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Are you considering taking out hazard insurance on a property before you actually take title? It may be a good idea!

Even though you are not yet the owner of record, as the buyer, you have an insurable interest in a property the moment that you and the seller execute the sales agreement. As a matter of practice, however, buyers do not usually take out insurance until the papers change hands, and it should not be necessary if the agreement of sale is properly executed.

It is very important to both parties that the agreement states that the property will be insured for a specific amount. From the buyer's point of view, an adequate sum must be stipulated, and the agreement should not read "as now insured", which can indicate that the seller may not want to increase the insurance.

As a general rule, the amount of insurance on the buildings on a property should equal the sales price, less the value of the lot.

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The Caprio Group Inc.
The Caprio Group Inc.
3001 Lava Ridge Ct., Ste. 100
Roseville, CA 95661
916-580-6030
Fax: 916-580-6130
capriogroup@NUMBER1EXPERT.com

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With a combined 50+ years of real estate experience, we confidently offer our clients a level of performance that has consistently earned us the rank of top producers. We also provide aggressive, active marketing and are persistent and focused on achieving the results our clients desire. Because you have the support of an entire team, you can rest assured that all the “i’s” are dotted and the “t’s” are crossed—nothing slips through the cracks because everything is checked and double checked. The team approach also allows us to give you our undivided attention—someone is always available and working for you.