insurance question for Mr. Tew... - Posted by Debra-SC

Posted by Ernest Tew on December 01, 2000 at 06:24:58:

Hi Debra:
Although my daughter handles all our insurance (I find it very boring), I will try to answer your questions.

Insurance should be the responsibility of your buyer or lessee. You should make sure that they obtain insurance coverage that is satisfactory to you. The person you acquire the home from will no doubt want to cancel their policy, unless you agree to take over the payments. If you are satisfied with the coverage and the costs are reasonable (about $300 a year), that would be the easiest way to go.

As the seller or lessor, you will want the coverage to be at least equal to your equity or the amount you are financing. The buyer or lessee may want to cover their total cost plus furnishings.

Whether or not you want to require liability coverage or whether your buyer will want to have it, is a personal choice. If title to the home is still in the name of your seller/lessor, or if you put it in a corporation or other entity with limited liability, you will have a lot less risk.

You may need to explain to the insurance agent what you are doing and why you need your name, the title holder’s name, the occupant’s name, and the name of any company that holds financing all on the policy “as their interests may appear.”

insurance question for Mr. Tew… - Posted by Debra-SC

Posted by Debra-SC on November 30, 2000 at 20:29:45:

Finally closed a deal with a seller anxious to get rid of a 16 x 70, 1995 Fleetwood in very good condition. The monthly payments of $260 include insurance. Question - since I am now lease/optioning this home from the seller with her insurance in place, does my tenant/buyer get his own insurance, including liability insur., and, will the seller’s insurance cover liability of the tenant/buyer, i.e. someone falls down the steps and breaks an arm? Can the tenant/buyer get insurance in his name on the home for fire, personal liab. etc.? The seller didn’t think her policy covered pers. liab. and was concerned she might get sued if someone had a fall. I didn’t know what to tell her, so we ended up putting an addendum (to satisfy her) that she would not be liable for the personal injury of a tenant (me). Hope I didn’t confuse you with this.

Thanks in advance.