J.D. 0 Report post Posted October 16, 2007 Hello Again, How is the insurance handled when leasing from the original owner and sub leasing to a tenant buyer? Do you get a policy like your doing property management? Is this the same as when a sub2 is done? Thanks Guys. ps MC did you ever read my last post in the NO MONEY..........NO MONEY post in "everything else"? Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted October 16, 2007 On a SLO you're not taking title so the insurance is for the protection of the seller. However, you can basically insure anything you wish or become a beneficiary or hold your own policy. A "landlord's policy" should be put in place to take care of fire and dwelling. (Most insurance companies will not pay on a homeowner's policy if they found out it's rented) Then a "tenant's" policy is put in place for the contents and liability of the tenant. It's always a good idea to have the tenant get the highest amount of liability insurance so if someone slips and falls it can used instead of falling on the homeowner. And finally, a home warranty is a good idea if you're trying to stay away from being a landlord. When you give the tenant/buyer an option to purchase it's normal practice they take care of the home. This allows them to call the "insurance company" when there's a problem instead of you. And finally, if there's a tremendous amount of equity in the property you could always make sure the homeowner has insurance at all times.So far the first two have been the only points I've concerned myself with.Hope that helps,Adam Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 16, 2007 . . . ps MC did you ever read my last post in the NO MONEY..........NO MONEY post in "everything else"?I don't think I have. Do you have a link, because I can't find it. Share this post Link to post Share on other sites
dan332 0 Report post Posted October 17, 2007 A "landlord's policy" should be put in place to take care of fire and dwelling. (Most insurance companies will not pay on a homeowner's policy if they found out it's rented) Adam, I assume this landlords policy would also be needed in a CA, correct? Thanks- Dan Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted October 17, 2007 Adam, I assume this landlords policy would also be needed in a CA, correct? Yes.Adam Share this post Link to post Share on other sites
spleano 0 Report post Posted October 17, 2007 Does the homeowner pay for this extra insurance or do you get a seperate "landlord's" policy of your own? Surely you don't just tell the seller, "...and by the way you'll have to pay more insurance because now your a landlord." Help out the newbie... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 18, 2007 Does the homeowner pay for this extra insurance or do you get a seperate "landlord's" policy of your own? Surely you don't just tell the seller, "...and by the way you'll have to pay more insurance because now your a landlord." Help out the newbie... Dino, actually a landlord's policy will result in a slight reduction for the homeowner, because there are no possessions to be covered. It insures the dwelling against the usual damages caused by fire, drunks driving their pickup into your bedroom, slip and sue lawsuits, etc. But the possessions in the house are the tenant's, and they would need to purchase their own insurance under a renter's policy. Share this post Link to post Share on other sites
J.D. 0 Report post Posted October 18, 2007 Thanks very much for all your input Share this post Link to post Share on other sites
