Home Owners Insurance on AFS

[toy]

OK... so have my first AFS deal... actually have 4 right now... finally!

I think the last thing that I need help with is how to handle the homeowners insurance policy?

Do they change it to a rental policy? Do they leave it how it is and add me on there in some way?

Your insight in to this matter is greatly appreciated!!

Also thanks to all that have posted and given me responses to my past questions!

 

[Dan_Eisenhauer]

Ask your insurance agent.

 

[Dan_Eisenhauer]

Ask your insurance agent.

I don`t understand is you are the purchaser of the property or the seller who is carrying the financing. If you are the purchaser, you should insure your interest. If you are the seller, the property is still yours, and you need to insure it as if you were renting the place.

Just my uneducated opinion.

 

[GaryMcGowan]

Talk to HUB Ins. as I know they have done a few of these.

 

[toy]

QUOTE (Dan_Eisenhauer @ Sep 5 2010, 11:10 AM) Ask your insurance agent.

I don`t understand is you are the purchaser of the property or the seller who is carrying the financing. If you are the purchaser, you should insure your interest. If you are the seller, the property is still yours, and you need to insure it as if you were renting the place.

Just my uneducated opinion.


Sorry I was not clear... I am the buyer. I understand that I have to insure my interest but since they still have their mortgage in place and are still on title... it is my understanding that they have to still have their homeowners policy and that I just get added to it in some fashion. That is the part I am trying to figure out, in what way do they add me to their policy so they are still covered and i am covered?

Hope this makes sense... if not I`m sorry

 

[toy]

QUOTE (GaryMcGowan @ Sep 5 2010, 05:46 PM) Talk to HUB Ins. as I know they have done a few of these.


Hi Gary,

Thanks for the response... do you have an agents name or number that could help me with this or should I just call HUB in general?

Thanks!

 

[Hagen]

I spoke with Rosanne at Park Insurance last weekend at the REIN conference about this very issue. They suggested that the buyer acquires new insurance to protect their interest, include the name of the seller on the policy, cancel the sellers insurance, and make sure the bank gets a copy of the new policy ensuring they recognise that the seller is still a named insured. The issue they see is with any potential payout, and who gets paid depending upon who has th epoicy, adn how many policies exist (if seller does not cancel their original policy). My 2 cents...

 

[AndreaW]

If you contact Phil Jarvie at HUB International 1-800-263-2383 ext 7086 he will handle it for you. Basically you get the seller to fill out HUB`s 2 page application, and I add my name to the seller`s as an insured party, loss payable still to mortgage company. I also put my name as the contact person, and I have HUB take the monthly payments out of my account. Easy peasy.

 

[GaryMcGowan]

QUOTE (AndreaW @ Sep 9 2010, 11:53 AM) If you contact Phil Jarvie at HUB International 1-800-263-2383 ext 7086 he will handle it for you. Basically you get the seller to fill out HUB`s 2 page application, and I add my name to the seller`s as an insured party, loss payable still to mortgage company. I also put my name as the contact person, and I have HUB take the monthly payments out of my account. Easy peasy.

Yes, Call Phil,
Sorry I missed your question Toy !