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7 things to watch out for when buying a home

Written by Posted On Wednesday, 19 September 2018 15:34

Buying a home is the most significant monetary investment you’ll make in your whole life, so it’s important that you choose wisely in order to protect that investment. To help streamline the process, here are 7 things to watch out for:

 

1. Old wiring

If the home in question was built before 1970, be sure to ask what kind of wiring was used. Copper is the standard today, but older homes often have aluminum or knob and tube wiring. Some insurance companies will refuse coverage for homes with older wiring, so be sure to clarify with your provider.

Knob and tube wiring often fuses, as opposed to a modern circuit breaker panel. In worst case scenarios, the insulation around knob and tube wiring can erode, exposing the bare wire and presenting a fire risk. Though knob and tube wiring is not inherently dangerous if properly maintained, most electricians recommend replacing with copper wire. This could add a significant amount to the overall cost of the home.

Aluminum wiring also enjoyed a period of popularity, but its wires are prone to expansion and contraction as they heat and cool. Junctions between aluminum wiring and copper switches and outlets can corrode, resulting in overheating and potential fire risk. Aluminum wiring can be safe if properly inspected and maintained, but it’s important to know ahead of time and make the necessary arrangements.

 

2. Old plumbing

Poly-B, galvanized steel  and Kitec are the ones to look out for here. Once again, copper is considered the gold-standard.

Kitec pipes are made from polyethylene with a thin layer of aluminum, and are not always able to withstand the heat coming directly from the hot water tank. They also can erode over time. The main concern with this system is the pipes’ tendency to burst rather than leak, resulting in significant water damage. Unfortunately, Kitec pipes don’t often give any warning signs that a burst is imminent, and there are few solutions other than replacement. If there’s a yellow sticker inside the electrical panel or if the brass fittings have one of the following stamps- Kitec, KTC, CSA B139.9/10, ATSM F1974- the home in question may be fitted with Kitec plumbing.

Poly-B (or polybutylene) is a grey plastic material that was used between 1978-98. Like Kitec, Poly-B doesn’t handle hot water or chemicals (like chlorine) very well, and often deteriorates from this inside out. This makes it hard to detect a problem before a leak or burst pipe occurs. Poly-B was also disproportionately vulnerable to accidental damage due to improper installation, leading to cracks, pinhole leaks, and eventual failure. Galvanized steel also corrodes and degrades from the inside, leaking or bursting without warning. And, you also have the potential for lead poisoning if the service inlet pipes haven’t been replaced from lead to copper.

 

3. Underground oil storage tanks

From the 1920’s-60’s, oil was commonly used for heating homes. It was stored in tanks that were buried underground. After the shift towards natural gas in the 60’s, bylaws required owners to decommission these tanks, and current bylaws require them to be removed. Responsibility for this rests with the current owner of the property.

Oil tanks can rust and erode over time, contaminating nearby soil and water. This can lead to a hefty bill to remove the tank at best, and a lawsuit at worst. If you (or the seller) are unsure whether the property has an underground oil storage tank, we recommend making your offer subject to an inspection that satisfies all the current legal requirements.

 

4. Old roofing

When buying a home, it’s important to remember that roofs have a shelf life. Most are designed to last between 15-30 years. Asphalt shingle, the most common roof type, usually lasts around 20 years. Past this point, there is an increased risk of leaking, sagging, and loss of shingles during windstorms. Check the attic to make sure there’s no sunlight or moisture coming in. You can also check the shingles themselves for curling, cracking or granular loss, as these are signs the roof will soon need to be replaced.

 

5. Flood areas

If you’re buying a home during the dry months, consider the risk for floods during winter and spring. The BC government lists areas of the province that are highly susceptible to flooding, and you can check your region here. Depending on the type of flood, your insurance provider may or may not cover you. For example, some providers have coverage for inland flood but may not provide coverage from flood due to a rising water table. If you live in an area with frequent floods, make sure you have the correct coverage with your home insurance  provider.

 

6. Grading of the property

When a home is constructed, builders excavate a hole slightly larger than the floorplan of the foundation. Once construction is complete, the leftover space is filled with soil. However, this soil is not as compact as the original soil and can settle over time, exposing parts of the foundation and causing water accumulation close to the home. This accumulated water could infiltrate the home, causing significant damage before you realize that it’s happening.

Consider the land around the property. Does it slope towards or away from the home? In heavy rainfall you may find that water draining towards the house can damage the foundation, resulting in significant repair costs.

 

7. Sub-standard repairs

Everyone likes to save a few bucks when they can, but certain tasks are worth leaving to professionals. For home improvement tasks relating to your electrical system, plumbing, heating or roof, we recommend you contact a professional. If the work was done by someone who was not qualified, you may be at significantly greater risk of suffering a loss.

 

Before you make an offer...

Before you make an offer, be sure to check for any parts of the home that don’t match up to the rest of the property in terms of quality and appearance. Also, keep an eye out for unusual sounds or smells, cheap materials, and random wires hanging from ceilings or walls. If the owner is hesitant to discuss renovations or can’t provide proof of a quality contractor (or even the name of the company they used), then additional research and inspection may be a good idea.

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Stefan Tirschler

Product + Underwriting Manager at www.squareoneinsurance.com

With over a decade of experience as a personal insurance underwriter and customer advocate, Stefan appreciates the changing needs of insurance customers, and how home insurance providers can help.

Holding one of the most sought-after designations in the industry, Stefan is a Fellow Chartered Insurance Professional who strives to inform consumers and professionals alike on the topic of home insurance. 

Square One Insurance Services specializes in a wide variety of home insurance products and services. Eliminating the complexities built into traditional policies, Square One makes it easy and convenient for people to personalize their insurance to meet their needs. 

https://www.squareoneinsurance.com/

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