Buying a home - previous insurance claims (contingency, disclosure, agent)

[RubyRedDiamond]

I have purchased homes and have never come across this situation. When I called my insurance company to get a quote on the home I have a contract on, they had two claims on record. One was paid and closed and I knew about the situation.

The claim I am concerned about occurred about 3 years ago (the house is 7 years old) for mold. The status of that claim is still open and nothing was ever paid on it. I realize this could mean anything, but I am still concerned. I have my inspections scheduled in a a couple of weeks.

The seller did not put anything on the disclosure but now I need to see if they even owned the house then. What should I look for (because there was nothing obvious) and how do I make sure my inspector looks for all the right things?

[MikePRU]

You might want to hire a mold inspection company. They can do air quality tests and surface swabs which will detect mold.

Personally, I would start by asking the seller for an explanation.

[rrah]

I also hope you have an insurance contingency in your contract. What did your insurance agent say about getting homeowner's insurance on the property? Homes with mold claims can be very difficult and very expensive to insure.

[cully]

Yes, ask the seller. Or your realtor ask his. And also check further.

Some areas have their tax records (chain of ownership) online. Or at least where the realtors can get them easily.

If not, look for yourself. It's only 7 years old.

Are you getting a loan? I wonder what the lender will say?

I'm surprised the inspections won't be for a couple of weeks.

[RubyRedDiamond]

Thanks everyone. The claim is still open, so nothing was ever paid out. The insurance company had no issues with providing a policy but definitely recommended we have our inspector check it out. The inspections are later because of another reason, which is irrelevant to this situation.

The seller did not own the house at the time of the claim so they won't know anything/or claim not to know anything. We are going back in a few days and will definitely be looking very closely, especially in the crawl space. I have been looking at houses for a while and could smell mold in one or two (one guy actually tried to hide it with an air freshener), but this house did not have any smell (I know that doesn't guarantee anything).

I am thinking of getting a mold specialist even before any other inspections are done.

This house is really high end and in excellent shape...still I know that's no guarantee.

[MikePRU]

Originally Posted by RubyRedDiamond

The seller did not own the house at the time of the claim so they won't know anything/or claim not to know anything. We are going back in a few days and will definitely be looking very closely, especially in the crawl space. I have been looking at houses for a while and could smell mold in one or two (one guy actually tried to hide it with an air freshener), but this house did not have any smell (I know that doesn't guarantee anything).

Luckily for me (and my clients) I'm a bit of a walking mold detector. I have a mold allergy and usually have some sort of reaction even at pretty low mold levels.

The majority of people usually notice a mold odor though.

Originally Posted by RubyRedDiamond

I am thinking of getting a mold specialist even before any other inspections are done.

They're usually not too expensive. Doing an air quality test will give you a general idea of what the mold levels are like in the house, but in order to do the swab tests you'll need to be able to be able to physically swab the suspected area which is not always possible. Sometimes mold can be inside walls.

[RubyRedDiamond]

My realtor has a reaction to mold too! She did not have any in this house. Honestly, I am willing to pay whatever a mold inspection costs. Thanks for the info on that.

I think my course of action will be to inspect ourselves and then order a mold inspection no matter what. If mold is suspected or visible we can have the swab tests done, if possible.

[SunBeachFun]

Originally Posted by MikePRU

The majority of people usually notice a mold odor though.

What does it smell like? Is it just a musty basement smell?

[MikePRU]

Originally Posted by SunBeachFun

What does it smell like? Is it just a musty basement smell?

It's sort of musty smelling. Sometimes if I disturb mold by poking at it with my finger I get kind of a mushroom-y smell.

[SmartMoney]

I can tell you it's expensive to fix. I have buyers that are spending $8,000 on mold remediation on their present home so that they can close on their new home.

I did not know you could put an insurance claim in for mold.