Did you know when you buy a new property, you can still be protected from losses that occurred prior to your purchase date? While most assume that the condition of the property is simply what they’re agreeing to, an assignment document can be used to allow you to be indemnified and recover from a loss that occurred previously. This is important particularly if a claim was never filed and the property not repaired.
The resource form attached in this article can be used by any new property owner – whether hotel, gas station, or commercial / residential property buyers. Buyers should have sellers sign this form on ALL new properties that they buy. This allows the buyer to file an insurance claim against the seller’s property even after the sale of the property. Even if a property inspection is completed as part of the mortgage checklist, this allows the buyer to go back and file a claim on the old owner’s policy if damage is found after the fact.
Why does bringing this form to the table matter?
1) The buyer is protected to file and own the rights to the proceeds, and therefore the repair funds, should something be found after the contract is complete.
2) The buyer has negotiating power to make the current owner and seller drop by price by a significant amount, up to the value of the potential claim.
Especially when the inspection is canceled, and properties are bought “as-is”, this can give the seller the opportunity to ensure the property can be brought to a pre-damage condition. Adding this to your standard purchase agreement is key to protecting yourself as a buyer. And most sellers won’t reject signing as the carrier won’t be able to raise their premiums or drop the selling property from coverage. It’s a win-win for all involved and can only add value when moving forward in investing in a new commercial property or home.
Contact Premier Claims today for a FREE inspection, policy review, or tips on how you can be ready for anything life – or the weather – may throw your way.