Question : Will an insurance company insure our home if there is a unpermitted cottage?
I'm in the process of buying a foreclosure home (Saratoga,CA, can't transfer the insurance since it has already lapsed) that has a detached unpermitted cottage (2 bedrooms, kitchen, bathroom and living room total of 900 sq ft), the main home also has a unpermitted converted garage that is used as a in law quarter (separate entrance and full bathroom), it also has a unpermitted sun room too. I really love the home and tried looking for home insurance but it looks like no one will insure me. Is there anyway I can get insured for this property without having to lie about these unpermitted additions to the insurance company? Any advice would be appreciated and any suggestions which insurance company would insure me for a reasonable price. Thank you in advance.
- asked by Happy
All Answers:
Answer #1
first did you know that the the property hadunpermitted additions when YOU STARTED THE PROSESSOF buying itIF NOT YOU NEED TO SEE A LAWYER.if youare buying a property with problems never payanything for the unpermitted part. Many time youcan even bargin down the value of the property.because of problems.also check with the buildingdepartment as to what it will take to bring toproperty in to legal status. in some areas it manybe easy as paying the building fees. and in othersyou may have to tear down unpermitted buildings.PS GET EVERY THING FROM THE BUILDING DEPARTMENT INWRITING.If the bank did not disclose the defectwhen they put it up for foreclosure sale. i hopeyou got title insurance.if that is the case see alawyer
- answered by EMT-B
Answer #2
I think you should go to the local buildingdepartment (city or county) and apply for as builtpermits for these unpermitted structures. Although costly, it's better than Code Enforcementcoming by, realizing that thoseadditions/properties are unpermitted and going tocourt, seeking an injunction to have you (1)obtain as-built permits or (2) having them torndown.It is more expensive to have Code Enforcementcome in and seek relief from the courts (assumingyou don't comply and apply for as built permits)because you may have to pay their attorneys' feeswhen they win.I believe you apply for as builtpermits from the Building Department in the city. Make sure you're in the incorporated portion ofthe city, otherwise you'll have to go to theCounty Building Department.Also, if the bankdidn't know that these additions were unpermitted,you wouldn't have an recourse. Most foreclosuresare sold as is and requires buyer's diligence. Atitle insurance policy may or may not discloseunpermitted additions (depends on the wording ofthe policy). As I recall, a title insurancepolicy only guarantees that you have marketabletitle to the property.
- answered by Star
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measure and fulfill your financial needs
