What should I expect from my insurance agent/agency when I buy a new home?
Insurance is a part of your home closing process. So, outside of being sure that you have an agent that cares about your purchase and protection, offers a reasonable rate and appropriate coverage, you want to make sure that there will be no hiccups in your closing process!
Some insurance companies have specific issues with certain properties that can cause a delay if they are not addressed in a timely manner. Consequences of not doing this include delays in closing your home, delays in financing,and even possibly losing your deposit and the home if you miss your close of escrow date.
A few examples of things that can cause delays in your insurance are:
- A house that has Knob and Tube wiring is extremely hard, if not impossible, to find coverage for and can cause delays in closing if it can even find the appropriate coverage.
- A house with less than 100 Amp service is again not going to be cheap, if its even available.
- If the property has un-repaired damage to it, especially if visible from the street, may cause an insurance carrier to cancel the policy.
- If there are tree branches touching the roof, or moss of the roof, you are in for difficulties with your insurer.
Making sure these obstacles are addressed before you get to the closing table is important! But, don’t fret! Good communication between your insurance agent, Realtor, loan officer and title company will be sure that your closing goes smoothly and all these issues are addressed and won’t be surprises later.
It’s always a good idea to be cognizant of these types of issues and be proactive in preventing them.
If you have any questions on this please feel free to contact me at ctrowbridge@farmersagent..com or 1-650-Farmers.
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