Insurance Issues
Insurance Issues Transaction Checklist
- Discuss current insurance market conditions with your insurance agent and any problems you may have in obtaining insurance on the home you are purchasing.
- Review offer to purchase to identify insurance issues/contingencies or need for such contingencies with your attorney.
- Contact one or more insurance agents immediately following the acceptance of purchase contract by both parties to begin process of obtaining necessary insurance.
- Obtain commitments to issue an insurance policy from an insurance company in writing and carefully review it with your attorney or insurance agent to determine scope of that commitment.
Be aware of alternative insurance sources that may be available if a problem develops:
- Know available sources of insurance (i.e., what other insurance companies are in market by calling different insurance agencies in the community)
- Check with Seller’s current insurer to determine if that insurer will continue to insure property with new owner
- Check with Buyer’s current insurer to determine if that insurer will continue to insure buyer in a new property
- Alternative forms of coverage that may allow transaction to proceed (FAIR Plans, Fire & E.C., etc.)
Information provided by the Risk Management Committee of the National Association of REALTORS.
