SCR is receiving reports of insurance companies requiring roof replacement shortly after closing.

Buyers who cannot afford a new roof may see their insurance canceled. Then, the mortgage lender to protect themselves will "force place" insurance which will be very expensive. Failure to pay the PITI mortgage payments can result in foreclosure.

SCR is receiving reports of flood insurance price increases and cancellation due to repetitive flood insurance claims involving prior owners.

REALTORS® can provide SCR233 to alert buyers to insurance issues that need to be investigated by the buyers PRE-CONTRACT (or at least during the due diligence period of SCR311).

REALTORS® can face lawsuits, ethics complaints, license law complaints, bad press, and client not giving referrals if these issues are not handled carefully and disclosed.

SCR233 can help REALTORS® disclose insurance issues and recommendations.

Repair procedure only requires the seller to consider fixing roof leaks on a worn roof.

Due diligence allows the parties to negotiate replacing a worn roof. Parties can even raise the price to cover the roof replacement (e.g. financing the roof into the mortgage to avoid big post-closing expenses and issues).

Posted by: Byron King on 01/24/19 (This information is only accurate as of 01/24/19. You must contact SCR for updates and changes to this information after 01/24/19 as laws and regulations may change over time. SCR 803-772-5206 or email info at