Closed on a probate SFR in Tucson last March and the final insurance bill from the estate nearly killed my margin.

Policy had lapsed four months before the owner died, so the PR got a new one issued on a vacant dwelling. Vacant dwelling rider added 60% to the premium and the estate paid it from proceeds, which meant it came off my net at close because we had negotiated a net-to-heirs number. I didn't catch that the policy renewal date landed inside our escrow window. Estate renewed again at close, so I ate a double premium, about $1,840 total, on a deal where I had $9k penciled in. Still made money but I was at $7,200 when I thought I'd be at $9k and that's a different conversation with my partner. Lesson from my end is that vacant dwelling policies on probate properties need to be part of the preliminary HUD review, not a surprise at signing.