4 ms·

I wasn’t actually confronted with the paperwork. When I purchased my house, the insurerer that was selected by my bank informed me (several times) that they wer

I wasn’t actually confronted with the paperwork. When I purchased my house, the insurerer that was selected by my bank informed me (several times) that they were unable to provide the complete coverage details and contract until after the insurance contract was in place. Even then, it took me several calls and interactions to get them to send me the actual detailed insurance contract. They tried to fob me off several times with a brief summary document. I would be surprised, based on my experience, if people are actually confronted with the paperwork as you suggest. The default flow of my home purchase made it clear that my request to review the coverage contract was so far outside the norm that they weren’t really sure how to handle it.

jajko 3y ago
No, you have been played. Signing a contract, any contract without previously seeing it... ask any lawyer how good of an idea is that. Its doesnt matter what mumbo jumbo they come up with, if you cave to peer pressure then accept the risks. Or vote with your wallet.
- ncallaway 3y ago
  I didn’t sign a contract without seeing it. I didn’t sign a contract with the homeowners insurance. The bank contracted with the homeowners insurance. How could I have signed a contract without seeing it? I wouldn’t have anything to sign! But none of that was my point. My point was—if asking to see the agreement was this far outside the norm, then how many people are actually confronted with the paperwork? My guess, based on my anecdotal experience, is not many.
radlad 3y ago
You are entitled to find your own home insurance, you do not have to use the bank's choice.
- callalex 3y ago
  Is that really an option when there are another dozen people bidding on the house though? (I haven’t been through the home buying process yet)
  - radlad 3y ago
    Having bought a home, I would expect so (and we did.) You're not submitting home insurance to the seller. This happens after your offer is accepted, and you're working with the bank and title company at this point.
  - ncallaway 3y ago
    I’ve been through the process once, so I’m certainly not an expert. My guess is that it probably would have been possible. At that point, we’re already under contract (which means our offer has been accepted), and finalizing the loan and home owner’s insurance was part of closing. The reason I didn’t dig into it too much at the time is I figured that the bank was probably a more sophisticated purchaser than I would have been, especially given the time pressure of needing to make a (reasonably) quick decision. So I decided that, despite my immense annoyance and not being able to see the homeowners insurance agreement before the closing was complete, that I’d accept the bank’s choice, and use my first year of homeownership to learn the contract and decide if I wanted to change carriers.

jajko 3y ago

No, you have been played. Signing a contract, any contract without previously seeing it... ask any lawyer how good of an idea is that. Its doesnt matter what mumbo jumbo they come up with, if you cave to peer pressure then accept the risks. Or vote with your wallet.

ncallaway 3y ago
I didn’t sign a contract without seeing it. I didn’t sign a contract with the homeowners insurance. The bank contracted with the homeowners insurance. How could I have signed a contract without seeing it? I wouldn’t have anything to sign! But none of that was my point. My point was—if asking to see the agreement was this far outside the norm, then how many people are actually confronted with the paperwork? My guess, based on my anecdotal experience, is not many.

radlad 3y ago

You are entitled to find your own home insurance, you do not have to use the bank's choice.

callalex 3y ago
Is that really an option when there are another dozen people bidding on the house though? (I haven’t been through the home buying process yet)
- radlad 3y ago
  Having bought a home, I would expect so (and we did.) You're not submitting home insurance to the seller. This happens after your offer is accepted, and you're working with the bank and title company at this point.
- ncallaway 3y ago
  I’ve been through the process once, so I’m certainly not an expert. My guess is that it probably would have been possible. At that point, we’re already under contract (which means our offer has been accepted), and finalizing the loan and home owner’s insurance was part of closing. The reason I didn’t dig into it too much at the time is I figured that the bank was probably a more sophisticated purchaser than I would have been, especially given the time pressure of needing to make a (reasonably) quick decision. So I decided that, despite my immense annoyance and not being able to see the homeowners insurance agreement before the closing was complete, that I’d accept the bank’s choice, and use my first year of homeownership to learn the contract and decide if I wanted to change carriers.