I have a real estate investor client that is asking about one day...

I have a real estate investor client that is asking about one day insurance for a double close transaction. I'm inclined to think if the seller has insurance through that day, and the buyer purchases insurance to go into effect that day, that it would be a pretty small risk for him not to have a separate policy. I guess if there was a fire that broke out in the window between closings, he could be on the hook? Just curious if anyone has had this come up. The only option I can think of is doing a vacancy policy for one day, then cancelling, but what a pain. Is there a product designed for this type of real estate deal? See less

Carriers Mentioned

NEXT State Farm

Risk Types

real estate double close, short-term vacancy

Agent Replies (8)

Agent Reply

Can you add him as an additional insured on the property for the day? Because if it’s a dual close on the same day, wouldn’t they both need coverage on the same day? If I’m understanding it correctly, seller closes at 10AM to Buyer A. Buyer A owns property from 10AM to 12PM. Then Buyer A sells property to Buyer B at 12PM. Then from 12PM until next transaction that could be 5 or 25 years from now, Buyer B would be the owner of the property. So, why wouldn’t Buyer B own the policy and Buyer A be an Additional Named Insured on the policy for The Day of the transaction only?

Carriers mentioned: NEXT
Agent Reply

Carrier dependent but most of them know that it won’t be occupied the same day as closing where if a claim arises that day it should be covered. Vacant for a day wouldn’t make sense since most of them will be 25% earned

Agent Reply

I'm looking for a system outside of EZLynx to generate/manage COIs. I'm locked into EZLynx because of my aggregator, and it works just fine for my personal lines book. But as the commercial book grows, we just need a better system for acords.

Agent Reply

Gaya AI can generate fillable Acord COI’s in addition to many other features but wouldn’t be a place to manage them.

Agent Reply

Clay Wadsworth Try Wunderite. They’ve been a game changer for us!

Agent Reply

Looking for an independent agent in Milwaukee, WI for auto and home. The insured currently has State Farm and would like to shop around. Thanks.

Carriers mentioned: State Farm
States: Wisconsin
Agent Reply

Happy to help!

Agent Reply

Missy Matthies Hi! I can help also!

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