Posted by Eric - GA on December 18, 2002 at 09:52:16:
Tell your insurance company you want coverage to start on the closing date. Then tell the closing attorney to call the insurance company and find out how much 1 yr’s premiums are, and to take that out at closing. Then the attorney will pay the insurance company out of his escrow account following closing. This is standard practice.
Eric - GA
Purchasing Insurance - Posted by G(Atlanta)
Posted by G(Atlanta) on December 18, 2002 at 09:45:15:
Hello All,
I am in the process of closing on a property, but I need to get insurance. Is it possible to pay for insurance at the closing table with the cash I will receive at closing? If so, what approach do I take to do this. My loan officer is telling me I will need to have insurance. I want to be able to pay for this at closing. Is this possible?
Thanks in advance for your help,
G(Atlanta)
Re: Purchasing Insurance - Posted by svg01(ny)
Posted by svg01(ny) on December 18, 2002 at 11:39:39:
You may have to pay for binder prior to the closing until you develop a relationship with an insurance agent. In my neck of the woods, lender will not schedule closing without the insurance in place.
Yes, this is common - Posted by MoniqueUSA
Posted by MoniqueUSA on December 18, 2002 at 09:53:53:
G,
It is very common for insurance to be paid as part of the closing proceeds.
Simply tell your insurance agent to send the bill for the hazard insurance premium to the closing attorney so that it arrives prior to closing and can be included on the HUD1 Settlement Statement (fax if necessary). The closing attorney will cut a check to the insurance company for the premium.
This assumes that your agent gives you binding coverage as of the date of the closing.
MoniqueUSA