If you’re purchasing property in Colorado you need to pay attention to ALL the dates & deadlines in section 3 of the Contract to Buy and Sell CBS1-6-15. Everything on this contract is an intricate part of the process. SpecificallyI want to talk about Section 3.27 in regards to the Property Insurance Objection.
Most of my buyers say something like “oh, I’ll just call the insurance company I’m using now” That’s a great place to start, absolutely call your current company. But most agents I know will recommend calling a few companies. Why?
Not all insurance companies can insure the property you’re trying to purchase. It may be too far away from a fire department. The property may have a long history of claims. And these insurance companies may or may not be able to include your vehicles if you were planning on having everything on one plan.
When you qualified for a home loan your agent probably told you that both you and the property you want have to meet loan qualifications. Same goes for the insurance. And here’s the kicker! If you’re getting a mortgage and don’t have insurance you’re not closing on the loan. More than one buyer has been handed a phone book at the closing table.
This of course can be avoided if you and your agent go over the contract you’re signing and you ask questions. Know what you’re signing. Sound right?