Insurance questions - Posted by Brian

Posted by Jimmy on April 09, 2009 at 07:41:19:

  1. key man. we put it in place when a business has a really valuable person, the death of whom would seriously disrupt the biz. these can be compamy-owned policies, or cross-owned by one or more owners. if you’re just starting out, forget about this kind if coverage.

  2. casualty insurance. your lender will require you to have this. no different than homeowners or car insurance.

  3. business interruption insurance. I have no experience with this. I doubt these will cover normal vacancies, unless there was a fire/flood/or some other disaster that rendered all or part of the property uninhabitable.

  4. collateralized lien. your home mortgage is one. so is your car loan. a lien is a debt. collateral is an asset that you pledge as security for that debt. if you default on a collaterlaized lien, the lender can come after you, or can seize the asset. its called a foreclosure when we are talking about real estate. and a repossession (a repo) whe wew’re talking about cars.

Insurance questions - Posted by Brian

Posted by Brian on March 10, 2009 at 18:21:22:

Ok I know my questions may seem basic but that’s because I am new and
looking to educate myself. Can someone explain to me how I’d go about
getting the following insurance policies on a property…

  1. Key man life insurance - In case I die, my future partners will have some
  2. Casualty Insurance - In case the building burns down I’ll have money given
    to me to repair.
  3. Business income loss insurance - In case something happens to the
    building and 20-30% of the tenants move out.

And can someone explain to me what a collateralized lien is? Again, I’m in
my learning stage and I’d appreciate any advice. Thanks!