Home Insurance Forum

May. 25, 2007

My father-in-law was told by his insurance company that since his home is now 35 years old, he needs to have it inspected and will have to remodel the plumbing and other items to bring the house up to current code. Can they require this?

Brian, Arizona

Dear Brian,

Insurers need to know that the homes they've insured are not hazards in themselves, which is where the requirement to bring electrical and plumbing systems up to date comes in. Many insurers will drop policyholders whose homes are falling down or in some disrepair, so it's probably best that your father-in-law comply. If he does not, he might lose his homeowners insurance and then be unable to obtain coverage from any other source, except one that will cost a great deal.

There are organizations, such as Habitat for Humanity, who can step in to help, if your father-in-law is physically or fiscally unable to do the work or have it done.

State Farm spokesperson Phil Supple says his company does not have a policy of requiring inspections on 35-year-old homes. However, State Farm will charge policyholders an extra 6 percent if they fail to upgrade utilities after 40 years. In some cases involving aging utilities, the company could cancel a policy. "If the risk proves to be too risky, we would decline to insure the property," Supple says.

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