Insurance policy from contract onwards

[Sunny C.]

I have a foreclosure property under contract however I am afraid that there may be water damage due to freezing temperatures. Is there a policy insurance policy then I can get which would cover this situation and protect me from any possible freezing/water damage from the point of my getting into contract and then closing the sale and then further on from that point on words. So essentially I amLooking for a insurance policy which covers water damage from the point of signing the contract on words. Is there an insurance policy that I can get like this.

[Alicia W.]

I'm a little unclear if you are stating there is existing water damage or you are afraid there is a possibility of future water damage due to freezing pipes. If you are inquiring about obtaining insurance to cover preexisting damage, the answer is no. The underlying principal of insurance is to provide indemnity for a future and unknown loss. If you are seeking coverage for the possibility of freezing and bursting pipes in the future, yes you can procure insurance to cover you beginning at the time you take ownership of the property (closing). I hope this answers your question.

[Jason Bott]

@Sunny C. since you do not own it, you can not insure it.

My other landlord clients will not close if the property has had a "material change" during the time of offer acceptance and closing.

[Shawn Clark]

Originally posted by @Sunny C.:

I have a foreclosure property under contract however I am afraid that there may be water damage due to freezing temperatures. Is there a policy insurance policy then I can get which would cover this situation and protect me from any possible freezing/water damage from the point of my getting into contract and then closing the sale and then further on from that point on words. So essentially I amLooking for a insurance policy which covers water damage from the point of signing the contract on words. Is there an insurance policy that I can get like this.

 No. But foreclosed properties are usually winterized. Was it? You have to just plan on problems. Besides, foreclosures are AS IS.

The one we bought in 2015 was like a sieve when we turned on the water. Leaks all over the place. You have to plan on that kind of thing. It's not that big of a deal, actually, as long as you check for it right away and don't let the damage spread.

[Charlie MacPherson]

@Sunny C. Further to @Shawn Clark's point, if you don't have easy access, one way to tell if a property has been winterized is to look at the MLS listing photos.

If there are small signs or tags that are taped on sinks, toilets, dishwashers, etc, those normally are signs stating the the water is off and that the property has been winterized.

Around here, they're usually neon green or orange stickers with a few that are just white slips of paper.  You'll also commonly find painters tape across the toilet and sink.