Insurance on Duplex...where did I go wrong?
I'm under contract for a duplex in Gulf Breeze and shopped around for insurance. After obtaining several quotes from brokers, I sat on them until we had a close date established. Long story short, our closing was delayed once and urgency was of the issue due to the seller wanting to back out. Below is a timeline of events and this has been an enormously frustrating situation. I'm hoping to hear from the community as a better way of doing this the next time around.
- Friday morning: a close date was finally established for the following Tuesday. Only thing missing was the insurance declaration page. I called the vendor of choice (Vendor A) and she starts the process to bond the coverage.
- Friday afternoon: I learn the quote was rejected from the original underwriter as it was 30 day sold. A new quote from the same underwriter increased the quote 3X and they also wanted to eliminate wind coverage (which is unacceptable in a hurricane zone). I quickly begin to work with Vendor B and after re-quoting, premium was the same, I felt we were good to go. I ended the day ensuring the lending agent and insurance agent had each other's contact info so they could continue the process.
- Monday mid-morning: I sent a follow-up email to both lending and insurance agent to ensure they've touched base. They had not and as a matter of fact, insurance agent wasn't even in the office. I call Vendor B, explaining my situation and that I needed an agent to help me asap to keep this closing from dissolving.
- Monday afternoon: the lender and new agent from Vendor B insurance finally touch base with me guiding and performing a lot more hand holding than I've ever expected. It is then realized that quote from Vendor B issues replacement cost, while the lender requires replacement value. Vendor B quickly has to go and rebid, we quickly settle on coverage, and the insurance underwriter has computer problems delaying the issue of the declaration page.
I've never had to be this much involved before and the one leading difference here is the lender. My first time with them and they have become my new 4-letter word. BUT, I can't help but think there is something I could have done better in making sure insurance quotes/declarations don't postpone our closing. But what? I'm clouded by the lackadaisical effort of the lender, I'm hoping the BP community can weigh-in to set me straight. What is the best, most non-frustrating way you've acquired quotes and policies for your rental properties?
#frustrated