Many home buyers are concerned about whether they have an insurable interest in the property before the actual closing. The answer is an unqualified "yes". Although the buyer is not yet the recorded owner of the property, he or she has an insurable interest in the property as soon as the agreement of sale is executed by both the buyer and seller.
Should you get hazard insurance before the closing? It depends. Buyers do not usually insure a property until the title passes to them from the seller. However, it's wise to know what the agreement between you and the seller stipulates with regard to insurance.
Most agreements state that the property will be insured for a specific amount. This is very important to both parties. From the buyer's point of view, it is also critical that an adequate sum or full replacement value be stipulated. Watch out for agreements which read "as now insured". This is an all-too-common practice which usually indicates that the seller does not to want to increase inadequate insurance coverage.
The Sue Martin Team Coldwell Banker Gundaker 516 Old Smizer Mill Road Fenton, MO 63026 Cell: 636-795-3400 Office: 636-717-6000 Fax: 636-326-1000 Sue@SueMartinTeam.com
Sue Martin and her Home Selling Team is the Fenton area's #1 full-service Realtor whose business success is based on a results-oriented team approach. This dedication to service has resulted in The Sue Martin Team being ranked by St. Louis Business Journal and St. Louis Magazine as one of Metro St. Louis' top Realtors. Sue and her team of professional agents are focused on providing quality services to facilitate home buyers and sellers in achieving their real estate goals through exceptional customer service, track record and experience, and results-based systems. Referrals and recommendations from past clients and customers are a testimony to the team’s commitment, high performance standards and results.
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