When writing an offer on a home, house insurance is a standard subject that takes about three to ten days to fulfill. You must be able to insure a home in order to get financing. If you cannot get house insurance, you most likely will not be able to secure a mortgage.
How do you fulfill a house insurance subject?
There are a couple ways to get insurance figured out. One way is for your Real Estate Agent to ask the listing agent if the Sellers can lift their privacy on their insurance policy. This is the fastest and most convenient way to get a quote and ensure that the house is insurable. The other option is to call around to different insurance agencies to find the best quote. Some companies have online forms you have to fill out with information regarding the home. The amount of questions an insurance company will ask you about the home is extensive. Having an inspection on the home prior to inquiring with insurance companies is the best way to get all the information you may need to fill out the questionnaire. Once you have received a quote from an insurance agency and are satisfied with the pricing, you can now remove your insurance subject.
What if there are issues with the home?
If there are any problems with the home that an insurance company may not approve of, they will give you a timeline to fix or replace the items of concern. For example, if the roof is over 25 years old, they may give you three months after completion to get it replaced. Homes with poly-b piping may not be insurable through all companies. You will have to search around for a company that will insure a home with poly-b and even then they may require a re-pipe within a certain period of time or they will not cover you for any water damage.
Insurance companies may request to see the inspection report. You do not have to provide this, I have been told by inspectors that you should not provide your insurance company with your inspection report. The reasoning behind this is that inspection reports bring up every small or large issue of a home. When an insurance company looks at how many issues there are, they could rack up your insurance rate. Don’t hesitate to reach out to your real estate agent if you have any further questions!
