Thread: State Insurance Plan - First Home Survey in 7 years

I have my homeowners insurance through the Connecticut Fair Plan. This is for people who can't get homeowner's insurance anywhere else. Was cited for curling shingles last year and complied with repairs. Subsequently, they added an exclusion to the policy for water damage which I suspect was to reduce their liability. For the first time since I have had the policy (7 years) they want Mueller Services to do an Interior and Exterior survey. I suspect they will say I need a new roof. I can't afford to replace the roof and can't get a line of credit on the house. If the Connecticut Fair Plan cancels my policy because I need a new roof what are my options? Sell the house or is there another alternative? Who else would insure me? Thanks in advance for your comments.

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Originally Posted by Festus Haggen

I have my homeowners insurance through the Connecticut Fair Plan. This is for people who can't get homeowner's insurance anywhere else. Was cited for curling shingles last year and complied with repairs. Subsequently, they added an exclusion to the policy for water damage which I suspect was to reduce their liability. For the first time since I have had the policy (7 years) they want Mueller Services to do an Interior and Exterior survey. I suspect they will say I need a new roof. I can't afford to replace the roof and can't get a line of credit on the house. If the Connecticut Fair Plan cancels my policy because I need a new roof what are my options? Sell the house or is there another alternative? Who else would insure me? Thanks in advance for your comments.

How old is the roof?

A problem with selling the house is that if the roof is toast then it is doubtful that anyone would buy it with a bad roof.

Well it would appear that you are between a rock and hard place. Without insurance no mortgage.

You either have to go through with the interior/interior assessment then you will be in a better position as to your next move.

People buy houses all the time with bad roofs, but will likely want some form of price compensation.

If you think about the big picture, in reality you can't afford NOT to replace the roof. Excessive leakage through the attic can ruin what's left of your investment, while the cost of correcting such things as mold, rotted structural members, and water-soaked insulation can easily exceed the cost of a new roof. Time to get creative with respect to securing some financing.

I am not familiar the Connecticut Fair Plan, but many states have a system to insure properties. I do not think that the Fair Plan will drop you though they may increase the premium, increase the deductible or both. The plan is probably their for people like yourself, non insurable by other carriers. In Maryland it is Joint Insurance That is the carrier of last resort, where you have have been rejected for coverage by general companies.

A little surprised that it is first look in 7 years. Normally its every three. But Fair Plan sets their own requirements for inspections.

Originally Posted by Scott Patterson

How old is the roof?

A problem with selling the house is that if the roof is toast then it is doubtful that anyone would buy it with a bad roof.

Scott: Thank you for your response. I don't know how old the roof is. I bought the house in 1992 and the roof was on it when I bought it. I had K-203 rehab money at that time which I spent on other things like carpeting and wallpaper. In retrospect I didn't think the roof would give out in my lifetime, but it has deteriorated rapidly over the last 5 years due to some of the extreme weather we have had in the last few years. If I had to sell it, I would expect to have to deduct the cost of a new roof.

Originally Posted by Garry Sorrells

I am not familiar the Connecticut Fair Plan, but many states have a system to insure properties. I do not think that the Fair Plan will drop you though they may increase the premium, increase the deductible or both. The plan is probably their for people like yourself, non insurable by other carriers. In Maryland it is Joint Insurance That is the carrier of last resort, where you have have been rejected for coverage by general companies.

A little surprised that it is first look in 7 years. Normally its every three. But Fair Plan sets their own requirements for inspections.

Garry: Thanks for the response. That is comforting to know they might not drop me altogether, but only raise my premium. They have already reduced their liability and financial exposure with the "water" clause they included last year.

Typical shingles have a 17-20 yr life span. 1992-2012 is 20 years. The roof is at or past its expected useful life. Time for a new roof. Sounds like you will have to get a loan and replace the roof or the failing roof will lead to more expensive damage to the property.