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Property Insurance - Make Sure You Can Get It!

Posted March 15th, 2009 under pitfalls, smart buying, smart selling.

Lately, it has become more common for a buyer to submit an offer that is conditional on the buyer being able to obtain property insurance. Traditionally, if a buyer was unable to get property insurance, their mortgage application would be denied, the deal would fall through, and the buyer would lose their deposit. Lately, insurance has become harder to get as insurance companies are getting very picky about things such as oil tanks, fireplaces, types of wiring, plumbing, insulation, and the age of roofs and furnaces, to mention a few.

As a result, buyers have begun protecting themselves by inserting a property insurance clause. However, when a deal falls through it inconveniences the seller as well, so really it is in everybody's interest to find out early on (not just a few days before closing) whether or not insurance can be obtained. The seller should also keep in mind that the seller's insurance usually cannot be transferred to the buyer, so it is a new insurance policy that is needed.

Need to know more about property insurance? Just ask me, I'll be happy to help.

--Peter

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