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Real Estate Tips
Insurance >Hazard Insurance

Are you considering taking out hazard insurance on a property before you actually take title? It may be a good idea!

Even though you are not yet the owner of record, as the buyer, you have an insurable interest in a property the moment that you and the seller execute the sales agreement. As a matter of practice, however, buyers do not usually take out insurance until the papers change hands, and it should not be necessary if the agreement of sale is properly executed.

It is very important to both parties that the agreement states that the property will be insured for a specific amount. From the buyer's point of view, an adequate sum must be stipulated, and the agreement should not read "as now insured", which can indicate that the seller may not want to increase the insurance.

As a general rule, the amount of insurance on the buildings on a property should equal the sales price, less the value of the lot.

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Real Estate Trivia
Q 
How much does a celebrity's name boost the price of a property?

A 
Typically no more than 5 percent, but there are exceptions--the greater the fame, the higher the price!
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Carmela Pereira, REALTORŪ, real estate agent and broker for Nutley, Belleville and Clifton, New Jersey home listings, property and land for sale

Carmela Pereira
Coldwell Banker Franklin Realty

527 Franklin Ave.
Nutley, NJ 07110
973-580-1991
Fax: 973-235-0718
carmelapereira@NUMBER1EXPERT.com


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