The process for home buyers obtaining insurance is getting "simpler".. Yes, Mortgage brokers make it easy by asking the question: Can we (mortgage broker) arrange the insurance for you?

This seems like a simple enough question and lends "ease" in the mortgage process.  Getting the application correct is the first part to making sure the customer is afforded coverage when a claim occurs.  The application is the foundation to providing and extending coverage.  When the applicant signs the application, time needs to be afforded to ensure the data is correct.   The closing table is the wrong place to present the application and ask for a signature.

When a claim occurs shortly after closing, the entire application could be a point of review.  When a application is presented and signed at closing, the possibility of error exists and that error if not correct PRIOR TO signature could be construed as miss-representation or more strongly defined as "Fraud".  Now that is a strong statement and is a overstatement in many of the applications for insurance.  The key is to disclose information like prior losses.  If the applicant/buyer has several losses that are not disclosed, the application is in jeopardy.

Be careful and look out for your customer.  Have them prepared at closing with the insurance process well behind them.  Accidents happen and seeing a application for insurance at closing is not as strong as walking through the process with a agent well before the event.

NOTE: I work with mortgage companies and mortgage brokers do aide in the process well...  Do not see this post as a anti-mortgage company solution. 

Matt Locke  www.GeorgiaHomeInsurance.com