hey folks,
i just bought a sweet foreclosure yesterday, and during my due diligence phase prior to the purchase the insurance company that currently insures these townhomes said it could put me on there as an additionally insured (i bought one of the 16 townhomes at the sale) party. now i own the sheriff’s sale deed, and have registered the property at the register of deeds. i spoke with this insurance company for 45 minutes today while they told me i can’t be an additionally insured entity on the policy; number one, because i’m not a bank (bank notes can be on there), number 2, my name’s not on title (occupant has a 2 to 6 month redemption period). they said it’d be no problem once i took a note out on the property…duh, after the redemption period. i need coverage during the interim period, which is 6 months unless they waive their redemptive rights in which case they have 60 days. we finally agreed that my attorney will talk with them tomorrow. MY QUESTION IS HAS ANYONE HAD THIS PROBLEM BEFORE AND CAN YOU GIVE ME ANY HEADS-UP OR PEARLS OF WISDOM BEFORE WE GO INTO DISCUSSIONS TOMORROW. i realize it’s a bit of a unique situation being it’s a townhome but i don’t see why i can’t get my tail covered (in the event the place burns down) with a clearly demonstrated interest in the property. thanks for all your input and sorry it’s so long.

are you guys telling me no one on this site has any input or experience with my scenario???

Speak with an insurance broker, not just a single company.

Hello Big E,
What you have is a situation where you want to pass on “additional insured” status. Go to Ins co. B and open a new policy. Pay the premium at signing and walk out covered. Do not discuss "sheriffs deed. Not to be sneaky , but it is info not required for the insurance co to cover you. Give them a reason and they will disqualify you. You are the owner, insure it as so.
It’s worth the premium. If the additional insured doesn’t work on sub2’s also…get your own insurance.

i’ll give it a try but i tried that at first and they found out it was a townhome and already under the umbrella coverage of the HOA. thanks for some input at least.

HOA insurance is good, but usually is for the exterior only. Check it out, you may need interior insurance seperately…D