Question by Happy: 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.
Best answer:
Answer by EMT-B
first did you know that the the property had unpermitted additions when YOU STARTED THE PROSESS OF buying it
IF NOT YOU NEED TO SEE A LAWYER.
if you are buying a property with problems never pay anything for the unpermitted part. Many time you can even bargin down the value of the property. because of problems.
also check with the building department as to what it will take to bring to property in to legal status. in some areas it many be easy as paying the building fees. and in others you may have to tear down unpermitted buildings.
PS GET EVERY THING FROM THE BUILDING DEPARTMENT IN WRITING.
If the bank did not disclose the defect when they put it up for foreclosure sale. i hope you got title insurance.
if that is the case see a lawyer
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