Question about Homeowner's Insurance
At what point in the buying process is the buyer supposed to apply for or get homeowner's insurance? We are in the process of buying a home from a couple that are being relocated, and the relocation company has basically bought the house from them and is selling it to us. The relo company put an addendum onto the P&S Agreement that says we are required to apply for homeowner's insurance within 7 business days of mutual acceptance (which was 6 calendar days ago).
How can we get homeowner's insurance on a home we don't own yet? I think it also says that if we don't have homeowner's insurance within 15 days of mutual acceptance, that homeowner's insurance will be deemed waived. Can anyone tell me what that means? And maybe give me some insight into why they might have this requirement? How will not having homeowner's insurance on a home we don't own yet hurt us?