Hail Damage and the "Insurance Claim Addendum"


As we are all well aware, we sometimes get some pretty bad storms here in Alberta that can cause serious damage.  This can lead to unforeseen issues in the purchase or sale of a home.  Let's look at some of the issues and how it can affect the sale of a property.


From the "who is responsible" side of things, it is fairly straightforward.  The owner of the property at the time of the storm is responsible to repair the damage (or, more likely the insurance company).  But, what happens if the house is for sale, you love the house and want to buy it?  Or, you have already purchased the home, but have not yet taken possession?  How do you ensure that the home is repaired by the current owner?  No, there isn't an "App for That", but there is a form for that!


It is called the "Residential Purchase Contract Insurance Claim Addendum"  This form can be used when you make the offer and it lists the property address, the purchase contract number, the date of the storm and a list of the damages.  It goes on to name the insurance company and policy number and gives a date as to when the damage will be repaired, either by the insurance company or the Seller.


If the repair date is after the possession date of the sale, the form sets out a "holdback" (money that is not transferred to the Seller until all the repairs are complete) and which lawyer will hold the money.  How much you ask?  Good question.  Your REALTOR® can request copies of the repair estimates and help with the negotiation of the dollar amount.


If you have already purchased the home, but have not yet taken possession, again, have your REALTOR® negotiate the dollar amount and get the form signed by the Seller.  Since the Seller (current owner at the time of the loss) is responsible to have the damage repaired anyway, he/she/they should be agreeable.


For more information, or if you would like a copy of this form, please give me a call at (403) 253-7326 or send me an e-mail.


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