Home Buying in 89074>Question Details

vicangels, Home Buyer in West Palm Beach, FL

can i get my earnest deposit money back if i fail to get a reasonable policy for homeowners insurance? My loan is contingent on financing.

Asked by vicangels, West Palm Beach, FL Tue Aug 21, 2012

Help the community by answering this question:


Your financing is not contingent upon you getting a "reasonable insurance policy"... in fact, you can finance and get insurance later (and if you don't, they'll auto charge you for one).
0 votes Thank Flag Link Tue Aug 21, 2012
Unfortunately obtaining an insurance policy at what you consider a fair price is not a way to cancel the contract with default (which could cause you to lose your EMD). If the home were uninsurable, then you would be able to legitimately cancel because the lender won't fund your loan without insurance in place.

If you have a "due diligence" period and are still within that timeline and have determined that the insurance is too high, then you could cancel for any reason whatsoever - noisy dog, loud neighbors, expensive insurance - anything you don't like. If your due diligence period has expired, I would recommend letting your fingers do some walking thru the internet and calling companies until you find a rate you like.

Hope this helps,
0 votes Thank Flag Link Tue Aug 21, 2012
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