When it comes to real estate contracts, every detail matters. One important section to pay attention to is paragraph 12 of the TREC One to Four Family Residential Contract. This section covers information related to property insurance, and it`s crucial to make sure all the necessary details are included.

At a high level, paragraph 12 requires the seller to maintain property insurance coverage until the closing date. The coverage should be at least equal to the sales price of the property, and it should cover any damage or loss that may occur between the contract execution and closing.

To ensure that the insurance coverage meets these requirements, the seller is required to provide the buyer with an insurance policy declaration page or other evidence of coverage. This document should include the name and contact information of the insurance company, the policy number, and the coverage amounts.

If the property is located in an area prone to natural disasters such as hurricanes or floods, additional insurance may be required. In this case, the seller must provide evidence of any additional insurance coverage, along with a disclosure of any previous damage to the property caused by such disasters.

It`s important to note that if damage occurs to the property after the contract is executed but before closing, the seller is responsible for covering any repairs necessary to bring the property back to its original condition. This means that it`s crucial to have the proper insurance coverage in place to avoid any unexpected expenses.

In summary, paragraph 12 of the TREC One to Four Family Residential Contract requires the seller to maintain property insurance coverage until closing, and to provide evidence of coverage to the buyer. It`s important to make sure that the coverage meets the necessary requirements, especially if the property is located in an area prone to natural disasters. By paying attention to these details, both the buyer and seller can have peace of mind knowing that the property is protected.