While your thoughts drift to warm winter nights around the fireplace and fun filled Summers in the back yard, your buyers agent will be thinking of which legal clauses to include in your offer to purchase your new Mississauga home.
A lesser known clause of making the offer conditional upon obtaining home insurance is becoming more important these days.
Discarded and forgotten in the heady days of multiple offers this clause may again resurface.
An offer that is conditional upon obtaining home insurance allows to check with an insurance agent on whether you can secure insurance for your new Mississauga home.
A refusal by an insurance company to insure your new house will result in your financial institution not extending a mortgage on the closing day.
You should arrange for this clause to expire after the home inspection clause your buyers agent will have included in your offer to purchase.
This will allow you to discuss any problem areas with your insurance agent well in advance of the closing date when your insurance company may refuse to give you insurance coverage.
When arranging a home inspection consider doing a thermal home inspection that will reveal problems such as water and mould not visible to the naked eye.
Let's say your thermal home inspection reveals water seepage in the basement.
Your insurance agent will have access to statistics and facts that may reveal frequent water damage claims in the same area that your new Mississauga home is located.
The location of your new Mississauga house may mean you will continue to experience water damage problems even after repair.
This will certainly affect your insurance premium and possibly an outright refusal by the insurance company to insure your new home.
Water problems lead to possible mould problems.
Insurance companies do not like mould because it can prove difficult and costly to remedy.
Finding out about a mould problem and discussing it with your insurance agent could save you not only money but a great deal of headache later.
A thermal home inspection may reveal hot spots in the electrical wiring located in the walls of your new Mississauga home.
This could be a potential fire problem.
Insurance companies do not like fire hazards and could require a costly replacement expense before they will insure your new Mississauga home.
On the positive side if you find any homes for sale in Mississauga with an existing alarm system you will save money on your insurance premium.
The bottom line is, do not be afraid to include a conditional insurance clause in your offer and to show your thermal imaging home inspection to your insurance agent.
It may save you thousands of dollars and a lot of stress down the road.
Some of the following will increase your insurance premium or result in an outright refusal to insure your new Mississauga home: - Knob and Tube Wiring - 60 Amp Electrical Service - Aluminum wiring - Buried Oil Tanks - Old Oil Tanks - No Proximity to a Fire Station - Multiple Tenants - Vacant Home - Galvanized Plumbing