INSURANCE CONTINGENCY Clause Samples
The Insurance Contingency clause establishes that the completion or effectiveness of a contract is dependent on the buyer or another party obtaining specific insurance coverage. In practice, this means that the transaction will not proceed unless the required insurance—such as property, liability, or title insurance—is secured within a set timeframe or under certain conditions. This clause protects parties by ensuring that adequate insurance is in place before finalizing the agreement, thereby mitigating risk and providing financial security in case of unforeseen events.
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INSURANCE CONTINGENCY. The BUYER’s obligations hereunder are contingent upon the BUYER’s satisfaction with the insurability of the property. BUYER should consult with their lender and insurance carrier to determine the insurance coverage required for the Property and the premiums for such insurance coverage. BUYER’s mortgage lender may require the purchase of additional flood insurance if they determine the property is located in Special Flood Hazard Area (SFHA). Past coverage or premiums paid by the SELLER are not an indication of the BUYERs insurance obligations for the property. The requirements and cost of homeowner and flood insurance include, but are not limited to, property attributes, risk ratings, applicant’s credit rating and policy limits and must be individually determined by the insurance carrier. Should the BUYER be unable to obtain a satisfactory insurance binder despite diligent efforts, BUYER may cancel this Agreement by submitting a written cancellation notice and a copy of proof of insurance application to the Listing Broker or Seller’s Attorney, no later than 5:00 p.m. on the Insurance Contingency Date indicated in paragraph 5, whereupon all obligations of the parties under this Agreement shall cease and BUYER’s deposits shall be promptly returned in full. BUYER’s failure to (a) give such written notice or (b) make a good faith insurance application by the Insurance Application Date shall be a waiver of the BUYER’s right to cancel under this Paragraph.
INSURANCE CONTINGENCY. Buyer will provide Seller with Certificate(s) of Insurance with respect to insurance policies covering the Property, effective the date of closing in such amounts and with insurers reasonably satisfactory to Seller, within ten (10) business days of acceptance.
INSURANCE CONTINGENCY. If Sava and/or its parent receive proceeds