The way it used to be : Buyer puts a contract on a house, goes through all the processes to get to closing, and a few days prior to closing would call his insurance company to get a homeowners’ insurance policy. The way I prefer : As part of the Offer to Purchase, we include this form which sets out the following three things: – Maximum annual premium for Homeowners’ Insurance policy – Maximum deductible (higher is better, in my opinion) – Timeline for the Buyer to confirm that he can get sufficient coverage that fits within these limits. … With the proliferation of CLUE Reports, which essentially serve as CarFax reports for houses, sometimes a house can have a “bad credit report” which can impact a buyer’s ability to purchase affordable homeowners’ insurance. If we can remove one variable from the equation, which this addendum does, we’ve achieved a simple win-win for both the buyer and seller.

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