The important thing to remember is you can not insure something that you do not have an insurable interest in. If you do not own the home, then you have no need for the insurance, thus no insurable interest.

Some companies may charge a minimum earned premium. What this means is if the contract specifically states you must pay a certain amount regardless of whether you needed the policy or not you will not get your money back. Not many policies do this but they do exist expecially for hard to insure homes. Even with that being said you may still be able to argue the insurable interest rule.

Best thing to do is ask your insurance agent upfront. I will say almost all policies will refund your money if you never take possession of the property.

P.S. We are insurance agents and we can help.

Hi Primatanya, securing homeowner's insurance is a prerequisite to close - the question you ask is a good one, and has been undoubtedly considered by most buyers as they head towards the finish line of their home purchase. Rest easy, if the deal does not close, you will be refunded your money. But as Larry advised, contact the insurance company pronto to avoid delay or confusion.

Good luck on your closing!

Best,
Jeannie Feenick
Search and connect at http://www.feenick.com

YEs you cannot provide insurance on anything you do not own... the effective date is date of closing or day before but you can;t insure something you do not have interest in.
They will give a full refund.

Make sure you contact ASAP though.


Larry Sarlo
Weichert Realtors
609-868-1171 http://www.LSarlo@comcast.net