home inspector fails house with Aluminum wiring

[480sparky]

I would guess the insurance company suspected fraud of some sort but was just unable to prove it. Insurance companies are required to pay off unless they can actually prove fraud and it's a very hard thing to prove in many cases. The insurance companies talk to each other and if you are suspected of fraud by one company it's going to be really hard to get insurance someplace else. Given that it is unlikely the guy is going to admit to you he was involved in some kind of fraud it's easier for him to just lay it on the insurance companies. Or he could be completely innocent and all the insurance companies are out to get him. I know what scenario I think is more likely.

They did pay up. And it was just shy of the lifetime maximum payout. Hence, there was no money left to pay any future claims.

 

[kwired]

This could very well be a pass fail type of inspection when it comes to the lender if they do not accept AL wiring.

But in such instance it isn't exactly "pass/fail", it just means one needs to fix any problem found before they are willing to offer their services, which in turn can mean purchaser may negotiate a price with the seller to help cover such repairs. That said it is more likely to be an issue with an insurance provider, which will lead to a lender not willing to help finance something that is considered not insurable.