Posted by Jimbob on December 08, 1998 at 09:59:35:
One reason I can think of is to secure your interest in the property for instance, If you lease/option the property for $100,000, and the actual market value is $130,000, and the owners policy is for $100,000, and the house burns down, where does that leave you?
Whether or not you need to be strictly on his policy is a little grey to me, personally, I wouldn’t let someone else on my insurance policy. Usually I take out my own policy for over and above what the current owners policy is, it’s kind of like renters insurance only it’s on the building. You need to protect your equity interest, especially if you’re re-habbing a property to dramatically increase the value.