• Home
  • Get A Quote
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
Call Full Armor Insruance Services CALL US TODAY | (208) 664-6000
Home
  • Home
  • Get A Quote
  • Personal Insurance
    • Automobile
    • Homeowners
    • Life
    • Motorcycle
    • Watercraft & Boat
  • Business Insurance
    • Business
    • Church
    • Non Profit
    • Mission/Travel
  • Life and Health
    • Dental
    • Group Health
    • Life
  • Resources
    • Secure File Area
    • Make a Payment
    • Refer a Friend
    • Policy Management Forms
    • Important Links
    • Insurance Glossary
    • News Center
    • Join Our Newsletter
  • About Us
    • About Full Armor Insurance Services
    • Our Locations
    • View Our Blog
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact
Business Insurance BUSINESS

Browse a variety of insurance options in order to find the right one for you.

Read More
Auto & Home Insurance AUTO & HOME

A standard policy insures the auto & home and the things you keep in them.

Read More
Life Insurance LIFE

Learn about different life coverage options that fit your specific needs.

Read More
Non-Profit Insurance NON-PROFIT

Finding insurance doesn't have to be difficult. We do the work for you.

Read More
Travel Insurance TRAVEL

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Auto Insurance CHURCH

Church insurance protects you against financial loss if you have an accident.

Read More
Home > Blog > Home Insurance When Buying A House From Friends Or Family
FRIDAY, FEBRUARY 28, 2020

Home Insurance When Buying A House From Friends Or Family

A house sale between friends or family members is likely going to be a relatively informal affair. You're probably going to want to enlist an agent or a lawyer to make sure that you've crossed all your t's and dotted all your i's. But part of the reason you're selling to, or buying from,Couple with keys to new home a friend is to save yourself some red tape and headaches.

Even so, there’s still some paperwork to be filed. Here's what you need to keep in mind where home insurance is involved:

  • You're going to need an inspector. Your home insurance company needs to know what their risks are. If there are any leaks or necessary repairs, they need to know what those are before they cover the home.
  • You might not want to buy the home through a mortgage, but it could be easier that way. A letter of pre-approval can save you and your insurer a lot of hassle. If the sale is being made in cash, the seller can have an attorney verify the funds to make sure everything is sorted.
  • You'll need to have the home appraised. The seller may want to cut their friend or family member a deal at "friend prices." But both parties — and your insurer — need to know how the home is valued on the market. Note that selling too far below market value will draw the attention of the IRS. Even if you're just trying to be nice, selling a home for several thousand dollars less than it's worth looks a lot like money laundering to the authorities.

Once you have all this sorted, buying home insurance is simple. But it's important that you do have this sorted out. You want to cut through the red tape, sure, but sometimes that red tape is there for your benefit.

One of the benefits of selling to a friend or family member is that there are far fewer hoops to jump through. But we don't advise a completely informal sale. Without going through the proper channels, an informal house sale can create a lot of financial troubles for both parties. And it can even ruin a friendship. If you can afford to buy a home from your friend, uncle or cousin, you can afford a little extra to cover closing costs.

Also Read:Do You Owe Taxes on Reimbursements for a Home Insurance Claim

Posted 3:11 PM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015

  • insurance(20)
  • coverage(19)
  • non-profit insurance(14)
  • full armor insurance services(13)
  • tips(13)
  • business insurance(12)
  • car insurance(11)
  • life insurance(7)
  • protection(6)
  • home insurance(6)
  • liability(6)
  • property(5)
  • idaho(5)
  • auto insurance(5)
  • idaho insurance(5)
  • church insurance(5)
  • property coverage(2)
  • advice(2)
  • savings(2)
  • risks(2)
  • employees(2)
  • safety(2)
  • auto(1)
  • teen drivers(1)
  • alarms(1)
  • ministry(1)
  • claims(1)
  • fire prevention(1)
  • home(1)
  • retirement(1)
  • professional liability(1)
  • liability coverage(1)
  • new car insurance(1)
  • premiums(1)
  • d and o insurance(1)
  • security(1)
  • options(1)
  • non profit insurance(1)
  • commercial property insurance(1)
  • liability insurance(1)
  • equipment insurance(1)
  • full armor insurance serives(1)
  • product liability coverage(1)
  • commercial insurance(1)
  • collision(1)
  • church(1)
  • injury(1)
  • types of car insurance(1)
  • comprehensive(1)
  • risk(1)

View Mobile Version
Facebook
Twitter
LinkedIn
Blog
Google+
ING
GuideOne
Foremost
CNA
Progressive
The Hartford
Safeco
American Modern
Travelers
Bristol West
Zurich
Twitter Logo
Tweets by @FullArmorIns

Resources

Home About Us Get a Quote Customer Service Newsletter Contact Us

Contact Us

Map
  • Full Armor Insurance Services LLC
  • 500 N Government Way, Ste. 300
  • Coeur d Alene, ID 83814
  • O: 208-664-6000
  • O: 866-245-1077
  • F: 208-765-8676
© Copyright 2017. All rights reserved.
Powered by Insurance Website Builder