Buying remodeled home can be hassle

Without permits, getting home insurance is difficult

Q: I'm currently in the process of buying a house. The home inspection revealed problems, and then it was discovered that many electrical and plumbing "improvements" were made without permits. The town refuses to issue permits retroactively, because most of the improvements were made by a previous owner and a plan of the actual improvements is not available. So, basically, there will be no official permit or approval of these projects from the town, so this is very bad for the purpose of homeowners insurance. Would you avoid buying this home? Basically, the house is uninsurable if I were honest and open with the insurance company … or I could not tell them there weren't any permits, and risk not having a loss being covered if it was due to failure of a system upgraded without permits. Any thoughts on this matter would be appreciated. --Steve M. A: First of all, I'm surprised that the local municipality won't work with you in this situation. It is in their best ...