Home Buying in Palm Coast>Question Details

aprilsowers10, Home Buyer in Florida

what does it mean when you have homeowners insurance on a house that you haven't closed on yet?

Asked by aprilsowers10, Florida Fri Aug 31, 2012

does it mean we are close to closing or the bank accepted our offer?

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Homeowners insurance needs to be aquired for the purchase of a home if you are getting a mortgage. Mortgage companies want to be sure that they are protected from the day of closing and onward in case a issue arrives (hurricane, flood, etc) which could effect the value of the home. If you pay for homeowners insurance prior to closing and the closing was delayed, then the insurance should prorate and reimburse you the funds at the time of closing for any funds in which you paid but didn't have ownership of home.
1 vote Thank Flag Link Fri Aug 31, 2012
Flag Fri Aug 31, 2012
Your homeowners insurance policy will begin once the bank has accepted your offer and the title is put into your name.

The money is then taken from closing costs and put into an escrow account which your lender is responsible for (mortgage guy) and dispersed to the insurance agency responsible for your homeowner's policy.
0 votes Thank Flag Link Fri Aug 31, 2012
Since you are the person paying, and signing up, it means that someone is committing fraud!

I would guess that the Bank, (or someone) transferred the existing policy to your name.

You should talk to the Listing Agent and maybe the Title Company.
You shouldn't be paying until it is in your name.
0 votes Thank Flag Link Fri Aug 31, 2012
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