Buying New Home No Home Insurance on Current Home

[tkirk8]

Hi all I am new to this forum. I am in the process of buying a new home. The lender is asking for an insurance quote on the new home and a copy of our insurance for our current home.

Here is the problem. We currently own our home outright and do not have insurance. I called to get a quote today and was turned down, due to the insurance company telling me that since I had a couple of shingles come off my current home and me not fixing it was considered an open claim.

So any advice on what I should do next? Are other home insurers not going to give me a quote based on me not having insurance currently?

 

[AgentProvocateur]

Hi all I am new to this forum. I am in the process of buying a new home. The lender is asking for an insurance quote on the new home and a copy of our insurance for our current home.

Here is the problem. We currently own our home outright and do not have insurance. I called to get a quote today and was turned down, due to the insurance company telling me that since I had a couple of shingles come off my current home and me not fixing it was considered an open claim.

So any advice on what I should do next? Are other home insurers not going to give me a quote based on me not having insurance currently?

A common eligibility requirement these days is for the applicant to have prior insurance for a period of time, if they had a need for it, such as owning a home. This may not be a requirement with all companies, but it will be with many companies.

However, some agents may be able to work around that requirement (I know many Allstate agents will) with a new purchase. You shouldn't need to have home insurance for your current home to qualify for the loan, though it would be wise to find a company willing to insure it, and buy coverage.

Comparison shop to see what your options may be, and be sure to include a few independent agents, as well as the household names of which you may be familiar. Which state is the new home located in? Agents in this forum may know & work in your local market.

 

[tkirk8]

We are located in the Springfield, IL area. The current home is in desperate need of a new roof and most likely would not be insurable at the current stage. I was just curious if this could mess up the entire loan process.

I have received an online quote, very reasonable, but will contact other independent agents as well as the big boys.

 

[Josh]

The lender shouldn't be concerned with the insurance on the previous home because they don't have an ownership interest in it. They're going to be listed on the policy on the property they will have the interest in and that's what they should be concerned with. You can also find a new lender. I've recently started working with some mortgage brokers and I'm sure there are plenty that would be happy to help you work with your current situation. Feel free to shoot me an email if you need a new mortgage broker and I can get you a referral, [email protected].

Good luck with your new home! When everything is finalized it will all be worth it!

 

[Guest]

We are located in the Springfield, IL area. The current home is in desperate need of a new roof and most likely would not be insurable at the current stage. I was just curious if this could mess up the entire loan process.

I have received an online quote, very reasonable, but will contact other independent agents as well as the big boys.

I am an agent with a captive company and we do not require previous HO insurance to write an HO policy. Some companies do, some don't.

My company has agencies in IL and you may want to visit with one of our agents to see what we can do for you. Plus we give really big discounts on new homes.

PM me or post your email if you want more info. Doesn't hurt to visit with an agent and get a quote. You'll want to get many quotes from many companies before making a decision.

 

[tkirk8]

I am an agent with a captive company and we do not require previous HO insurance to write an HO policy. Some companies do, some don't.

My company has agencies in IL and you may want to visit with one of our agents to see what we can do for you. Plus we give really big discounts on new homes.

PM me or post your email if you want more info. Doesn't hurt to visit with an agent and get a quote. You'll want to get many quotes from many companies before making a decision.

Thank.you both so much. I have sent.my concerns to our current lender. If this falls through for this reason i will be in touch.