Many home buyers are concerned about whether they have an insurable interest in the property before the actual closing. The answer is an unqualified "yes". Although the buyer is not yet the recorded owner of the property, he or she has an insurable interest in the property as soon as the agreement of sale is executed by both the buyer and seller.

Should you get hazard insurance before the closing? It depends. Buyers do not usually insure a property until the title passes to them from the seller. However, it's wise to know what the agreement between you and the seller stipulates with regard to insurance.

Most agreements state that the property will be insured for a specific amount. This is very important to both parties. From the buyer's point of view, it is also critical that an adequate sum or full replacement value be stipulated. Watch out for agreements which read "as now insured". This is an all-too-common practice which usually indicates that the seller does not to want to increase inadequate insurance coverage.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

The Michelle Sheehan Team
Gaston & Sheehan Real Estate
1420 HWY 685
Pflugerville, TX. 78660
Phone: 512-989-1054
Fax: 512-989-1094
Email: michellesheehan@NUMBER1EXPERT.com

Born and raised in Austin, Texas no one knows the area better than me!! I am a broker/realtor whose University of Texas marketing background makes me the perfect choice for seller or buyer. Have fun, relax and know you are in the hands of an experienced professional broker/realtor who will guide you through the process of buying or selling your home with YOUR needs as top priority.

www.michellesheehan.com is brought to you by The Michelle Sheehan Team
NUMBER1EXPERT™ in real estate for Pflugerville, Round Rock, Hutto and Austin, Texas

Read The Michelle Sheehan Team's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge