give it or not? - Posted by shelly

Posted by JT-IN on May 12, 2006 at 12:52:29:


When I am talking about contacting your Ins agent… I am not necessarily speaking of now re-writing the policy. That may be something to do aftter the potential dust settles with THIS claim…

What I referring to is to let the Agent handle contacting your party involved in the Land contract. Let the agent handle the ins speak, all the technical aspects of who is insured for what, and why. Otherwise, you simply stand the risk of giving the other party more amunition from which to end up filing either an ins claim against, or a legal complaint. the Ins professional should attempt to diffuse the situation for you…

Once the flames clear on this problem, then have your agent address the best way to set this up. If he/she is competent, they can advise you correctly from there.

Just the way that I view things…


give it or not? - Posted by shelly

Posted by shelly on May 11, 2006 at 18:29:49:

i have sold a property using a land contract.The tenant/buyer pays for the hazard ins which i have in my name that protects the home.he wants me to make a claim under my ins for damage he incured.I have relayed i dont have personal prop ins only he is requesting/demanding a copy of the ins policy.what should i do?i feel thats personal?i dont remember getting a copy of MIP ins policy.I wouldnt even know who covers it but i know i paid for it likened to the same?thanks for your help.i dont see how my policy would be his concern?he says hes paying for it and demands a copy?it wasnt written in the deed he would get a copy.???

Missing parts of a puzzle - Posted by JT-IN

Posted by JT-IN on May 11, 2006 at 23:37:16:


Some of the things that should have been covered in the contract language, apparently were not. In theory, which I realize is not what you are NOW dealing with, these issues should be identified in the Land Installment Contract, (aka Land Contract, as well as a Contract for Deed).

What I would now recommend that you do is to call your insurance person… Explain the facts to them… the fact that you have a Land Contract on the property… and what the occupant is claiming has happened. Do not go into the fact that he wants a copy of the contract, or any other extrainious details… just the fact, Maam… (that statement is likely way before your time, but it was Sgt Joe Friday, a TV detective, who would repeatedly state that, many years ago… Just the facts, Maam).

A couple of things here… Does your ins co know that you have sold the property on a Land Contr…? If not, this could be a problem for you… If you have the property insured as if you live in it yourself, which is a common problem or mistake many newbies make, since that type of ins is cheaper… but it doesn’t cover what is at risk of loss, and that is what ins is all about. Then let your isn agent handle things from there…

What should be covered in your LC is how the ins works… How it should work is this… Your Vendee in the LC, which is the technical name of guy living in the house and buying on LC, should have the house insured with his own policy, for the structure and contents if he chooses. This policy should name you as an “Additional Insured”, just the way that Banks are named when they hold a Mtg on a property. He pays the premium and all costs with the policy, and if he doesn’t, since you an Add Insured, then they will send you a notice that premiums have not been paid, or that coverage is going to lapse, then you can properly protect yourself from there…

You then mentioned MIP… MIP is Mtg Ins Premium, which is FHA’s verson of PMI, or private mtg ins. This insures the lender, if and only if the Mortgagor, or Borrower defaults on the loan. Nothing more, nothing less. That is all that MIP covers.

Back to the claim at hand… If behoves you to get this settled, as you are potentially at risk here of some Judge stating that you should have done such and such… Once you get beyond this claim issue, then re-write the isurance portion of the deal, with some form of addendum and set up the ins the way it should have been, from day one… Now it is all about getting the dust settled on this potential claim. It doesn’t pay to right in theory, if some judge sides with the other guy. Do what you need to do to get it settled… Don’t be stuck on arguing about principle here, as you can’t eat principle.


Re: give it or not? - Posted by Kevin - WA

Posted by Kevin - WA on May 11, 2006 at 20:03:11:

My thought would be that your insurance, where you are the beneficiary, is none of his business. But I have never sold on a land contract, I use lease options. But, the concept is the same - if one of my L/O tenant wanted to see my insurance policy, I would tell them no. Hopefully someone else has more insight.


Re: Missing parts of a puzzle - Posted by shelly

Posted by shelly on May 12, 2006 at 10:25:34:

i see what you mean,i didnt know i could go back and request the ins be rewrote but i can see where its a big issue.thanks for your help

Re: give it or not? - Posted by shelly

Posted by shelly on May 12, 2006 at 10:30:17:

i started this out with a l/o and moved onto a land contract but i have since then decided it best to call the note due in a short period of time or make the interest rate so high its worth my time.right now im kicking myself for not doing either.hope this helps someone else.also i will have them get their own ins.before closing on their own or have it in writing that i advised them to get it.thanks for your help