I have a contract on a house that we are buying (thanks CN for making it all possible). I need to buy a years worth of insurance for it before the close date of 8/8/03. I have another home that is currently under contract and is due to close on 8/1/03. This particular home is currently being insured by the mortgage company. You see we refinanced a few years back when my credit was real bad and to make a long story short American Family cancelled the policy due to what they saw in my credit report. I had been with the same agent/company since I was old enough to drive then with the new mortgage the payments were no longer being made thru escrow and I got caught with an expired policy and they would not renew. Anyway I am wondering how this is going to effect my being able to get a fair rate today (My TU FICO was around 645 and EQ FICO around 660 when I began my mortgage hunt.) Not sure what they are now (got me about 12 hards due to loan hunt). Questions: Can I just tell the new agent that I am a first time homeowner? If the current Ins situation does not matter as much as credit worthiness could you point me to a agency that only pulls TU ? That is my best and I noticed that a CA that I had in dispute on my EQ just came back verified today. Oh yea, I am in Missouri. Thanks, DX
Insurance companies cancel policies all the time, for all sorts of reasons that don't involve the homeowner's credit or claims. If I were you, I would simply say that you had to find new insurance because your current insurer stopped renewing policies in your area. They don't have to know that "your area" means the 3 feet immediately surrounding you. Try going to a local insurance agent who works with a variety of insurers. They'll be able to find you a policy.
Sorry for your troubles - American Family went off the deep end when it came to credit - most agents know about it. The advice to get an independent agent is good advice - telling them a story is bad advice - we all know when we are hearing those little fibs, and we wonder what really happened. Tell the agent the truth, they will be a ble to pick a company that does not rely so heavily on credit - trust me, they will help you, not hurt you if you tell them the truth. Now when you deal with ONE major insurer, who does not have local agents, this is not always the best policy. If you have to call an 800 number to get the policy, the agents are constantly monitored, and if you tell them something, they have to enter the information into your file, or they could lose their jobs. So, the correct procedure with them, is to answer any direct question, directly, but volunteer nothing. Don't get into a conversation with them, or if you do, be careful what you say. Not so with independent agents. They can use their judgment, and select the best company for your situation. You also will not end up with tons of inquiries from the agent trying to place you with the wrong companies. I fyou tell me what state you are in, I might have more specific info to give you.
I am an Agent. You should be fine, just let the agent know that you need a policy for a new purchase. Ask if they use credit as a criteria. If they ask about previous insurance just tell them the name and policy number of the company the lender placed coverage is on, no need to volunteer it is lender placed. If you have previous claims they will find out so be honest. My agency asks if there were any bankruptcies or foreclosure in the past five years. We pull no credit. Hope this helps.
Homeowners insurance has become such a big issue that many Realtors are writing offers subject to getting insurance. The issues other then credit can be previous claims against the home, there is a data base and if there has been many other claims against the home you are dead in the water, many home insurers are increasing more concerned about the actual property condition as well. 20 years ago the agents didn't actuall inspect the average home on a regular basis. Interesting to note I had a feeling that this could be a very big issue in my search to buy a foreclosure that was in less then perfect credit. Many hours of research I found a company here in the Northwest called National Merit. As of right now National Merit underwrites based upon the past claim record of the home owner, not the home! This could be a huge advantage for someone in need of insurance on a home that has had previous claims or damage or whatever? I was able to get a policy binder for our purchase in less then 5 hours! COST $295/ year!!!!!!! The appraisal was in in 48 hours and Title took 36 hours. Super rush deal. Dog
Is that for a policy for dwelling fire coverage, as a landlord? Is it an actual homeowners policy? If so on the policy it will say (HO3) if it is a dwelling policy it may say (HO6). There is a huge difference if you are going to live in it versus just renting it out. There are two different policy types. There are many companies out there that will write a policy regardless of previous claims on the person purchasing or the property itself. If it is an actual homeowners policy (HO3) you will pay much more in premium, sometimes up to double the amount than someone without previous claims.
Creditdog is it Actual Cash Value or Replacement Coverage? That will make a big difference on the amount of coverage and price.
Well it is replacement coverage for the lender, What lender would allow an actual cash value policy???
Replacement covrage means that in the event the house is destroyed it will be replaced. This also includes the personal property of the homeowner. The only thing that really matters to the lender is that the mortgage loan is covered RC or ACV does not matter. It should matter to the purchaser. Some lenders will allow ACV if it is equal to the loan amount and the homeowner cannot locate insurance anywhere else.
