I am buying a fixer and the purchase price reflects it. The price is way below the market and is probably equivalent to what it would cost to buy the land alone. Obviously, the lender is requiring a home insurance since they need to protect their investment.

My question is this: If the insurance company does not come out and look at the property, how do they know what I'm telling them is true? Meaning, if I told them that all electrical is grounded, would they come out to check? My intention is to purchase the property and knock it down. I just want to purchase the property and start rebuilding. But in order to purchase, I need a home insurance which is difficult to get with the fixer upper. Any suggestions?

I rather not get a construction loan as those usually come with deadlines.

I have had 2 different home insurance companies and no one ever inspected my house. Of course, they have also never asked me if the electrical was grounded. They asked me stuff like if I had tile floors, a rottweiler, how close the fire department was. I can't imagine an insurer insuring a home that you are going to knock down, which I guess is why you are asking. Strange situation. I hope someone has an alternative solution for you. But I don't think the insurer would ever know you knocked the house down unless you told them or filed a claim.