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The Tallest Realtor in Town

Hill Country and Highland Lakes Real Estate Blog by Jeff Spears, 6 ' 7" Tall.
Insurance - Check This During Your Option Period

When purchasing a home, make sure you get an option period to conduct inspections and find out more information before being "locked-in" to a contract.

One of the key items to look into during your inspection period is insurance.  This is often overlooked.  Contact your insurance agent and ask them about the insurability of the property.  Some properties may carry higher premiums or not be insurable due to previous claims.  Ask your agent to pull a CLUE report on the property and share the results with you.  This will tell you if the property has had a major claim in the past do to a major invent like fire or flood.

In the process, make sure you understand the amount of your premiums and how much coverage you have.  If you finance the property and pay the insurance through escrow, you will have to pay the first year in advance at closing in most cases.

If you are purchasing anywhere in the Highland Lakes area, make sure you ask your insurance and real estate agents about flooding and the need or possibility for that type of coverage.

If you take care of these items while in your option period, you will have the ability to walk away from the deal if any big surprises come up.  Waiting until the later stages of closing to get your insurance lined up can be a major and costly error.

 

Posted: Monday, November 23, 2009 2:12 PM by Jeff Spears

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