According to local agents, lenders, and insurance representatives, what one owner pays today for their property insurance is likely NOT what a buyer/new owner will have to pay. OBAR has learned that new policy premiums, especially flood insurance, can be up to 20 times higher than what is currently charged. Don’t let your buyer get caught outside of the due diligence period by finding out their property insurance premium disqualifies them for a mortgage. We are seeing it happen. Local insurance agents that recently attended a meeting held at Keller Williams OBX, along with mortgage lenders and Government Affairs reps from OBAR, stated they would be able to quote a policy for your buyer during the due diligence period. Best practice – get a quote on all mandatory insurance policies as soon as possible when representing a buyer.
