Insurance question?? - Posted by Kathleen Cory
Posted by Kathleen Cory on March 12, 2002 at 19:53:06:
Hi all! I have a buyer who objects to putting me as the named insured on my required insurance policy. She is concerned about her own investment , not to mention personal coverage of belongings, etc.
I really understand her point because I am purchasing two apartment buildings by land contract and I feel vulnerable also, because the seller is the named insured. What happens to the purchaser in the event of a fire or other loss? (besides having to trust the integrity of the seller)
My understanding is that the insurance payment would be used to finish paying off the owed amount to clear the debt, but then what? How is the buyer able to recoup all he/she has invested?
She is suggesting two separate policies on the same MH. One for her and one for me.
I like to use Lonnie’s model in everything, but not sure of this one point. Any thoughts?