Who's Responsible for Homeowner Insurance on Wraps

[Rene Delgado]

Hi All,

I'm set to close on my first deal early next month and am really excited. I've learned a lot during this first deal, most of it through trial and tribulation. I ran into something that although it was a non issue on this first deal, I wanted to get insight from the community for subsequent deals. 

When it comes to Homeowner's Insurance on Wraps, am I as the seller, responsible for setting this up for the buyer prior to closing?

Let me provide more context from my first deal. On the first deal, I purchased a home sub-to and then sold the home on a wrap. From what I gathered, all 3 parties (initial seller, myself, and end buyer) needed to be listed on the homeowner insurance policy.

I got in contact with an insurance agent that came highly recommended from other investors and had him draft up a quote and send it to the end buyer. 

Now this is wherein my question lies. At the point when the insurance agent sends the quote to the end buyer, am I then done with the insurance piece? Or do I have to follow up with the end buyer to ensure that he obtains homeowner insurance prior to closing?

I could see this being an issue if the buyer hasn't obtained homeowner insurance by time of closing if it is required, so I just wanted to get clarification from the community as to what my responsibilities are.

Curious to see how everyone else handles this portion when selling via a Wrap.

Thanks!

Rene