FSCO publishes consumer guides on homeowners’ insurance

Ontario’s insurance regulator has published a series of guides on homeowners’ insurance, including one which talks specifically about insurer concerns regarding older homes.The Financial Services Commission of Ontario (FSCO) notes that buyers of older homes need to be aware of issues around galvanized steel pipes which corrode over time presenting a leakage risk, as well as fire hazard risks from 60-amp electrical service or knob and tube wiring. Insurers are also concerned about poorly installed and/or cleaned wood-burning stoves as a fire hazard, and the potential leakage issue which results from fuel oil tanks.FSCO suggest buyers factor the cost of upgrades for these risky elements into their offering price and adds insurer representatives can point out what upgrades may be needed prior to coverage being provided. Some insurers will refuse coverage on older homes, specifically those more than 30 years old, if such upgrades are not made, FSCO notes.Other pamphlets in the series include tips on reducing homeowners’ premiums, how to take a home inventory and common homeowners’ policy exclusions.