Insurance

Question: I'm considering buying a house w/a garage conversion done w/o permit. will that disqualify it for insurance?

(Posted by: itsjunglepat on 2010-03-09 07:12:05)

Ok, I admit it, I have no home owner's insurance experience except with apartments. Is an inspection done on houses? As it turns out, the interior wasn't all that, so I'm not bidding on it.. only 1 bathroom vs 2 stated etc, .. but I still view this as a learning experience, & appreciate your answers.

Posted by: Henry on 2010-03-09, 07:14:56

You won't be able to buy the house until the city inspects the garage conversion and deems it legal.

Posted by: knowitall on 2010-03-09, 07:17:10

Your problem could come if the place burns down and the insurance will not pay to replace due to non-permitted wiring.

Posted by: mbrcatz on 2010-03-09, 12:34:46

Yes, inspection is done on houses. The fact that the house has a rental in the garage, or the fact that the conversion has no permit, will NOT affect the homeowners insurance.

Posted by: Gambit on 2010-03-10, 10:02:49

No having an illegal structure on your property will not disqualify you from purchasing insurance, however if the garage burns down and there are additional costs associated with rebuilding the garage so that it meets code, those additional costs will not be covered unless your policy includes what is known as "By-Laws " coverage (or something similarly worded).