Posted by William Bronchick on December 20, 2000 at 17:53:08:
As explained in my Lease/Options Course . . .
You get the seller to execute a “performance” mortgage to secure the option. This will place you as a lien holder on the property, which, among other things, gives you an insurable position.
Courts have been split as to whether an option by itself is an insurable interest in the property.