Home Purchase Closing Dates Always Changing

Nov 17, 2015

  1. lhpgators
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    lhpgators Expert

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    I'm a newer agent and I'm not sure if there's a "best practice" way to alleviate this. Recently I have been spinning my wheels because new home buyer's closing dates keep changing. I always ask for a firm closing date before binding but of course they always change. Is there a better way to deal with this?

    BTW some of my carriers change bind date by quick endorsement change. But some of them are complete re-writes.

    Thanks in advance
     
  2. hesse
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    hesse Guru

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    You don't submit a policy until it has closed. Put on your calendar the date its supposed to close and follow up after there closing appointment then submit.
     
    hesse, Nov 17, 2015
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  3. djs
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    djs Super Moderator Moderator

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    Can you submit the business on the closing date? Or at least, wait till 3 days before when the closing date is usually pretty solid.

    Keep in mind, for many carriers, its easier to delay the start date but to make the start date earlier is almost impossible, ending up in a re-write.

    Overall though, this is part of the mortgage game. A lot of paperwork gets changed every time they change that closing date.

    Dan
     
    djs, Nov 17, 2015
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  4. lhpgators
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    lhpgators Expert

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    Its seems that the mortgage companies are requiring that they get proof of insurance and the invoice prior to the actual closing. None of the carriers I write with have those documents available until the policy is bound. Is that the same for you guys? Or are the mortgage companies you deal with ok with just a quote prior to the closing date?
     
  5. Arnage150
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    I'm assuming you have an Agency contract with the insurer you are placing these people with. Most agent contracts give you binding authority for anywhere from 7-14 days.

    We hold off binding it until the insured tells us they closed. We issue a binder and paid receipt but don't actually bind anything. Put a diary in for the closing date to contact the insured. If they closed. Bind it. If they didn't get the new expected close date and put a reminder in for that date.

    Again this only works if you have binding authority. Miss a few days with a company you can't back date and you are in trouble.
     
  6. HCCIA
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    HCCIA Expert

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    This scares me! Way too easy to miss binding a policy. Potential huge E&O exposure!! Most of my companies will allow us to change the effective date. The closings generally NEVER close on time. It's very frustrating! BUT-- we have to play this damn game because most of my referrals come from mortgage brokers or closing attorneys.
     
    HCCIA, Nov 17, 2015
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  7. agentinsouth
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    100% agree! Huge E&O issue.

    Most of my business are mortgage brokers and Realtors. I always ask the mortgage broker the earliest possible close date and then date the policy 3-5 days before that date. Problem solved.
     
  8. cgreene
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    Create your own dec page then bind when closed.
     
    cgreene, Nov 17, 2015
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  9. hesse
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    hesse Guru

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    There is no insurable interest 3-5 days prior to closing.

    How are you paying for these policies a week early?
     
    hesse, Nov 18, 2015
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  10. lhpgators
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    lhpgators Expert

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    Is that ok to do though? That would mean the risk has two policies for that time. Is that allowed?
     
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