Insurance on a property just purchased at Auction.com?

Question

Hello, my wife and I finally bought a property on today's auction in San Antonio, Texas. We are new to this but are happy to learn in the process. We bought the house with no mortgage nor loan on it and when we tried to get a homeowner's insurance through lemonade.com they said they do not insure homes without a mortgage.

Our questions to crowdsource are:

1. Between today and when the deed arrives, are we already liable should lets say a fire take place?

2. Any non-bureocratic home insurance recommendations for properties with no mortgages?

Any insight is appreciated!

Bigger Pockets Podcast, thank you for bringing us to this point.

Account Closed · Answer

Hello Todd and Lien, thank you so much for your insight! Will definitely continue to search. Geico did offer to insure but Auction.com told me it was one of the risks of buying foreclosed properties. Excited but nervous about this process lol.

Lien Vuong · Answer

You are the owner the second you're recorded on the deed so I do not believe that is the case just yet. Try local insurance brokers that can help with your property. Premium might be high because home is vacant so it's not being monitored for any harm but it's imperative to protect your newly purchased asset.

Michael Noto · Answer

Account Closed Is the property vacant or occupied? That factor may change the types of insurance coverage you have access to.

Todd Rasmussen · Answer

Account Closed

Congratulations on your auction win. You are liable as soon as are the owner. If that is today, and you are just waiting for the deed to show up in the mail then it's your liability starting today. This is the first time I've heard of a company not insuring something that didn't have a mortgage? I would say you should consult an insurance agent that is not computer code unless you are versed in insurance yourself. There are a lot of nuanced decisions you will make in the application and coverage that can have significant impact on your risk. We use State Farm for everything we can and have been very happy with them.

Account Closed · Answer

Hello Jackson, thank you so much for reaching out. Fortunately we got a policy with our car insurance provider. Shall keep you in mind for future needs. Very grateful,

Allan Szlafrok · Answer

@Daniel Herbruger you are liable the second ownership transfers. Realprotect does a great job on insurance for investment properties all over the country. They do policies on non mortgages properties. They are based out of GA just so you call the right guys.

Insurance on a property just purchased at Auction.com?

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