Re: get another policy - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 22, 2006 at 12:34:30:
Although you didn’t ask about this, it’s generally accepted that the trustee and beneficiary should NOT be the same person or entity. I thought Bronchick’s course addressed this.
As for the insurance, there are a couple of options. You can cancel the existing policy and replace it with one of your own. You’ll need to make sure the lender is named as loss payee. The trustee would be the named insured.
Or, as others noted, you could leave the existing policy in place and buy another policy. However, if the insurer is aware of the transfer of ownership and is already asking questions, they’re probably not going to just forget about it. Obviously, even if you left this policy in place, you wouldn’t make a claim on it in the event of a loss.
Also, you don’t get a homeowner’s policy unless you’re going to personally occupy the property.
If it’s vacant, you’ll need a builder’s risk policy. If it’s occupied by tenants, you’ll need a landlord policy.
If you get the wrong kind of policy and have to make a claim, expect to find it denied at best, or at worst, be investigated for fraud.