ask george & chuck
Nov. 30, 2009

Homeowners insurance, being pressured to buy
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: My son is in the process of buying a home, and his agent is pushing for closing in six days. However, my son just had the home inspected, and the inspector uncovered several problems. The agent amended the contract to require resolutions to only two of those problems, not all of them; also, my son will not be allowed to have the property inspected once the repairs are made.

My son and I are concerned about the way the agent is pushing for the sale. Is this legal? Can she force him to purchase the house without these problems being resolved?

Answer: No one can force you to purchase a house. Your son is accountable for the contract he signed, but so is the seller. It sounds like your son is not being represented adequately by his real estate agent. Did he sign a Residential Buyer/Tenant Representation Agreement? Your son should contact the broker affiliated with his agent and voice his concerns. If your son isn't satisfied with the answers he receives from the broker, he should contact the Texas Association of REALTORS® at 800/873-9155 and ask to speak with the Professional Standards Department. If that phone call doesn't yield a satisfactory resolution to his complaint, he can file a complaint with the Texas Real Estate Commission.

Dear George: I live in a house that was damaged significantly by Hurricane Ike, and the company that provides my homeowners insurance sent me a notice of non-renewal. Two other insurers have also turned down my request for coverage. I finally received a quote from another provider, but the monthly rate is triple my current one. What are my options?

Answer: You've been designated as a high risk by insurance companies. While this designation is likely the result of claims you filed after the hurricane, there are other factors that could contribute to it such as bad credit or living in a high-crime area. Take care of factors you can control. Check your credit report and fix any incorrect information. Also, check out your Comprehensive Loss Underwriting Exchange (CLUE) Personal Property Report, which provides a seven-year history of losses associated with your personal property; ensure this is also correct. Then search the Web for "high risk home insurance" and compare rates.