- Category: Answers to Your Questions
- Published: Saturday, 01 March 2014 12:18
- Written by Doug Hartley
- Hits: 1215
If the agent has been given as much data about the home being purchased as possible, the evaluation of the home and the rating of the policy should be fairly accurate. Sometimes the lender or the insurer find things that were missed during the quoting and binding process and the price might be adjusted. That's why we usually refer to the premium that is collected at closing as the 'estimated' premium. The margin of error depends on how detailed information the agent used to quote the policy. Sometimes after the binder is issued the insurer decides they don't want to insure the property and will decline the policy at the end of the binding period. You or the agent will seek another insurance company and policy and the price might be different that what was originally quote.