Cast Iron Pipe Coverage

[Toni Romano]

Hi!

I have a client who fell in love with a home and put in a strong offer (with inspection contingency).

He is currently under contract, and the inspection notes Cast Iron Drain Pipes throughout (House was built 1957 Pompano Beach, FL). We had a plumber come out to inspect the inside of the pipes and his report stated the entire sewer system was in good condition and he inspected every single pipe and everything was in good condition.

Here's the kicker: My client was told by his insurance company that there is no insurance coverage for cast iron pipes, no matter what condition it is in. So, if he can't get water insurance coverage, he doesn't want to go through with the deal. That's understandable, because if one of those pipes were to burst next month he is out of pocket over $20k. 

My question is: How can my client get coverage? Is there some kind of loophole or something I'm not seeing?

Thanks!!

[Steve R.]

I would tell him to shop around a little for insurance. They all seem to have their own pet peeves. I have had my share of trouble with insurance companies and I have learned to just move to the next one if the current one has an issue with my property.   I was just notified that one of my properties was being dropped because it has asbestos siding. The siding and paint is in great shape. After inquiring into it, I was told that the company does not insure any property with any asbestos material at all. There are plenty of other insurance companies that don't have an issue with asbestos so I will just move over to one of them although at a slightly higher rate.