Home owner's insurance after buying property at the auction.


#1

What happens if something happens to the property like caught fire by accident the next day after buying property at the auction?. Do the investors buy the home owner’s insurance as soon as they buy the property probably the same day?. is there a time period that investors have to wait before buying insurance may be until the trustee’s deed is recorded?. if that is true what if something happens to the property after buying at the auction and before recording the deed?.


#2

Hi Rick,
You would want to insure the property as fast as you can. You would want to reach out to a commercial insurance agent or one that is familiar with writing a policy on a property purchased at trustee sale. If you have paid your money and gotten your receipt that property is yours unless the sale is rescinded by the trustee.


#3

I have bought two properties at the auction in Las Vegas. After I bought the first one, a veteran of the auctions told me to buy home owner’s insurance before I went home that day. You own the property when the auctioneer’s gavel falls, and you are liable for the property from that time forward.


#4

Just want to clearify, you are buying home insurance, not title insurance. (only because it said home owner’s insurance and title policy is called home owner’s policy as well^^)
Yes, i know all investors that i work with purchase insurance as soon as i get the property. So i definitely think you shall get insurance upon purchase.Thank you