Posted by Bob In Indy on May 26, 2008 at 11:14:11:
Quite simply, you need a landlord policy, since most sellers had an owner-occupant policy.
A landlord policy won’t insure the contents but will insure the structure.
The original lender should be named as the primary insured and assuming that you have the seller’s POA, you can also include them and either your company or your trustee (if you took possession in a land trust) as an additional insured.
buying “subject to” and homeowners ins - Posted by DM
Posted by DM on May 26, 2008 at 10:36:07:
Hello all,
Later this week I’m closing on a rental (single family) and am not sure how to handle the homeowners insurance aspect. I remember hearing about a situation that turned out badly for another investor a while back when the property burned down and the insurance company wouldn’t pay because the home was no longer titled to the same owner who originally took out the insurance even though the payments had been kept current.
If it makes any difference in knowing more details, all payments on this property are current, the sale price is about $40k under current market value and there’s a solid renter in the property. The property taxes and insurance are escrowed.
Anyone out there want to share what their experience has been on this issue or have any words of wisdom for me?
Thanks a bunch - in advance!
post-wannabe wholesaler