🏡 When Insurance Becomes The Dealbreaker: Why That Little Deadline Deserves a Big Spotlight

Jul 7 / Tammy Deitz
“Wait… they can’t close because they can’t get insurance?”
Yes. Yes, they can’t. And now they’re looking at you.

In this market, we’re seeing deals fall apart not over inspections or appraisals—but because buyers can't secure property insurance. Some carriers are walking away from high-risk areas. Others are denying homes with roofs over 10 years old. And when you can get insurance? The premium might make your buyer question their entire budget.

This isn’t just a rural-mountain-cabin problem. It’s hitting suburbs, too—especially those with hail claims, wildfire zones, or older roofs. And here’s the real kicker:

If your buyer can’t get insurance, they can’t get the loan. And if they wait too long to figure that out? They may have to forfeit their Earnest Money.

Yep. It’s not a joke (although it might make you cry a little inside).
🤯 But We Have an Insurance Termination Deadline… Don’t We?
We do. It’s right there in Section 10.5.
You know—the one that gets skimmed faster than the Apple Terms & Conditions and buried between “Appraisal Deadline” and “Closing Date.”

That deadline matters more than ever. And here’s why:
If your buyer doesn’t raise the red flag about insurance until after that date, they may have to forfeit their Earnest Money.
If the policy they get back doesn’t meet loan conditions (because it’s incomplete, inadequate, or $5,000/year more than they expected), the lender won’t fund.
You can’t fall back on a Loan Termination Notice if the real issue is unaffordable insurance. That’s not loan denial—it’s buyer remorse, and it won’t fly.

🔍 Your New Job as a Buyer’s Agent: Ask Early. Ask Often.
Before that Property Insurance Termination Deadline comes and goes, ask your buyer:
“Have you talked to your insurance agent yet?”
“Did you get a quote in writing—and does your lender approve it?”
“Is the roof older than 10 years?”
“Is the property in a fire zone or near open space?”
“Should we extend that deadline—just to be safe?”

If you’re not sure… extend the deadline!
You won’t regret having a little breathing room. But you will regret watching your buyer’s face when they realize they can’t close, and they just lost five grand.

đź›  Bottom Line: Protect Your Client. Protect the Deal.
The insurance conversation isn’t optional anymore. It’s a critical checkpoint.
Be the agent who brings it up—before the deadline, before the panic, before the deal dies.

Want a Copy of Our Insurance CheckList for Your Buyer?