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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Kristine Devine, CRS
Keller Williams Integrity First Realty
2500 S. Power Rd., Suite 121
Mesa, AZ 85209
Direct: (602) 920-7653
Fax: (480) 889-2123
Toll Free: (800) 595-2130
Kristine@DevineProperties.com

My mission is to Always Care. My vision is to be the Real Estate Team of Choice. Why should you choose Devine Properties? It is difficult to be the pitcher, outfielder, and baseman all at one time. A single agent just cannot field every hit. Whether buying or selling it is a complex process. When you select our group of Real Estate Specialists you are ensured the highest level of professionalism guiding you through every facet of your real estate transaction. Our consultative approach sets us apart from other agents. We do not simply "tell and sell." Our goal is to guide you in making highly effective and informed decisions every step of the way.

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