Wednesday, July 27, 2016

Keep it simple when you are buying homeowners insurance

Cell:  (301)943-4370
According to the GCAAR sales contract for Maryland and Washington, DC homes, within 1 week of a contract offer on a home being accepted, the home buyer must apply for homeowners insurance on the home, to make sure the home is insurable.  If the home isn't deemed to be insurable, then a buyer probably can only go through a home purchase with a loan...unless the property condition(s) are addressed and deemed to be satisfactory by the insurance company.
When you are in the process of buying a home and getting estimates for homeowners insurance, simply tell the insurance company that the property is fine.  If you start talking about the house, the inspection matter how good the condition is, the insurance company may ask for a copy of the inspection report.  They may tell you that you have to make some repairs before settlement or within a certain time after the purchase is complete otherwise the insurance company may say the home isn't insurable and you won't be able to complete the home purchase.  At this point you will either have to make some calls and get another insurance company to approve you for a  home insurance policy or you will have to buy the home with cash.  

By the way, if you own a home without homeowners insurance, when it is time to move, you may only be able to sell the home to buyers who are paying cash.  So, keep it simple!  When applying for homeowners insurance and the person on the other line asks you about the house/condo/townhome, simply say the home is in fine condition or they may probe further into the house and make it harder for their company to insure the home.  For more information about home insurance, contact a homeowners insurance agent as this is obviously his/her field of expertise and ask a real estate attorney (if you are actually in the process of buying a home ask the settlement company)  for implications if during the home buying process there end up being challenges obtaining insurance.
Whenever you or someone you know is thinking of buying or selling, has a real estate question or wants to talk about the market please call or email me.  I would love to connect and always appreciate your referrals.
Life is good!
Adam Bashein
RE/MAX Realty Group
Licensed in MD &DC 
Cell:  (301)943-4370
Office:  (301)921-4500 - ask for Adam
information deemed to be accurate, but not guaranteed