Posted by Scott Brallier on April 12, 2002 at 07:56:44:
There may be several ways to do it but what I started doing was having the seller change their current policy to a landlord policy with a $1,000 deductible and adding the land Trust as additional insured. Big pain in the butt. For some reason the insurance co’s didn’t want to cooperate with this and I tried sending a request signed by the seller, etc. I didn’t find it to work very well, and actually had a couple of houses that weren’t legally insured once. To say the least, I didn’t like that too much so I’ve changed strategy.
Now what I do is have the seller fill out a cancellation form and cancel thier policy all together. I have trained my insurance guy (alot of work but worth it) to set up a new policy for each property with the Land Trust as the primary insured and add the sellers as additional insured to make the mtg co happy. He contacts the mtg co for ABC Management CO (me) for 123 Main St (the house now a rental)owned by John Doe (seller) and has the premiums escrowed and paid to the insurance, etc.
So far so good. It took a while for my agent to get his underwriters to set them up with the Land Trust as insured but we’ve finallly got it all down - I think! He’s happy because I e-mail him the info on the 2-3 houses per month that I’m picking up and he’s done all the work in setting it up and now all he has to do is rack 'em up as they come in. He loves it.
Hope that wasn’t too rambly, but to me insurance is the biggest pain. - Scott