Checklist for Acquisitions-Land contracts,
When is Cancellation of existing hazard insurance done
The cancellation of existing hazard insurance is done by the home owner and they do it via a written notice where they mention as to which representative will be managing the property and that the policy which was taken with them will then be replaced with the new policy with the representatives.
When the cancellation of existing hazard insurance is done, if there are any refunds, the company will send it back to the home owner.
The existing hazard insurance policy is usually taken and it takes a total of a few weeks in order to be in effect. This is needed as a home owner and fire insurance. The coverage is for fire and there could be extended coverage as part of it as well, this extends to windstorms, damage due to hail, hurricanes or other such perils.
The insurance amount is equal to 100% of the value of the insurables as well or it could be for the unpaid balance of the amount of the mortgage.
As part of the flood insurance, based on the location of the property, flood insurance will also need to be taken if your property is near a flood hazard area.
There is also a general insurance and this normally unless specifically asked by the homeowner normally does not exceed to more than 1% of the face amount of the coverage of the dwelling. When there is hurricane or wind coverage, the maximum which can be deductible could be upto 2000 usd.
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