Homeowner's Insurance (again)

General Real Estate Investing
1

I know this topic has been discussed a few times and I have searched the archives looking for answers. I’m just looking for additional and up-to-date info.

How do some of you experienced sub2 investors deal with the homeowner’s insurance? I know that some investors just get another policy and keep the sellers in place but there are some people that say that this could cause problems, especially if you don’t alert the insurance agent that there is another policy and that the mortgage is in someone else’s name.
Is the agent obligated to tell the Lender when there is an application for a new policy?

Also, I know that some investors get the seller to change their policy to a non-owner occupied and then the buyer gets personal property insurance. I’ve heard negative things about this also.

So, which is better?

Thanks,
Future Wannabe Sub2 Guru

2

:biggrin

3

trustpro,

Are you ready to back your statement up?

Insurance is always a problem in a sub 2. The mortgage is NOT in someone else’s name, the title is. You have a seller who no longer owns the home. His insurance company is not going to continue coverage.

If you want to tell everyone how great trusts are then stick to an area you know about not conjecture on what you heard somewhere does not cut it. All your comments do not have to start out, It Violates, I Heard Somewhere or Insurance Is Always A Problem.

alfasentari, trustpro is wrong…

John $Cash$ Locke

4

Not sure what happened to the middle post on the thread but would like to know the answer to the insurance question myself.