We’ve run into a snag with a Subject-to. The seller’s insurance company is dropping her effective the same time we negotiated responsibility. I understand that traditionally, subject to’s use the seller’s policy. Any QUICK & WORTHY suggestions for new insurance??
Thanks so much! :-[
Great question. I am about to do my first subject 2 transaction and insurance is my main question. Do I keep theirs even though they are the insured and not me? If I get my own doesn’t that get the lender’s attention?
Actually, you may have got lucky! Tell your seller that you’ll have your insurance carrier call the him/her and set them up. Have your agent call them for the details, but also instruct your agent to put YOUR name as additional insured. He’ll insure the property under all of your names… this way you won’t have to get a second policy because you’ll be listed.
In most cases, you leave the existing policy in place and go get your own as well… but it leaves you paying for two policies. Since they dropped her right as you’re taking over you might be able to actually BE insured and not have to get a 2nd policy.
Z