important to be open and forthcoming about paranormal activity at a property. The buyer may not believe in spirits, or may be more intrigued by their presence. It is important to establish dialogue early; otherwise the buyer might be left wondering “Did I buy a haunted house?”

Citizens Insurance Policy Change for Manufactured Homes

By: Jenni Boucher

At a recent networking meeting at the Manatee Association of Realtors, I was discussing insurance changes with several of the realtors and we got on the topic of manufactured homes. None of them were aware of a recent change of insurance policies regarding these homes. I explained what I knew, and I was asked to provide this information to other professionals who need to know.

Manufactured homes are a favorite residence in Florida for retirees looking for low-maintenance living. In most cases in Manatee County, these homes are found in a manufactured home community that often includes multiple amenities to help them enjoy their new retirement lifestyle. In fact, there are currently 104 manufactured home communities in Manatee County alone! It varies by community, but the majority of these homes are 20 to 30 years old, if not older. There has been a recent change to the insurance qualifications for these homes that many homeowners, buyers and realtors are yet unaware of.

Citizens Property Insurance Corporation is a non-profit, tax-exempt government corporation founded to provide property insurance coverage to those who might otherwise not be able to find coverage. Citizens is often the only insurance option for older manufactured homes that many insurers deem too high risk to cover.

 

On August 1, 2013; Citizens changed their policy on WHEN a manufactured home will be required to obtain a Roof Certification or Four Point Inspection to get or maintain coverage. It used to be that these inspections were only required on manufactured homes that were 25 to 30 years old or older. According to an e-mail release from Citizens and corroboration with local insurance agents, these inspections will now be required for manufactured homes 10 years old or older to obtain or renew a property insurance policy on the home.

Depending on variables specific to the home and specific policy requirements, these homeowners may need a Roof Certification Inspection AND/OR a Four Point Inspection.

A Roof Certification Inspection takes a look at the age, shape, type of covering and overall condition of the roof. A Universal Roof Certification Inspection & Update Form is then completed by the inspector for the home owner or buyer to submit to their insurance company certifying whether or not the roof is in good condition and what, if any, defects are found.

A Four Point Inspection includes all of the roof information described above, but also includes inspection and certification that the plumbing, electrical, and HVAC (heating, ventilation and air conditioning) systems are in good working order and gives the insurance company an estimate of their remaining life.

Some insurers are also requiring a Wind Mitigation Inspection on some manufactured homes, especially those with roof-overs. Wind Mitigation Inspections typically do not yield many benefits on manufactured homes, especially since most do not have an attic access panel and the roof structure is a major component in wind mitigation benefits.

Providing any insurance company with a copy of the full inspection report is NOT a replacement for these inspections and is NOT ADVISED. In addition to informing the insurance company of every defect in the home, the information is not contained in the format that the company, especially Citizens, requires and cannot be accepted.

If you still have questions about this change or would like to discuss your home inspection needs, please call our office at (941) 749-1152 or sales@manateehomeinspection.com.