Homeowners Insurance Wont Insure New Home Purchase

3 years ago

Hi all,

We're newly under contract for a small, old fixer cottage. Yay! Here is the first issue (likely of many): It needs a new roof in order for any homeowners insurance provider to insure us, and thus, needs a new roof to close the deal.

However, we are planning on adding a second story to the home within 18 months, so we don't want to spend the money to add a new roof that will then get torn off when we add the second story. A few questions:

1) Can you repurpose a roof? i.e. If we replace the roof, can we pick up the newly replaced roof and use it on the second story of the house?

2) Does the entire roof have to be replaced if we add a second story, or just the pieces where the second story covers the first story?

Can anyone advise on what we should do? My train of thought right now is to just buy the cheapest roof possible to last us the next 18 months, then tear it off and start over when we add our second story (see ya later, $9K!)

Thanks in advance!

Featured Answer

cat_ky

3 years ago

You might also want to make sure that the foundation, and the house itself, will be able to handle a second story addition. Time to call in someone to find out, before you go any further.

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Comments (16)

armchairshopper
3 years ago
1) No, you cannot repurpose a roof.

2) Investigate whether you can get a larger loan that will enable you to do the add-on now.

Here’s an article on loans that allow home improvements.

https://www.bankrate.com/mortgages/mortgages-pay-home-renovations/
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They come look at it, and prolly photograph it. As soon as I bought my fixer upper, they appeared. LOL. But, I didn't have a problem at all getting insurance. The only stipulation was I put in a hand-rail on the back porch, because it had more than three steps to it. They did ask me all sorts of questions as to the entrance box, fire alarms, wiring. That didn't stop me from getting insurance, but it can affect the rates. As you make improvements, and let them know what you've done, the costs go down. Pick up a phone book and let your fingers do the walking. Some companies won't insure farms, some won't insure vacation homes. They all have their guidelines and not necessarily the same ones. Whatever you do, however, don't fudge answers. Be truthful. If you try to make it look better than it is, and you need to make claims, they may not cover it, and it could be considered fraudulent.
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deb s
3 years ago
If you are not experienced in home renovations step back and get an understanding of the real costs and implications of a second story - foundation as mentioned above, layout, construction costs, zoning (% coverage, height etc) its is usually far far less expensive to buy a house that is already at the sq ftg and layout you want
Lisi Lewis thanked deb s
armchairshopper
3 years ago
last modified: 3 years ago
Cat Ky is so right. When I was looking to move, I looked for bargain properties In great locations that I could fix up. One house had been remodeled, and the weight of the additional building materials overloaded the foundation. It was caving in from the weight.

It might be better to keep looking than to buy something that does not suit your needs as currently configured.
Lisi Lewis thanked armchairshopper
julieste
3 years ago
You might need to rethink. There may be a clause in your purchase agreement that allows you to back out if you can'e get insurance. Maybe.
Lisi Lewis thanked julieste
Izzy Mn
3 years ago
last modified: 3 years ago
Roof rafters are a very complicated thing. No, you can't reuse, most likely not to code. You will need a building permit to do that kind of work and lots of inspections. A old friend of mine, her husband did raise a roof, with a permit. When it came time for inspection before moving on to next phase the inspector said be couldn't have rafters he built himself, roof decking was on. Although they were done correctly they had to be "prefabricated" factory rafters, according to code. Was able to remove one at a time and replace with factory ones. (Yeah I don't get it either, neither did he) So, the story is, even if you know how and can there is a lot to it.
Lisi Lewis thanked Izzy Mn
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Patricia Colwell Consulting
3 years ago
IMO first find out if the house can actually handle a 2nd storey without being a completly rebuilt house . I agree you better check how you wrote up your offer. IMO this is a keep looking issue.
Lisi Lewis thanked Patricia Colwell Consulting
Lisi Lewis
Original Author
3 years ago
Thanks all! We have an inspector coming out to the house on Tuesday and even though the offer is written 'as is', we made sure to have a 'contingent upon inspection' clause so we can get out with our earnest money.
cat_ky
3 years ago
You need a different kind of inspector to see if the house will be able to have a second floor addition. Not the regular house inspector person. You need a structural engineer.
Andre Pintea
3 years ago
last modified: 3 years ago
That's a hard choice you have to make there and sadly it's pretty common. So many of those companies would take any precautions to be sure they have almost nothing old in the house that could give in so they'd have to pay.
Andreea
3 years ago
I completly agree with the comment above as it's the sad reality that we live in. I personally made a mistake a few years back with the first insurance that I got on my house and from that moment on, a moment that cost me a lot of money, I researched every single thing there was to research and I was also fortunate enough to be able to seek legal help from a friend that guided me through making my choices.
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BeverlyFLADeziner
2 years ago
Your Home Inspector is going to tell you if your dishwasher works, not if you can put another story on the house. You might be in over your head on this project if basic information like this is not part of your knowledge base.

Structural Engineer and you won't need him or her just once. They are going to have to review future plans for your remodeling. This is $$$$
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Patricia Colwell Consulting
last year
BS
functionthenlook
last year
Homeowners insurance companies are very selective what and who they insure since people started putting in claims on every little thing or due to their own neglect.

Is it possible to add the new roof and expand out instead of up.
Max Velin
last year
last modified: last year
Thank you for the information. I believe that every insurance policy should be approached wisely. You have to know what life insurance policies provide and insurance pyramid scheme to figure it out. I believe that cash value life insurance may be one of the missing links that your organization needs in order for your teams, your executives and your owners to reinvest their core efforts and get back to reaching new heights as a competitive and friendly organization.
sushipup2
last year
"Max Velin" is a known spammer.

Homeowners Insurance Wont Insure New Home Purchase

cat_ky

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armchairshopper

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