Less Costly Insurance Urged for ‘As Is’ Buys

Mike Teverbaugh’s article on disclosure problems (May 25) prompted the thought that brokers could find a market for many homes by offering discount prices to buyers willing to accept homes “as is” and “with all faults,” if insurance companies offered “pig-in-a-poke” policies at attractive rates to allow the homeowner to insure to replacement value for hidden defects.

It stands to reason that a buyer who wants protection should pay for it, and buyers willing to settle for less--the “fixer-uppers”--should not have to pay for protection against defects they prefer to correct themselves.

Obviously, insurance companies can offer better rates to the individual buyer, since the broker is a “deep pocket” risk, and the buyer is not. The availability of low-cost “structural defect” insurance would protect the buyer, while discount prices would make homes more attractive to first-time buyers.

The only losers would be contingency fee lawyers, and they’re all so rich they’ll never notice the difference.

JAMES F. GLADKIN

Pasadena