closing insurance?

JamieApril 22, 2011

We plan to buy the next home before closing on the current one. The time difference is just a couple of weeks. The buyer of the current house has all his ducks lined up and the deal looks very solid.

Also, the price of the current home (the one we are selling) is very realistic.

Is there somebody out there who sells insurance that buys the current house from you if a deal falls through? Seems like there should be. This deal will only fold if seller dies or is fired or the like.

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Lloyd's of London will insure just about anything, for a price.

A large company I worked for used Lloyd's to re-insure employee life insurance when field service workers had to operate in war zones.

    Bookmark   April 23, 2011 at 9:00AM
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I imagine the premium for any such insurance would be a fairly large chunk of change, say $20K, so that if your deal fell through they could cover the price reduction needed to get it off their books. To merit a smaller premium, they'd have to do a ton of due diligence on the deal, to judge the probability of the deal falling through. And by the time they did that, it would be closing time.

    Bookmark   April 23, 2011 at 9:58AM
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