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We made an offer on our dream house last week! Isn’t it pretty? Now we have so many things to do just to get ready to move it’s easy to overlook one thing or another. Packing and cleaning our current house and getting it ready to sell, changing all the utilities, addresses and other important things is high on our list. We have 30-days to close this deal and a lot of work to do just to get ready. The first and most important step has been making sure we have our mortgage loan started.
In just a few weeks we will all meet at the title company and sign those documents making our dream house a reality. It is very easy to overlook and forget one of the most important things we need before we get to the table at the title company. A Home Insurance Binder for our dream house!
Our bank loan officer has mentioned it once during our processing. I haven’t heard anything yet from the title company, or the real estate agent. But, having been an insurance agent for 20 years I know the number one thing that delays the signing of the papers making a house someones new home is the dang Insurance Binder!
It isn’t that difficult to obtain one, especially if already insured with a company. It is just about as simple as any of the other telephone calls I need to make. But, for some strange reason people–including myself–seem to put this step off to the last moment. I am vowing to make the call first thing Monday morning!
I just need the details about my soon-to-be new home, which are actually written all over the offer and the mortgage loan papers. Square footage, exact address and construction materials. Really, nothing of a mystery and nothing I can’t find on at least two or three different documents. A simple call to my agent with these details and an Insurance Binder will be issued and our dream house will become our home.
Once we close the deal our insurance company will finish underwriting the policy and the binder will become our dream home insurance policy. Why is this such an easy step to put off? I don’t think real estate agents, title companies or loan officers point out the insurance binder requirement enough. I can’t tell you how many Friday afternoon at 4:30 urgent calls I received as an insurance agent from someone in panic over an insurance binder. Nine out of ten times it was not too difficult to get one out in the last 30 minutes of the last work day of the week, but when there were four people in need of the same thing it was enough to make a nice insurance agent scream!
Be kind to your insurance agent, and when you are buying a new home try to contact your agent as soon as you start the loan process. It isn’t too difficult to get an Insurance Binder out to the title company, but when you want it instantly it can be the worst part of the day for your agent. I will be making my call to my insurance agent Monday morning–I promise.
Related Blogs:
- What is PMI–Private Mortgage Insurance?
- A General Overview of Home Insurance
- Reviewing Your Home Insurance Policy
Glossary of Insurance Terms:
A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z
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