Hazard Insurance for Cash Sales
The buyer should obtain hazard insurance on the property prior to closing. If you do not obtain a written policy with an insurance company prior to closing and there is a loss afterwards, you will be out the value of the purchase price less the value of the lot.
As an example, let us assume a purchase price of $100,000.00 and a lot value of $20,000.00. If there is a total loss after closing without insurance, the buyer would realize a loss of $80,000.00. Please get the insurance in advance of the closing.