Posts Tagged buying real estate

San Francisco Buyers: note to self about homeowner’s insurance

first of all, it’s important to know that buyers of real estate need proof of insurance is needed to obtain mortgage financing. Due to losses from earthquakes, etc. there had been many insurance companies that are withdrawing from California.

So here are some things to keep in mind as note to self when looking to buy a real estate property.
1. make sure you request the sellers to provide disclosures of any known insurance claims made against the property during the seller’s ownership.

2. you can add in the purchase contract to request the seller to provide a “CLUE” (comprehensive loss underwriting exchange) report on himself/herself and the property. This report tracks the loss history for persons and properties for the past 5 years, and is used by insurance companies to make decisions on whether to issue homeowner’s insurance to a person or property.

3. if necessary, you can make the contract contingent on the insurance reduce the risks of not being able to get a reasonable homeowners insurance.

4. If you have to get earthquake insurance, make sure it covers the following: 1. dwelling coverage (essentially the cost to rebuild the structure on he property) 2. contents coverage 3. additional living expenses (“LAE”)


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