Re: on insurance - Posted by Jim FL
Posted by Jim FL on July 14, 2003 at 19:15:50:
While I see the logic in your plan, the extra expense is hard to justify.
Especially here in my state where insurance rates are just plain crazy.
Rather than keep the old policy in place, go ahead and cancel it, getting a new one.
However, don’t list yourself as the insured.
List the trust, and its beneficiaries as they may appear, along with the lender.
This looks like, and very well may be an estate planning move, thus lenders will not mess with it.
In several years of buying houses this way, I always get a new policy, IF the old cannot be changed to a landlord policy, with the trust as the insured.
The only issue I ever had was an insurance agent telling me that his company could not list a trust?
He was wrong, I just went to another agent, with the same national company, and got a policy with them.
Since then, we use independent insurance agents for all policies, and get better rates and more flexibility.
Check out insurance agents locally, you might save some money, and increase your cash flow.
I moved over 2 dozen policies last year, and it really did make a nice difference.