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Question about Homeowner's Insurance

Posted by dawiff (My Page) on
Tue, Jul 7, 09 at 2:20

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?

Follow-Up Postings:

RE: Question about Homeowner's Insurance

You should contact an insurance agent now to comply with the contract. If you're getting a mortgage on the property the mortgage company will not even give you a mortgage without an insurance policy in effect on closing day. And some will tack on their own insurance policy which is quite costly.

Your policy effective date would be date of closing. In my instances of purchasing a home, the insurance policy cost was added into the closing costs of the home and paid at closing.

This is a very common occurence and insurers are equipped to deal with this, give your insurer a call. Often your automobile insurer will give you a package deal if you insure your home and auto with them.

RE: Question about Homeowner's Insurance

Have you (or your agent) asked the relo company for a CLUE report yet? I would want one of these before I closed. In the meantime, I'd give my insurance company a call and see what they have to say.

"Get insurance early! Learn the claims history on the property you own and the property you're buying. If you want to know of prior losses that may impact the availability or price of your new home's insurance, ask the seller to provide a copy of the home's loss history report (called a CLUE ® or A-PLUST Report) with the disclosure statements. This is a record of home insurance claims that have been reported or filed in the past five years. Finding out what claims have been filed in recent years, such as water loss claims, can affect whether the property is considered higher risk. When you're selling your home, also make sure you know what the loss history is on your own home.
# Do your homework. To order a CLUE ® Report, see To order a copy of your A-PLUST Report, call 1-800-709-8842.

Links that might be useful:

Homeowners Insurance - Don't Forget the Keys

Get a CLUE (Report)-Comprehensive Loss Underwriting Exchange

10 things you need to know about homeowners insurance

12 Ways to Lower Your Homeowners Insurance Costs

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