Congratulations on your new home! Securing insurance is a critical, often mandatory, step when purchasing a house, condo, or townhome. As your advisor, Stratis Insurance aims to simplify this process so you can focus on a smooth closing.
Insurance is essential for protecting your largest asset. This protection begins with an underwriting process: a detailed risk assessment that examines the structural and mechanical components, or the “bones,” of the property.
Understanding the Underwriting Assessment
Why do insurers care about the age of your plumbing or the material of your roof? Because the age and condition of a home’s critical systems directly correlate to the likelihood and severity of a claim. Newer, well-maintained systems generally pose less risk.
Stratis Insurance focuses on the key areas used to assess a home’s risk profile:
1. Structural and Mechanical Systems (High-Risk Indicators)
These items are scrutinized because their failure can lead to catastrophic damage (e.g., fire, major water loss):
- Piping Material: Systems like Polybutylene (Poly-B) plumbing are highly unfavourable to insurers due to their notorious tendency to rupture, leading to severe property damage.
- Electrical Wiring: Older systems, such as aluminum wiring, pose an increased risk of oxidation over time. This breakdown can compromise connections, significantly increasing the risk of fire hazards.
- Heat Source: The primary method of heating (e.g., forced air, oil, wood stove) and its maintenance history.
- Age of Hot Water Tank: An aging tank is a major source of potential water damage claims.
If a home has known high-risk components, an insurer may impose conditions on coverage or, in some cases, decline to offer coverage due to the elevated risk.
2. Protective and Maintenance Features
These features demonstrate proactive risk mitigation:
- Age and Material of the Roof: Critical for protecting against exterior weather damage.
- Alarm Systems: Both central-station monitoring and local alarms can positively affect a risk assessment.
- Strata Details (Condos/Townhomes): For shared-structure living, information about the Strata Corporation’s master policy and the presence of unit-level protection (e.g., sprinkler systems) is required to assess your unit correctly.
The Stratis Commitment: Tailored Protection
Stratis Insurance Advisors are committed to securing the proper protection for you. We recognize that while the home’s risks are important, the homeowner’s profile also plays a role in finding the right coverage.
We partner with a wide range of insurers, allowing us to curate the best plan by considering various factors, including:
- The specific bones of the home.
- The homeowner’s details, such as age and previous claims history.
- Financial details, like the existence of multiple mortgages or credit history.
- The intended use of the home (e.g., owner-occupied vs. rental property).
By collecting these important pieces of information upfront, we ensure you receive all available options and the proper protection you deserve.
Be Prepared: Your Home Fact Check
To ensure a smooth and quick closing, preparing this information before you apply for insurance is highly beneficial. Your home inspection is the perfect opportunity to confirm these details.
We encourage you to use our fact sheets as a guide during your home-buying journey:
Ready to secure your insurance and close quickly? Complete our quick online Home Questionnaire or Condo & Townhome Questionnaire.
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