Insurance Cancelled - Need Some Ideas - Posted by B.L.Renfrow
Posted by B.L.Renfrow on December 07, 1999 at 10:19:45:
Have a SFR under contract with closing “on or about” Dec. 17. I have it under contract to a retail buyer and I am in the process of setting up a simultaneous close with a note sale at closing.
However, I was advised by my seller that the homeowner’s insurance company discovered the house has been unoccupied for the past 18 months (owners moved to a nursing home, and deeded the property to their daughter, who placed it in a trust, from which I am buying).
The insurance company apparantly mailed something to the house marked “do not forward” and investigated when it was returned. According to my seller, they wanted to cancel the coverage immediately, stating that they will not insure unoccupied properties. Apparently, the seller begged, pleaded and cajoled them into continuing coverage, but they absolutely would not insure beyond the closing date in our contract of Dec. 17, after the seller told them she had a contract to sell on that date.
As the appraisal and title work have not yet been completed - and this is New York - there’s no way I will be ready to close by Dec. 17.
So, what are the options for insuring this place until closing? Obviously, neither my buyer or I can obtain coverage, since neither of us own it yet. The seller is beside herself, and I can’t blame her. She is elderly and is worried about what would happen if the place burns down while uninsured.
I don’t recall the insurer - might have been Allstate, but I’m not certain. The seller is dealing with a local agent, with whom her family has done business for many years, but apparently the agent hasn’t been able to suggest anything.
Any ideas are appreciated.