There are some home insurance issues that could impact the transaction process for a buyer or seller. If there are, what can you do to alleviate them? Home insurance companies have tightened their underwriting criteria and they're reluctant to take on risks that may not have bothered them in the past. What's at stake for a buyer is not just the insurance, but mortgage financing as well. Banks won't approve a home loan unless there is proof of insurance.
A number of home insurance issues have been identified that can impact the transaction process. These issues can include;

• aluminum wiring-insurance company may insist on a complete electrical inspection by a certified electrician
• 60 amp electrical service-not deemed to be sufficient regardless of the size of the dwelling
• knob and tube wiring
• gas furnaces more than 20 years old
• oil tanks
• wood burning appliances- WETT certification is being measured against current building codes
• first time buyers without prior home insurance history
• insurability point system now used by insurers which may be detrimental to first time buyers.

If you are buying a home and before you remove your conditions, check with your insurance company!

Source: The Canadian Real Estate Association