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How Homeowners Insurance can Kill the Deal

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By : Alan Barker    99 or more times read
One of the most frustrating things about buying real estate is all the things that can go wrong. It's hard enough to find a house you're willing to make an offer on, but then after the house is under contract, there are about a dozen different "deal killers" that can happen. There can be inspection issues, appraisal issues, financing issues, employment issues, and even insurance issues.

Recently we had a real estate deal where the insurance company, requested to see a copy of the home inspection for a house our company had under contract. The buyers agreed and gave a copy of the inspection report to the insurance agency.

The inspection report showed some minor electrical issues. The issues weren't serious, but the way they were written in RED BOLD on the report unleashed red flags for the insurance provider.

The insurance provider wouldn't provide a policy with these issues. Because insurance is needed to get mortgage financing, and mortgage financing was needed so our clients could buy a house.

Now this deal may not be dead, there are a couple different options. The buyers can arrange for the electrical issues to be repaired and then re request an insurance policy with their chosen providers, or the buyers can simply find a different insurance company.

This is just another thing to be aware of when writing an offer. When buying a home, make sure you complete inspections, arrange financing, and home owners insurance as soon as possible. Being prepared, and allowing plenty of time will protect your earnest money, and allow you to keep the deal alive.
Alan Barker is a real estate agent in Northern Utah and can help you find Utah Real Estate includingOgden Utah Homes and Logan Homes for Sale. Contact Cornerstone Real Estate professionals for all your Northern Utah Real Estate needs.

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