Setting up Insurance with new Property under contract

[Tyler Davis]

Hello!

I have a done a few deals and have always had issues with the insurance part of the process. 

My issue is my Lender need's proof of insurance on the property before he signs off on it and gives the final okay to the title company to finish closing. The problem is I can't setup insurance until I have a closing date from my title Company(to put the effective date on the policy). As you can see it's a endless loop of:

- Lender needs insurance

- Insurance needs closing date from Title Company

- Title Company needs sign off from Lender before closing date is set

Obviously, I can set the insurance date to the closing date on the Agreement of Sale but there are instances where closing has taken longer than that date and we've had to write up extensions. In these scenarios I've had to cancel my policy and rewrite it to the new date( my insurance agent does not like doing this and say's its frown upon to cancel policies so I don't like to setup insurance right away).

My question to the Bigger Pockets community is, at what point in the closing process do you setup insurance? Do you setup insurance right away with the closing date on the AOS? Do you wait to setup insurance until Title Company has a closing Date?

Thanks!