Many home buyers are concerned about whether they have an insurable interest in the property before the actual closing. The answer is an unqualified "yes". Although the buyer is not yet the recorded owner of the property, he or she has an insurable interest in the property as soon as the agreement of sale is executed by both the buyer and seller.

Should you get hazard insurance before the closing? It depends. Buyers do not usually insure a property until the title passes to them from the seller. However, it's wise to know what the agreement between you and the seller stipulates with regard to insurance.

Most agreements state that the property will be insured for a specific amount. This is very important to both parties. From the buyer's point of view, it is also critical that an adequate sum or full replacement value be stipulated. Watch out for agreements which read "as now insured". This is an all-too-common practice which usually indicates that the seller does not to want to increase inadequate insurance coverage.

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Lee Tessier
RE/MAX American Dream
9414 Belair Rd
Baltimore, MD 21236
410-638-9555
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Lee Tessier of RE/MAX American Dream provides real estate services in Baltimore, Maryland including Baltimore County and Harford County. I list and sell real estate in the following Baltimore Counties, White Marsh, Perry Hall, Dundalk, Essex, Kinsville, Upper Falls, Nottingham, Parkville, Timonium, Cockeysville, Hunt Valley, Monkton, Townson, Glen Arm, Baldwin and the following Harford County communites of Abingdon, Edgewood, Bel Air, Darlington, Dublin, Monkton, Norrisville, Pylesville, Street, Whiteford, Forest Hill, Churchville, Jarrettsville, Fallston and Joppa. I list and sell residential real estate investment properties, historical properties, land, condominimums, townhomes in Baltimore, Maryland. I work with Military families with buying and selling real estate or relocating to and from Baltimore, Maryland.

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