JPiper - Insurance Questions Answered?? - Posted by Carmen

Posted by Bud Branstetter on May 26, 1999 at 22:09:17:

I’m not sure what the question originally was. My commercial insurer allows me to put a fire policy on properties where I hold the mortgage. The ones in the land trusts I add the land trust as the additional insured. On the subject to deals I have the original owner as an additional insured to keep the mortgage company happy and able to cross reference the property.

JPiper - Insurance Questions Answered?? - Posted by Carmen

Posted by Carmen on May 26, 1999 at 08:18:23:

I was following a thread where you asked about blanket insurance policies for various properties and how to avoid having to “show your hand” to every lender (and others) by listing all the properties on the policy.

Did you get any answers? I’m very interested, as I’m going on my third property, and have a blanket policy which really does save a lot of money - and allows me to pay monthly, rather than at closing each time I purchase a property.

Please share if you did get responses, or let’s see if someone responds to this one.

Thanks! Carmen

Re: JPiper - Insurance Questions Answered?? - Posted by JPiper

Posted by JPiper on May 26, 1999 at 19:41:50:

Sorry…I got no answers. My question was really geared more from the standpoint of using a land trust and what the implications of that might be. I think you have to look at the type of transactions you’re doing and how you’re holding title. If most of your transactions are subject to transactions I don’t think I would use a blanket policy. If your transactions are deals where YOU get the loan, then I probably would. So as usual…it depends. In my opinion a good insurance broker is indispensable in helping with this decision. I still haven’t made my mind up yet.


Re: JPiper - Insurance Questions Answered?? - Posted by Bill Gatten

Posted by Bill Gatten on May 27, 1999 at 15:38:12:

Hoo Ha! A querry with the term “land trust” in it and I didn’t answer? 'Must’a been while I and Brad Crouch where out chasing woodchucks at the singles bars, or something.

In our program, the simplicity is that the mortgagor need only retain the insurance (and property tax) in his own name (while the co-beneficiary pays it as a part of the monthly triple net lease payment), and the trust and all of its beneficiaries are automatically covered.