Would you buy a house with Aluminum Wiring ?

[COSMIC5]

<<<is a BROKER btw

When you get an electrician, make sure he is reputable and has the papers to do the inspection and can give you certification or something like that. Ask your broker what you may need and the broker may even have someone they have used before to get the right certifications.
The insurance company will do what it can to pay as little as it can LOL. The evaluation of your property will really only happen if a tragedy occurs.
The contents of your home, and proof of them, is your responsibility. A friend who is in the insurance business tells me that the first thing they try to do is buy you off with cash. For instance, in case of smoke damage, they will offer you perhaps 5 grand. In fact, when you get a restorer and then take all your clothes to a dry cleaner to get rid of the smoke, 5 grand does not take you very far but, at the time, it sounds good and you may even think you are gonna get some cash in your pocket.
How much to re-build your house? The problem with that is where the house is. The property may be more value than the "house" price. The loss to you will be the structure of the house and the contents. The value of the property will still be there, even if the house is not.
A broker will be able to answer all your questions with facts and proper information. She/he knows your area and the values of things in that area.The Broker works for you, not the insurance companies. You are his client, not the companies.
If you PM COSMIC5, she will be able to help you pick a broker. She should have a list of reputable ones in your are. She may even be in your area.

[Pete_Coach]

<<<is a BROKER btw

I know you are a broker and I believe I mentioned that you were a broker, several times.
I think I also mentioned you as the person to ask, the person to PM etc.
I just did not know if you can sell in only your area or if you can sell to or have customers all over.
Did I do or say something wrong?

[ABitOfUltraviolence]

Nothing wrong with aluminum wiring. Just hire a Master electrician, have him pull a permit through the ESA and have the house re wired if you're concerned.

[Pete_Coach]

Nothing wrong with aluminum wiring. Just hire a Master electrician, have him pull a permit through the ESA and have the house re wired if you're concerned.

Right, as easy as that Eh?

[octapuss]

Well im still in a bit of a pickle. it has turned from the aluminum to insurances questions.

Ill ask it here, and maybe another forum. Feel free to chime in.

Would you insure your house with a insurance company that gave you a fixed limit on the replacement value of your house. For example, the insurance CO. will give you 400 000 replacement value for your house. But not a penny more.

versus

most insurance co. give you 350 000 replacement value plus 100 % replacement value. (it seems to me a bit stupid that they put a fixed value on a house, but still give you that 100% garuntee they will fix it for more if it takes that.) ((Why do that?))

Is it a huge risk if i except the fixed amount? What are the cons that im not thinking about? My house could be fixed for that amount. It is 1700 square feet. Most contractors i have talk to it is more than enough to replace the material to build. Even the contents, as we dont own expensive things.

Feel free to chime in. What am i missing here. The insurance game is just that. A game. And Aluminum wiring is the tipping point.

thanks!!

[octapuss]

When insurance companies put a fixed replacement value on a house do they take in the cost of inflation?

[Genia11]

After going through an inspection from ESA, our insurer has agreed to insure our house. No restriction was placed on the replacement value, other than a voluntary one (if you want to reduce the premium paid and of you feel that you are being over insured).

We are with RBC Insurance.

Hope that helps.

[Pete_Coach]

Well im still in a bit of a pickle. it has turned from the aluminum to insurances questions.

Ill ask it here, and maybe another forum. Feel free to chime in.

Would you insure your house with a insurance company that gave you a fixed limit on the replacement value of your house. For example, the insurance CO. will give you 400 000 replacement value for your house. But not a penny more.

versus

most insurance co. give you 350 000 replacement value plus 100 % replacement value. (it seems to me a bit stupid that they put a fixed value on a house, but still give you that 100% garuntee they will fix it for more if it takes that.) ((Why do that?))

Is it a huge risk if i except the fixed amount? What are the cons that im not thinking about? My house could be fixed for that amount. It is 1700 square feet. Most contractors i have talk to it is more than enough to replace the material to build. Even the contents, as we dont own expensive things.

Feel free to chime in. What am i missing here. The insurance game is just that. A game. And Aluminum wiring is the tipping point.

thanks!!

As I said before, you REALLY need to sit down with a broker and get all your questions properly answered. This clearly is an issue for you and the only way to calm your nerves or allay your fears is to speak with a professional insurance person. Not an sales rep or company agent but a broker who will work for you.

[licenced]

Well im still in a bit of a pickle. it has turned from the aluminum to insurances questions.

Ill ask it here, and maybe another forum. Feel free to chime in.

Would you insure your house with a insurance company that gave you a fixed limit on the replacement value of your house. For example, the insurance CO. will give you 400 000 replacement value for your house. But not a penny more.

No. But that's just me. I'd rather err on the side of prevention and coverage and spend the money for the peace of mind for both than not.

The reality is that whether or not some homowners or even inspection companies consider aluminum or even knob and tube wiring to be safe insurance companies do not. Surprisingly this only happens once a property changes hands. For peace of mind get the fix. *You might want to ask the insurance co. or broker to be explicit as to any exclusions for such wiring bearing in mind that should any fire damage result they will launch a defense on the basis of ineffective wiring and insurance companies are very difficult to beat when it comes to claims. Ask also what the difference in premium would be if the wiring was updated.*

An aside. I acquired a client who was nearing the end of their lease at a very expensive home in High Park and looking to move. One day I received a panicked phone call that smoke and an acrid smell was coming from the basement's fridge outlet. So after deducing the panel was a fuse box and the wiring was aluminium I instructed them to shut it off and immediately contact the fire department. They arrived within minutes. The FD said they were fortunate to be at home because the wiring was old, decayed and very flammable. The ESA visited a couple days later and issued an order to replace it all.

Edited to add to * funny thing is that these homes with aluminium and knob and tube are already insured but when requesting the existing insurer to maintain coverage on resale they balk and require changes.

[woof]

........ funny thing is that these homes with aluminium and knob and tube are already insured but when requesting the existing insurer to maintain coverage on resale they balk and require changes.

I think that with an ongoing policy you're simply dealing with a computer which annually bumps up your premium and automatically spits out the renewal notice. When a house is changing hands however this suddenly gets scrutinized by human beings who look at the age of the house and suddenly begin to wonder about the wiring and other things which have come up over the years as potential risks. Perhaps there's a checklist they run through.