You are ready to find your dream home.  You have spent many hours online doing your research and,more than likely, just as many hours have been spent in the car driving from one neighborhood to the next, “hunting for it”. You have found your realtor and narrowed down your search the new spot that you can call home.

Then “it” appears, the home that meets your wants…on to the offer.

Fast forward a little bit, the process is moving right along and a closing date is set. The current owners ask to stay in the house after closing, while they wait on their new home to close.  It seems like a reasonable request and you decide to let them stay.

Now bare with me while we jump back a little bit. Before closing you got your new homeowners policy in place. Since your are officially the owner of the new residence, your policy is in place. Your homeowners policy is now covering a home you are not living in, and you are now assuming the risk of someone else.

 

Does this raise any red flags to you. Maybe this isn’t even something you thought about before, or an experience you’ve had throughout the home buying process.

  • What if the previous owner flooded the laundry room with that last load of laundry when they overloaded it?
  • What if they put all sorts of large dents in the walls getting the couch out of the basement?
  • What if the wood flooring you fell in love with now has gashing’s in it from where they scooted the dryer across it?

Who is responsible for these repairs? As the new homeowner having the damage done post-closing you are responsible for the repairs. It could be you could submit a claim against your brand new homeowners policy, however it could be turn down. If you are lucky enough that your new policy would cover it, you will still have your out of pocket expense would be your $1000 deductible. It doesn’t have to be that way though.

That previous homeowner turned into a tenant at closing. So they are now renting from you, often realtors add wording into the contact to pay for their use of the home past closing. Ask them to take it a step further and require the previous owner to gets a short term renters policy to cover you for the their time in your home.

Renters policies are inexpensive but provides coverage needed in case an accident were to happen in the interim time period. For the short time period a renters policy would be in place, it may cost the previous owner $10-30 for the month and possible save you thousand.

 

Now those what if’s, have favorable answers. You can turn those claims into the other persons insurance instead of taking the burden and the deductible on your own.

If your are currently house hunting or are a realtor with a client in the same place and this sparks some questions give us a call. We are here as your resource.