Get this.
When we visited our lawyer to finalise our mortgage when we bought our 94-year-old house, we were told that we needed to get insurance before we took possession. Since we had a membership with AMA, we decided to go to them for house insurance.
They told us that we would need to upgrade our electrical system within a month, or they would cancel our insurance. As a result, we spent over a thousand dollars in electrical upgrades.
We found out today that AMA has decided, after the electrical upgrades were made, that they will not be providing us with insurance. They claim that there is a problem with the foundation and that there is a flood risk (despite no evidence of flooding and our property being on an incline away from the house.
Normally, I would say don’t use AMA for home insurance, but someone suggested that could be considered libelous. So, I won’t go that far.
oh the joys of home ownership!! So what are you going to do now for insurance? Did you tell them that they were the ones that told you they would if you did the electical? I guess it’s always the matter of getting things in writing huh?
There are a lot of insurance companies to use. It’s privatised here. We are trying our auto insurers next.
I would consider that a little sketchy…I am with AMA too…if your electrical was knob and tube then that is standard practice with insurance here in the west but if it wasn’t I think I’d throw a lawyer at them and see what they do. The interesting thing about AMA insurance…if you hit another AMA member or vice versa, they will not work on your behalf they will contract out to a third party AND may charge you for it! We have been trying to get out of AMA for a while but are waiting to see if we get transferred first.
K.
It wasn’t the wiring that we had to upgrade; it was the amperage. Although, we do have knob and tube wiring.
I used to inspect homes for an insurance agency. I highly recommend changing from knob-and-tube wiring to a more modern and less fire-prone system if you can, not just for insurance but for your own safety.
It’s on our long list of things to change.
Yep, knob and tube AUTOMATICALLY gets you disqualified for home insurance here in the west.
K.
It’s not what disqualified us.
Kim,
My husband who is an engineer was just reading over my shoulder and he told me to write this to you “Kim, fire your electrician…seriously though, if you have upgraded your amperage with knob and tube wiring the old wiring likely cannot handle the current. When that happens it heats up causing fires…so, the first really hot day you have with your upgraded amperage will likely start a fire. In the winter you will likely be ok as the cold tends to dissipate the heat coming off the wiring (it offsets it). So once it warms up it is a higher risk for fire because you don’t have that cooling off of the wiring due to cold drafts etc. I would highly suggest you have another more qualified electrician come in and inspect your house immediately.” If you would like to contact him through me, feel free to email…I included my email when I signed in.
K.
ok now I want to cry…how much is that going to cost? :( :( :( yes we will do that, talk to your husband and get an electrician to come in. sigh. another one.
Sounds like a puzzle to me. Thinking of you guys and hope you find a safe and reasonably priced solution.
I believe we went with All State Insurance (that or State Farm, as I’m constantly confusing the two – don’t ask me why) on our home.
Sorry Mary…I didn’t mean to be alarming, but rarely does my husband want to chime in on any of my “online stuff”…LOL…I would first start with a new electrician and go from there. Feel free to email anytime. I hope things turn out ok (we almost bought a house built in 1905 last summer and after $600 of contractors and inspectors, they told us the house would eventually fall in on itself (thank goodness we didn’t buy it)…even though you couldn’t tell from looking at it…my point is at least you knew about it and can take action!)
HUGZZZZ, K.
K.
Kris
Oh don’t apologise, at least SOMEONE is telling us, something no one else, like the electrician or the insurance company bothered to say. And then if our house DID burn down they would probably blame us (happened to some friends of ours). We will email you. Thanks VERY much!
Nikki, thanks :) Well we may end up going for Wawanesa, they are our car insurance company.
Mary, we are with Wawanesa for our vehicles as well and All State (for sure) came in cheaper…
So you guys are in this house now, correct? Everythings finalized or you still have to have the insurance in place to take occupancy?
Oh ok…hmmm, well we are going with the insurance company who did our car insurance and I imagine they will help us find the best deal.
Yep we are in the house, got possession mid January. Technically AMA hasn’t canceled our insurance yet, but once they do we will have to get new insurance asap. From what I heard you have 14 days from when you recieve the letter. SO it isn’t like we aren’t covered for that period of time. It just burns me, their attitude, but from the soundss of it, I am glad it worked out this way in a way. You know I had a feeling we should look elsewhere…hmmm, convenience of location shouldn’t be the biggest draw…I just like things to be in walking distance, lol.
We have our house insurance with GEICO (to go with our auto insurance)and it was very competitive in price.
Wish you luck.
For the record, our electrician has informed us that there is no safety risk with the knob and tube wiring, particularly since the wiring is still connected to the old panel box, which in turn is connected to the 100 amperage through the new panel box.
The city’s electrical inspector has confirmed the safety risk assessment.
Both have stated that many old houses in Lethbridge have upgraded amperage without any occurrence of fire or other ill effects.
Kris
Thanks for helping us look into this (to you and your husband). As Kim said, we found out it isn’t a risk at this time, but we will have to upgrade the wiring, and we were told that improper modifications to knob and tube wiring are a huge risk to safety.
I completely agree with seeking out a home that is within walking distance to ammenities…we did that also, and I adore it!
As an update, we decided to go with our auto insurance provider. What a completely opposite experience.
For anyone in southern Alberta who wants hassle-free home insurance, see Mark Zemp at Ridgeview Insurance in Raymond.
We’ve had the same problem with our insurance company. We recently had a huge flood and we were insured fully for it. Now they are playing the ‘rulebook’ and saying bc of certain contingencies that they won’t be paying. Absurd!
As a further update, when we renovated our basement last year, we upgraded all our wiring.
Telling people not to use a certain company is not libelous. It’s just your opinion. Saying stuff that damages the company that is untrue could be considered libelous.
Ummm… Comment #23 is not me.
23 was probably an Authority loophole bad guy. If they post a comment and use your name exactly, any link you may have earned gos to them.
That is not how it was taught. it is taught leave a good message(s) or comment and you may be rewarded. ekn
as for Knob and tube. i am an insurnace agent and still have some in my house. few old homes ever get it all out. My electrician and inspector said there is nothing inherently wrong with it. just do not plug in two hair dryers in the same socket.
ken