Posted by Irwin on November 16, 1998 at 20:04:09:
As long as the named insured in the policy is the same as the owner of the real estate, there should be no problem with claims.
Due on sale again Mr Bronchick and others - Posted by Jaydee Bredenkamp
Posted by Jaydee Bredenkamp on November 16, 1998 at 13:02:17:
Hello everyone ,
I was wondering if anyone has ever put in an insurance claim under a contract for deed in a trust? Just curious to know whether it went smoothly and who would the insurance make the check out to? Is it even possible to get insurance on a property with a contract for deed ? ( I know you can amend the existing policy , but is it possible to get new insurance ) Thanks again
Re: Due on sale again Mr Bronchick and others - Posted by Bud Branstetter
Posted by Bud Branstetter on November 17, 1998 at 11:19:59:
On smaller claims($2-3K) the insurance company is likely to make the check out to the policy holder. On larger claims the check would be made out to the owner and the lien holder. If you had a contract for deed but not showing the owner occupant as the insured then the policy holder would probably have to file and have the check made out to him. One advantage of the performance mortgage would be to have the occupant/buyer shown on the policy. Another policy for the buyer could be purchased that showed him as loss payee. Probably overkill and more expensive. If you put or buy the property into the land trust the trust can be a additional or original loss payee. The contract would be for the beneficial interest. The trustee signs the contract so the property is protected.
Re: Due on sale again Mr Bronchick and others - Posted by Bronchick
Posted by Bronchick on November 16, 1998 at 21:06:37:
Who is making the claim? If the property is owned in a trust and sold on a contract for deed, then the insurance policy either names the record owner (the trust) or the owner and the contract for deed buyer (as their interests appear).
On small claims, my experience has been that the adjuster doesn’t look. If the property burned down, they would look at every inch.