Has the insurance industry really gone crazy?

By
Real Estate Agent with ERA Beach Ball Realty

Just the other day I had a win win deal going with the sale of a home.The seller had his home on the market for 3 years with no buyer.It was not over priced just a unique property.The buyers had a forclosure last year with the housing market the way it is.The buyers have had excellent credit their entire lives.

The sellers offered to carry the financing on the home with only closing costs up front.We had all the details worked out , then I called for an estimated insurance quote. I was quoted $ 1236 a year for the premium. Sounds good so far. I then told my buyers to call and get a binder before closing. The buyers had a credit report in hand and were then told their premium would be $2840 because of the forclosure.

Just seems like another wayfor insurance companies to steal from the people they are supposed to be helping.The housing crisis as they call it is based on insurance, mortgage and other industries in the state that make up their own set of rules as they go.

If everyone would work together in this and forget personal greed the entire economy would flourish again alot sooner.

Comments (5)

Jean Powers
Kane & Associates call 510.908.9002 - Alameda, CA
CRS,e-PRO,HAFA,SFR Broker, Northern California

Golly, I have never heard of such a thing, raising an insurance premium because it is a forecloure property! They have gone crazy

May 30, 2008 12:05 PM
Karen Turney
Homesmart - Phoenix, AZ
Phoenix Real Estate

Whoa, I would like to hear from others who have experienced this.  I realize that former claims can effect your insurance rate, but a foreclosure?  If this is the new trend, what is the upside of the foreclosure market?  It seems that non-foreclosed homes are selling for nearly the same prices and with little or no work needed on the home after closing. Now it could cost more to insure them?? Where is the bargain? When you add the repairs needed and the increased insurance premium, look at the time it takes to get a lender (trustee)  to settle the escrow, it seems like the upside is vanishing.

May 30, 2008 12:18 PM
Gregory Lohr
West Columbia, SC

Idiots, they are everywhere, and they don't even know they are idiots.

I would love to see their justification for such stuff.

May 30, 2008 12:27 PM
Pam Winterbauer
Pam Winterbauer Real Estate - San Ramon, CA
"Providing Blue Ribbon Service"

This sounds like highway robbery and the insurance companies are being very picky.

May 30, 2008 06:06 PM
Larry Darr
ERA Beach Ball Realty - Pensacola Beach, FL

Just to clairify a thing or two. The insurance rate was raised because the buyers had a forclosure the year before.

Jun 02, 2008 04:28 AM