H.O. Insurance on subject 2's

Quick question. Once I acquire a property ‘subject to’ from a seller what is the process for switching Homeowner’s Insurance? I have heard that some people keep the policy in the seller’s name and add themselves(the investor) as ‘additional insured’ by using a power of attorney. Another way I heard is to tell the insurance company that I am the property manager of the home and that I want the insurance switched to a ‘landlord policy’.

I am confused which is correct. If I did it the first way, I will only be ‘addtional insured’ for a short while and then the tenant/buyer will have to somehow get on the policy. If anyone knows sequentially how to do this I would greatly appreciate your knowledge. Thank you!


Howdy Sonriffic:

Either way is fine. There is no right and wrong. You can also put property in a trust or C Corp or LLC and then have insurance put in that name as well.