Contract's Insurance Clause

[Kevin Lewis]

Hello everyone,

I have a Seller that wants her contract to exclude the Insurance clause per addendum.

Clause:

INSURANCE: As consideration for this purchase the Seller will assign all insurance policies on the property to the Buyer and Seller will grant a limited power of attorney to the Buyer to deal with the lender(s) and insurance provider(s).

The issue from what she explained to me was that she has no lender's because she owns it free and clear... (I explained to her that she is automatically exempt from the lender portion of the clause due to that fact) she also does not want to grant the POA to buyers to deal with the insurance company.

She just doesn't want to because she doesn't think it's necessary.

I have a Risk of Loss clause which allows for an option out if the property were to be damaged

Clause:

RISK OF LOSS: If subject property is damaged prior to transfer of title, Buyer has the option of accepting any insurance proceeds with title to the property in “as is” condition or of canceling this contract and accepting the return of the deposit.

so I didn't  necessarily see an issue with excluding it in an addendum, but I'm not 100% sure.

Does anyone see this as being a issue the may come back to bite me?

Thanks in advance