Lease Option Insurance - Posted by Keith Cantillon

Posted by Keith C on June 04, 2005 at 15:20:35:

Thank you for your input. I will be making your suggested revisions to my contract.


Lease Option Insurance - Posted by Keith Cantillon

Posted by Keith Cantillon on June 03, 2005 at 19:11:29:

I am new to real estate investing and about to close on my 2nd lease option deal. The subject property is a fixer upper in So. CA. I have negotiated a 1 year lease with a option to buy. Here is my question. During the lease period I will be making improvements to the property including a room addition. When I am done I will have about $50,000.00 invested in improvements. When the improvements are completed I plan on perfecting the lease and then sellibg the property at a good profit. How do I protect myself from loss to fire etc. The owner will be carring HO insurance but how do I fit into that. Please any advice will be appreciated.

Re: Lease Option Insurance - Posted by DaveD (WI)

Posted by DaveD (WI) on June 04, 2005 at 10:22:43:

  1. Seller changes insurance to a landlord/rental policy.

  2. Seller names you as additionally insured because of your equitable interest.

  3. Seller increases insurance amount to cover your exposure as needed. Pay him the premium difference if he squawks.

  4. Get your own renters insurance for any contents, they won’t be covered by the landlords policy.

  5. Don’t smoke :wink: