Insurance can be a problem everywhere!

By
Real Estate Agent with Hannett, Wilson, Whitehouse & Burke, LLC REALTORS

One of my agents just came forward with a problem we have not had to deal with in the past. The new purchaser was being denied insurance coverage on the home they were purchasing because a previous owner had filed a claim several years ago for extensive water damage to the home. The claim is showing up in the CLUE database. The home is currently a corporate owned property and now the corporation has to find the employee and get all of the repair invoices to prove the repairs were made in a timely professional manner before the insurance can be written.

Make sure your Buyers an making insurance application in a very timely fashion.

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Rainer
96,277
Karen Villa Schweinfurth
RE/MAX Northwest Realtors, Inc. 425-308-3669 - Everett, WA
ABR, CRS, SRES, CyberStar
Doug, this is a hugh problem here in the Pacific NW with all the rain and slides we get. Our puchase and sale agreement has a specific clause that allows the buyer to secure homeowners insurance before going forward.
Aug 10, 2006 02:41 PM #1
Rainmaker
605,814
Sharon Simms
Coastal Properties Group International - Saint Petersburg, FL
St. Pete FL - CRS CIPS CLHMS RSPS
We put in a contingency in our offers on a property that the owner is to provide a CLUE report within 5 days and that the buyer has 3 days to review that and find it satisfactory, or he can cancel the contract.  We also have an optional addendum that if the buyer cannot obtain insurance for less than $_____, the contract is null and void.
Aug 10, 2006 03:56 PM #2
Ambassador
659,997
Kristal Kraft
The Berkshire Group Realtors - Denver, CO
Denver Real Estate - 303-589-2022
Our Standard approved Colorado contract has a date we fill out for the buyer to get insurance approval.  It's become a very important issue.
Aug 10, 2006 08:43 PM #3
Rainmaker
495,140
Nima Rezvan
Nima Rezvan Prospect Mortgage NMLS#110681 - Fairfield, CT
First Time Home Buyer Expert - CT FHA Loans - FHA 203k - CT Mortgage
I have never seen or heard of insurance contingency.  I can add that homeowners insurance policies are probably one of the last few steps taken before the closing.  Very similar with all transactions because people want to get the loan cleared to close and then they spend time finding their insurance.  As long as they find it a day before, we are fine.
Aug 11, 2006 02:27 AM #4
Rainer
5,663
Kerri Brencsons
Lift Interiors LLC - Scotch Plains, NJ
Ive also been running into problems when the property has an underground oil tank over 15 years old. Insurance co. do not even want to offer special riders anymore.
Oct 27, 2006 12:04 PM #5
Rainer
20,911
Debbie Johnson
REMERICA United Realty - Novi, MI
Novi, MI Real Estate Professional
Never thought that this was possible.  It is so nice to learn from the experience of another.  Thanks for the tip.
Aug 12, 2007 09:37 AM #6
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Doug & Kathie Whitehouse

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