How can I Transfer my Insurance to Purchaser ? - Posted by Michael

Posted by Jimmy on April 09, 2008 at 03:41:06:

  1. if the ownership of the house changes, your policy is no longer valid. if the ownership remains in your name, the old policies can remain in place.

  2. are you sure you are comparing apples to apples? is the new policy identical in all coverages to the old one? something here does not sound right.

How can I Transfer my Insurance to Purchaser ? - Posted by Michael

Posted by Michael on April 08, 2008 at 23:04:57:

I have an interested buyer to purchase 4 rental houses from me(I have alot of equity in each one that I need to liquidate). My current insurance policies are about $1100 a year per house.The new policy quotes are $3000 a year per house.(Katrina area - even though my houses wern’t damaged).My buyer can’t afford to purchase my houses with insurance this expensive. Is there a way that she could purchase my homes and assume my insurance policies ? Any help would be GREATLY appreciated.

How can I Transfer my Insurance to Purchaser ? - Posted by Bill H

Posted by Bill H on April 09, 2008 at 19:22:19:

You are now talking about the main reason things are so slow and expensive in the Katrina area.

We left there beause of that…NONE…of the major insurance agencies will insure wind damage.

If you are being quoted only $3000…you got a good quote probably from an out of state insurance agency.

We recently thought we wanted to move back and do some development, etc…had a deal lined up for a home only costing about $245,000…found out wind insurance would be a minimum of about $6,000 per year plus the regular liability insurance.

We Passed and move back to MONTANA…BIG SKY Country!

Good Luck,
Bill H

Another idea - Posted by Rich-CA

Posted by Rich-CA on April 09, 2008 at 17:55:44:

Can you just change the name on the insurance?

How about this: create an LLC for the properties. Change the insurance into the LLC name (I have done this with no problems). Sell the LLC along with the properties.

Buyer sounds dangerously weak - Posted by John Merchant

Posted by John Merchant on April 09, 2008 at 11:55:59:

I’d keep looking for good buyer as if this one can’t even ante up ins. premiums, any kind of emergency would surely overwhelm him and you might be looking at a defaulting buyer, foreclosure, etc.

Don’t sell on terms unless your buyer can afford all PITI and prove to you upfront he can do so.