Re: Buying on CFD Insurance Question - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 28, 2002 at 10:28:00:
I read that you missed the convention this year, too. Hopefully next year we’ll get to touch bases again.
As for cancelling the insurance policy currently being paid-for out of loan escrow (the seller’s policy), why would I cancel that policy? Since legal title hasn’t passed, the seller’s policy should still be valid and binding. BTW, there’s little equity in this deal (the sellers bought the place less than a year ago), so the amount of coverage of the original policy is OK.
Also, in my CFD (Bronchick’s with some changes), the seller agrees to give all insurance claim payouts to me, as buyer.
I’m thinking the only reason to replace the insurance is to make sure I’m a loss payee, but the sellers have already agreed to change the policy to “interests of buyer and seller as they may appear.”
Anything I’m not considering, JB?
Yes, an umbrella liability policy is something I need to get. Since I’m now going into full-time investing, it’s on my to do list, along with about a million other things. It will have to be moved to the top, now.
I appreciate your feedback (especially since nobody else wanted to answer). (smile)