Ask the REALTOR: What’s the “Homeowners’ Insurance Addendum”?

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Ask the REALTOR® is a regular video series in which I answer your most commonly-asked real estate questions, with a new Q&A posting every week. If YOU have a real estate question for me, drop me a note here.

This week’s question: What’s the “Homeowners’ Insurance Addendum”? Here’s the answer in this brief video, and don’t miss the transcript below.

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Hi, this is Cari McGee with Keller Williams Real Estate. Welcome to this week’s episode of “Ask the Realtor.” Every week I answer questions from buyers and sellers — and pretty much from everyone in between — regarding real estate.

This week’s question is:

“Cari, what’s the Homeowners’ Insurance Addendum? What does that mean?”

Well, that’s a contingency that is included in almost all purchase and sale agreements, or it’s something I make a habit of including. And what that’s all about is … as the home buyer, you’re going to get a homeowners’ insurance policy on the home that you’re purchasing. And the contingency protects you in the event that, either due to your own personal history with insurance and claims, etc., or the house’s history with insurance and claims, etc., if it becomes too prohibitively expensive to insure the property due to those things, then that’s an out for you. So, that’s what that means. That’s why you have the insurance contingency attached to every to purchase and sale agreement — or why I include it, anyway.

If you have any other questions for me regarding real estate, by all means give me a shout via any one of the methods that follow on the next screen. Thanks so much. Have a great day. Bye!

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About The Author
Cari McGee

My husband and I came to the Tri-Cities in 1994, and we thought it would be a temporary stop on our way to larger cities. He was a television sports anchor at the time, and we planned to go wherever the "next step up" took us. Twenty-plus years later, we're still here and we've loved every minute of it! We have two children now, and we've found the Tri-Cities area is a wonderful place to raise a family. It's a great place to do outdoorsy things -- I like to hike Badger Mountain or run along the river path. I also love reading ... by a cozy fire in the winter or a beautiful picture window in the summer (with the A/C on!). I've been a licensed Realtor since 2004. I earned my managing broker's license in 2016, which means I can run my own brokerage, or create a team of real estate agents and supervise them, which is exactly what I did when I formed the Cari McGee Real Estate Team in 2018! We have administrative and marketing personnel, as well as additional agents to serve you. I became a director of the Tri-Cities Association of Realtors Board of Directors in 2016, became Secretary/Treasurer of the organization, and was elected to Vice President in 2019. Want to talk about real estate? Click here to schedule a meeting with me!

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