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Old 02-04-2010, 11:55 PM
 
20 posts, read 145,472 times
Reputation: 13

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Hi Rhys,

Thanks for the tip. I had made a mental note while reading one of the articles on the net to verify before hand if I will get back any pre-paid premium back if I cancel the policy (if the house gets sold). I never wrote it down. Thanks for the reminder. I have to follow-up on that tip.


Hi Sergio,
Since we have already moved out of the house, the current HO insurance carrier has asked me to find a specialized provider, because my policy will soon be terminated. We have just put the house up for sale, we are nowhere near 'closing'. I hope this helps clarify the situation

By the way, I got the following quotes (I still need to go through the details though)...
1.) Lloyds ($1500 for 6 months)
2.) Foremost (through Geico) $5000 for 1 year (I have to follow-up to see why their quote is so high)
3.) Foremost (through an independent agent) $1500 for 1 year (the agent quoted me for 'Primary residence' saying that since we haven't purchased a new property yet, we can still consider the old house as our primary residence)
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Old 02-05-2010, 05:36 AM
 
Location: Cranford NJ
1,042 posts, read 3,443,180 times
Reputation: 396
Quote:
Originally Posted by RhysNJ View Post
He's not dealing with any type of real estate or loan closing; he's facing either mid-term cancellation or non-renewal. Full payment on most agency-billed policies would be required prior to binding.

Rhys

My Broker WILL allow you to pay at closing.
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Old 02-05-2010, 06:22 AM
 
Location: Northern NJ
450 posts, read 1,464,210 times
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Sergio...again...there IS no "closing" here. That is not an insurance term. He's being cancelled or non-renewed. He needs a new policy.

Rhys
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Old 02-05-2010, 08:49 AM
 
387 posts, read 1,226,367 times
Reputation: 217
Quote:
Originally Posted by RhysNJ View Post
Sergio...again...there IS no "closing" here. That is not an insurance term. He's being cancelled or non-renewed. He needs a new policy.

Rhys
I think you may be misunderstanding him. his real estate firm has a program to insure vacant homes MOd cut. they will provide coverage for a vacant home, but the seller does not have to come up with the premium for it until they close.

to the OP, I'm in the wholesale end of the business, and work with surplus lines carriers. if you want to send me a DM, i'd be happy to recommend a good retail broker in your area.

Last edited by Viralmd; 02-05-2010 at 03:18 PM.. Reason: NO reference to specific realtors or real estate companies.
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Old 02-05-2010, 01:12 PM
 
Location: Northern NJ
450 posts, read 1,464,210 times
Reputation: 227
I can't imagine any insurance agency or carrier that would bind coverage but then defer collecting premium until the property actually transfers to someone else. That makes zero sense. If you know of someone offering that arrangement, please give me the name and we'll send plenty of prospects over.

What incentive would anyone have to make good on paying a back premium once the house is off their hands?

Also, I would rule out that third quote received where it is being suggested that this is still your primary residence. That's only true if are still living there. If you were, you wouldn't be having this problem. The fact that the present carrier is getting off for that very reason has to be revealed on your application. You don't want to put yourself in jeopardy of having a claim denied or worse, being turned over to the State Insurance Fraud prosecutor. Don't do it.

Rhys

Last edited by RhysNJ; 02-05-2010 at 01:20 PM..
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Old 02-05-2010, 02:26 PM
 
Location: Northern NJ
450 posts, read 1,464,210 times
Reputation: 227
Sure sounds like other clients' premium payments are being co-mingled to front the seller's premium obligation.

I guess I've heard of crazier things, as long as it has been deemed to be legal by the Department of Banking and Insurance.

Rhys
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Old 02-05-2010, 11:46 PM
 
20 posts, read 145,472 times
Reputation: 13
Hi Rhys,

You are right about the third quote. I spoke to the agent and after explaining to her that we don't actually live in the house (she thought we were out on business and so the property was vacant. So she put it down as our 'primary residence'). After understanding the actual situation, she quoted me a different amount.

I have spoken to two independent agents and two national carriers and the company most favored seems to be Foremost. I then called Foremost and I got the lowest quote from them. It is still very high, but lower than what I was quoted by the agents.

One year's premium (at @2500 deductible and no coverage for vandalism and water damage) I was quoted a price of about $3,200.00. I can pay in 12 installments and can cancel the policy at any time. Whenever I cancel the policy they will retain $250 and return me the rest. Given the fact that Geico works with them and two reliable agents quoted me their rates, I am thinking I may get a policy from Foremost.


Hi Hal Jalikeakick,
Can you please reply to my email, I wanted to get the contact information that you have to offer.
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Old 02-06-2010, 12:11 AM
 
5,610 posts, read 7,176,812 times
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Not too familiar with this stuff, but why is being the primary residence so important? Don't people with vacation homes have insurance on them too?
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Old 02-06-2010, 08:06 AM
 
Location: Northern NJ
450 posts, read 1,464,210 times
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Quote:
Originally Posted by GoPhils View Post
Not too familiar with this stuff, but why is being the primary residence so important? Don't people with vacation homes have insurance on them too?
Yes, we do. They are considered "secondary" residences and are sometimes written freely on a Homeowners form, sometimes on a Dwelling Policy, and sometimes are difficult to write with standard carriers. Whether or not it is rented to others can have a bearing on how it gets insured.

My primary carrier will not touch my vacation home not so much because it's a secondary residence, but because it's on a barrier island. I extended the liability and contents from my primary homeowners policy but the dwelling itself had to go on a Surplus Lines dwelling policy. Technically, it's not considered a vacant home because it is used seasonally and on weekends and has personal property there, etc.

Rhys
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Old 02-06-2010, 08:11 AM
 
5,610 posts, read 7,176,812 times
Reputation: 3130
Quote:
Originally Posted by RhysNJ View Post

My primary carrier will not touch my vacation home not so much because it's a secondary residence, but because it's on a barrier island. I extended the liability and contents from my primary homeowners policy but the dwelling itself had to go on a Surplus Lines dwelling policy. Technically, it's not considered a vacant home because it is used seasonally and on weekends and has personal property there, etc.
Thanks for the info. I know it's not considered vacant, but it's not your primary residence which is what I was kinda confused about.
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