What is Home Closing Insurance?
If you are buying or selling your home, you are at financial risk if your transaction does not close on the day it is supposed to. RESRx Home Closing Insurance will pay for many of the irrecoverable expenses that you may incur as a result of the delay (or failure) of the transaction.
Will the policy pay for any reason if the transaction is delayed or fails?
No. With all insurance products there are Limitations and Exclusions. However, one of the main premises of coverage is that the reason for the delay or failure has to be as a result of events beyond your control. We suggest reading the policy for full details.
Are there any other important restrictions in the policy?
Some of the more frequently asked restrictions include:
Private sales transactions without the involvement of a real estate professional or lawyer are not covered
A reduction in the value of a property as a result of the delay or failure is not covered
The policy excludes any delays or failure as a result of an issue that was known or should have been known when the policy was purchased
How much coverage is included?
Home Closing Insurance will pay up to $15,000 or 180 days of delay.
What are some examples of why a transaction would be delayed or fail altogether?
There are many reasons why transactions have been delayed or have failed. We suggest you review our claims examples to get a better sense of the reasons and what kinds of expenses are paid.
The owner of a property passes away and the property goes into “The Estate Of”
A fire (or another type of loss) occurs and the property is unfit for habitation
Divorce or Separation occurs and the sale is blocked
A person buying or selling loses their job which causes financing to collapse
A buyer or seller withdraws at the last minute
What kind of Extra Expenses would I encounter if a sale failed to take place or is delayed?
If you are selling your property:
Ongoing property taxes, hydro, gas & other utilities, insurance, water and waste expenses
Extra legal expenses and fees
Bridge financing costs and mortgage interest costs
If you are buying a property:
Extra moving costs and storage fees
Hotel and transportation costs
Additional legal fees
Is there a deductible?
Yes – The policy deductible is $300
How do I make a claim?
Once you are sure that the transaction will be delayed, you can initiate a claim by calling 1-877-744-2301. Covered expenses will start to be calculated as of the closing date your transaction was supposed to close.
Who is Ogilvy Insurance?
Ogilvy Insurance is the Insurance Broker behind the RESRx brand. For more information please visit www.ogilvy.ca
Disclaimer- This represents a summary of Home Closing Insurance. Please refer to a policy for a complete description of coverage and conditions.