Frank, ....You may not have explained exactly what is causing that increase from $600 to $2200 per year. Was there a local flooding episode, a broad area of forest fires, some subsidence from old coal mining in your area ? We have had substantial forest fire effects upon insurance for some homeowners. Most of the intensity of those ramifications were for pending transactions awaiting the announced 100% control of the fire and an extinquishing of all front lines of advance. I just finished a report on property very close to that action. The effect on values from July to now is quite amazing. Why ?...because people do not want to re-experience those chaotic weeks of being out-of-house and not knowing how you fared...and for sure not getting in that same situation again. My subject neighborhood was 2 and 1/2 mile from the line, evacuated, but not directly burned. What I asked about in calling on all 5 sales and the one listing was about insurability at time of sale. The reply was that folks "got" the coverage to complete the purchase...and the 5 sales were all conventionally funded. I expected perhaps more cash purchases in lieu of insurance, but they got the policy written. As for costing 3 and 2/3's as much, I do not recall hearing comments like that, but the comments from agents were definitely that "we did not expect to list so long or drop our prices so much". Low demand, ample supply, prices come down. The cause of the increased insurance in your case may affect the monies that are part of the "down" payment to get the house, and to re-coup that "loss" a buyer just may demand the home price come down by $1,600. Maybe, they get the seller to pay that first insurance premium as the needed concession. If so, I guess it could be legitimately recorded as such.