Insurance Can Be a Challenge
As you know, most of the real estate news is about the tough housing market and mortgage lending issues. The economic conditions have caused insurance companies to become more stringent than in the past when considering home policies.
It is imperative you check into insuring a property while in your option period, or before you are locked into a hard contract. Insurance companies are performing more due diligence than in the past and have become more picky about whether or not they will insure a home.
In the Highland Lakes area many communities do not have fire hydrants, which can be a reason for denying a policy. I recently had an insurance company deny a policy because a water heater was not installed with the correct overflow plumbing.
In the past you could call most companies and create a new policy over the phone. There are still multiple providers. Just make sure you check into a policy on a specific property well in advance of closing to avoid surprises.