Do investors use special insurance inspectors prior to closing?

[John D.]

Hi everyone!

I have a question about insurance inspectors. 

We recently had a case where we purchased a new SFR property and we had a clear CO from the local authority. We conducted a home inspection as part of our due diligence process, and the home inspectors turned up a few items that would need attention on the property, but nothing alarming and nothing that demanded an immediate renovation.

However, shortly after we insured the property, the insurer sent an inspector to the property who identified a variety of issues that they were not happy to insure us on without having these issues remediated and they issued a notice to cancel insurance. 

We are working through this as we speak, but my question is how do we address issues like this moving forward with new property acquisition?

How do other investors successfully identify issues with a property prior to closing, which insurance companies specifically, are likely to have a problem with?

Thanks!