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Too SLOW getting HO insurance???

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Too SLOW getting HO insurance???

Old 09-03-2011, 04:53 AM
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Default Too SLOW getting HO insurance???

I bought a house a month ago and paid cash for it. State Farm gave a quote and we sent payment in. They say we are still not covered because of an AIUA (Alabama company that insures on the coast) review of the home coverage (basic).

I've never had this happen where I bought something and got bound by insurance over the phone. Now, a month later, State Farm is still not able to provide coverage. What gives?


You can't get insurance before you own property, and if you buy property and then have a period of time between closing and coverage, we're at 100% risk.

Does anybody have insight into this problem?
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Old 09-03-2011, 06:35 AM
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I always apply for the insurance and wait until it is reviewed and coverage is approved/policy is issued prior to closing. Never had to wait more than about two weeks for the review. Maybe someone dropped the ball (State Farm).
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Old 09-03-2011, 02:25 PM
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Maybe just a fluke, but we've always made phone calls to bind things on the day we bought them. How did you secure insurance on a property you didn't own yet...and did you send the premium in prior to closing?
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Old 09-03-2011, 02:49 PM
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That is too long. The NC Beach Plan, which is proabably like the AIUA policies are effective the minute we upload the information unless there is a binding restriction due to an incoming storm. Did they say anything about the AUIA having to inspect the home before binding coverage?
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Old 09-03-2011, 03:36 PM
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Originally Posted by bamaboy473 View Post
Maybe just a fluke, but we've always made phone calls to bind things on the day we bought them. How did you secure insurance on a property you didn't own yet...and did you send the premium in prior to closing?
Yes, gave agent the premium and waited until house was inspected. Then binder/policy was issued. Never any problems with the inspections or time frame to do them.
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Old 09-03-2011, 03:42 PM
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Oh, and never had a problem paying premiums to any agent. They are not going to pay unless you are the "owner" but that is normally no more than a week or two.
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Old 09-03-2011, 04:55 PM
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Originally Posted by Shag View Post
Did they say anything about the AUIA having to inspect the home before binding coverage?
The agency's owner is the person that came out to take photos of the home...and that was weeks ago.

Thanks for your insight, guys. Right now I'm not rocking any boats, but when the house is insured, I'm going to shop around and see whether this is normal now, or whether buying a house contains a HUGE amount of personal risk for weeks on end.

....sitting in the middle of a monsoon rainstorm and praying that the roof is solid....
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Old 09-03-2011, 05:04 PM
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? 95% of people buy insurance on homes they don't own yet.

No way a bank will lend to you unless you show proof that it will be covered for loss on the day you're supposed to sign your mortgage papers.

Get a new agent and fast. Their incompetence is putting you at risk.
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Old 09-03-2011, 05:08 PM
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Originally Posted by Flot View Post

Get a new agent and fast. Their incompetence is putting you at risk.
Agreed. They aren't nearly as concerned as I am about a lack of coverage. OTOH, nobody would expect over a month to go by without coverage.

Does buying a house for cash change the rules? Does buying a house cheap change them?
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Old 09-03-2011, 05:16 PM
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Originally Posted by bamaboy473 View Post
Agreed. They aren't nearly as concerned as I am about a lack of coverage. OTOH, nobody would expect over a month to go by without coverage.

Does buying a house for cash change the rules? Does buying a house cheap change them?
We just bought a house, cash as well. Have State Farm insurance, and it went into effect immediately. Good thing, hail soon after, new roof, gutters, etc. 10K at least.

Sounds like someone dropped the ball.
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