Buying a home? You need to check-out your insurance options ASAP!

Jeff Snyder

Talking from experience, getting home owners insurance in place is almost an afterthought for most of today's buyers. 90% of the time—no problem. A couple of phone calls, a little magic behind the curtain and you've got an insurance policy in place. Here's the big warning—most banks won't let you close escrow without seeing a copy of the actual policy.

Under most circumstances, insurance issues aren't investigated, coverage is simply ordered, and as we said, this normally happens a day before closing your escrow. But, What if your new home has some sort of insurability issue? You've already removed your purchase contingencies and if you cancel the purchase, you're running the risk of losing your good faith deposit. Here in the South Bay, the Good Faith deposit is customarily 3% of the purchase price—a big hunk of change, that's for sure.

The goal of today's journal entry serves to remind that insurance is a priority and that you need to investigate your insurance options during contingency period, which is usually 17 days or less from the acceptance of your offer.

We are partnered with the insurance team of Jeff and Cynthia Snyder. If you need insurance help, these are the folks for you. 

1417 N. Sepulveda Boulevard, Manhattan Beach, 90266 | 310-546-7803

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