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Joseph44

Insurance needed for l/o

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Afternoon Everyone,

It's been awhile. Hope everyone is doing great. My question on a lease option, (sandwhich or otherwise):

Does anybody get insurance on your l/o investment for the term of the lease? Ten/Buyer is advised to purchase renter insurance, but what exactly protects the investor? Thank you, and have a great weekend!

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If you aren't remaining in the deal long term, say in a Cooperative Assignment, there isn't any need for you to have insurance. If you are in the deal for the long haul, as in a sandwich lease, you can protect your position by being named an additional insured on the homeowner's policy.

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Thanks Michael C,

Haven't talked to you for quite sometime. How would I go about asking the seller to add me to his home owners policy? Is this a rider on his policy or what? Do you have any experiences with this issue that you might like to share? Also, how do you pop this request if you are getting good terms? Thanks Michael and have a great wk/nd!!!

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Approach the homeowner in a matter of fact way. Don't make it seem like you are asking for something so outrageous or unusual. Explain you are protecting your position in the highly unlikely event that something catastrophic might occur to the property. The homeowner would then need to contact his insurer to have your name or entity added to the policy as an additional insured.

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