Many home buyers are concerned about whether they have an insurable interest in the property before the actual closing. The answer is an unqualified "yes". Although the buyer is not yet the recorded owner of the property, he or she has an insurable interest in the property as soon as the agreement of sale is executed by both the buyer and seller.

Should you get hazard insurance before the closing? It depends. Buyers do not usually insure a property until the title passes to them from the seller. However, it's wise to know what the agreement between you and the seller stipulates with regard to insurance.

Most agreements state that the property will be insured for a specific amount. This is very important to both parties. From the buyer's point of view, it is also critical that an adequate sum or full replacement value be stipulated. Watch out for agreements which read "as now insured". This is an all-too-common practice which usually indicates that the seller does not to want to increase inadequate insurance coverage.

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Beth Dorman
Coldwell Banker Resort Realty
20184 Coastal Hwy
Rehoboth Beach, DE 19971
Office: 302-227-5000
Cell: 302-381-2777
Toll Free: 800-800-4134
BethDorman@NUMBER1EXPERT.com
beth@bethdorman.com

My focus is on personalized service. I listen very carefully to my clients so that I can assist them with their needs and wants and make every transcation as smooth as possible.