Re: Rehabs and Insurance Binders? - Posted by Ron (MD)
Posted by Ron (MD) on February 22, 2001 at 19:50:35:
The answers to your questions vary from insurer to insurer. I can only speak for mine, which is the country’s largest homebuilder insurer (Zurich).
My property premium is for one year and there is no refund when I sell before the end of the year. (My liability policy is different. On that one, I don’t get any return premium, but I can substitute a different house in place of the one that sold.)
You mentioned something that concerns me a bit. You said that your policy includes coverage for lost rental income. Most policies do not cover vacant houses. If your agent has given you coverage for occupied, rental properties, you may learn the hard way that you aren’t covered in the event of a claim.
Also, you say that you can opt to pay your premiums quarterly. I am required to pay the full year up front, I suspect because the insurer knows that if I sell the house in six months, I am unlikely to continue to make payments for a property I no longer own.
Check with your agent. He will be able to answer both questions…yours and mine.