Buying insurance before the lender will fund a loan?

[VisionPNW]

Hi all, I am currently in the process of buying a boat and one of the things that my lender has asked for is proof of insurance. This seems straightforward, but they are also saying they are very busy and it will be 4+ weeks to fund the loan. Does this really mean that I have to pay for insurance for over a month on a boat I don't own and can't use? It's only a couple hundred dollars in the big scheme of things, but is this normal?

Thanks.

[GreenWave]

Not necessarily. Depending on the insurer of choice, you can enter into agreement to purchase insurance and have it be effective on a future date (a day or two prior to funding).

[VisionPNW]

Originally Posted by GreenWave

Not necessarily. Depending on the insurer of choice, you can enter into agreement to purchase insurance and have it be effective on a future date (a day or two prior to funding).

That's a great idea and exactly the type of solution I was looking for. Thank you.