In order to close on the purchase of a home, a buyer must obtain a homeowners insurance policy. A few years ago a property insurance deadline was added to the buy/sell contract. This clause gives the buyer the right to shop around and make sure that an acceptable and reasonable homeowners policy is available for the house they are purchasing. This contingency came about after some insurers, after a particularly dry and fire laden summer, decided to add outrageous premiums to mountain homes. Many buyers were waiting until the last minute to line up their insurance and found it was too late to cancel the contract after they found out what it would cost. The situation has settled down now but the deadline and contingency is still in place. Here is a video that gives some good tips for those who are looking for homeowners insurance. It is also a good idea to shop around every few years to make sure you are not paying too much. Please let me know if you need a recommendation of a local insurance agent, I know some good ones.
Neil Kearney has been a Realtor in Boulder since 1991. He is the Broker/Owner of Kearney Realty Co. which is located in downtown Boulder. He specializes in residential real estate throughout Boulder County and serves the communities of Boulder, Broomfield, Louisville, Lafayette, Erie, Superior, Longmont, Niwot and Gunbarrel. The information on this website has been written by Neil and it represents his research and opinion. The statistics are based on data from IRES MLS system. Thanks for visiting.