Posted by Jim FL on September 25, 2003 at 22:46:02:
Rob,
Bravo!
I hope your guy works out for you.
If not, still check some independents, and if need be, see if they broker policies for “Capital Preferred”, or some such name.
I use them on several things, so we know they insure, naming a trust.
Of course, might be different in your state, so good to check.
Just an F.Y.I…if the other works out, cool.
Take care,
Jim FL
Sub2 Insurance Problem (TN) - Posted by Rob Ricker
Posted by Rob Ricker on September 23, 2003 at 23:32:09:
I recently took my first “Subject To” deal. I’ve got the down payment/option money and $184/mo positive cashflow. Everything’s working well, except …
I’m having problems with the insurance policy and need advise. I used the documents from ABC’s of subject to, which requests the insurance company to change everything to a Landlord Policy and add the Land Trust as Additionally Insured. State Farm cancelled the policy, and the 6 insurance companies I have called will not underwrite a new policy. Am I screwed or what? I originally was telling the insurance companies exactly what I was doing, but that didn’t work. Now I’m using the “don’t ask don’t tell” method of insurance shopping. Everyone I’ve called will only insure individuals (No corps or trusts) AND/OR they won’t insure a property that is not inspected monthly by the primary individuals on the policy. Can anyone refer an agent or insurance company that will do these deals in Tennessee? Can anyone give me advise on a better way to handle the whole situation? I can’t believe how difficults these people are to deal with. Do they think I’m going to burn the house down or something?
Re: Sub2 Insurance Problem (TN) - Posted by Hank FL
Posted by Hank FL on September 24, 2003 at 11:32:05:
The guys that run the REIA over here also spend quite a bit of time in Nashville (Nashville REIA) and even lend money there. Look up Major Financial, they should be in Nashville as well. I’d bet they have a good idea as to whom the best insurers are in your area.
Re: Sub2 Insurance Problem (TN) - Posted by Jim FL
Posted by Jim FL on September 24, 2003 at 01:15:58:
Rob,
Maybe you have or have not tried this, but get out the phone book.
Call around to some local independent insurance agents and brokers.
Ask them if they sell “rental dwelling” policies?
When they say yes, get a quote.
When the numbers are right, just complete the application, and name the trust, or trustee as the insured, and the lender, and the trust as the loss payee.
Should work.
I do seem to recall some issues with Tennessee and land trusts, something about not recognizing them or something?
Check state laws, this might be an issue as to why you cannot get a policy naming a trust.
What about a local REI club?
There should be somewhere there who can refer you to a company locally.
I know state farm allows these policies, if they are issuing in your state.
They stopped here for a while.
Bottom line, keep looking.
There has to be someone out there to cover this thing.
Might just cost a little more.
Good luck,
Jim FL
Re: Sub2 Insurance Problem (TN) - Posted by Rob Ricker
Posted by Rob Ricker on September 24, 2003 at 14:17:37:
Thanks Hank!
I’ll look for Major Financial. I’m actually in East Tennessee (3 hours from Nashville) and have never heard of them. I’ll check the internet. Thanks again.
Re: Sub2 Insurance Problem (TN) - Posted by Rob Ricker
Posted by Rob Ricker on September 24, 2003 at 14:12:31:
I’ve called the independents too. They’ve not told me no yet, they’re just not getting back with me. State Farm says they will definitely not insure within a trust. The agent said it’s a new policy that’s costing him deals. I’m going to keep looking! Thanks for the advise.
Re: Sub2 Insurance Problem (TN) - Posted by Mary
Posted by Mary on September 24, 2003 at 13:06:26:
I’m looking for a good insurance company too. State Farm has a new deal on rental dwellings. There is a minimum annual premium on each property regardless of the amount of insurance on it.
Re: Sub2 Insurance Problem (TN) - Posted by Jim FL
Posted by Jim FL on September 24, 2003 at 18:40:49:
Rob,
If they are not calling you back, stop in the office.
I did that, walked right in the day State Farm pulled a fast one on me.
When I approached the receptionist, I told her I needed someone to assist me with a quote for 24 rental dwelling policies.
They were on my like flies.
Now granted, might have been the number of insurance policies I was seeking to move at the time.
But, speaking to them face to face got the job done.
Try it, just go see them.
Take care and good luck,
Jim FL
Re: Sub2 Insurance Problem (TN) - Posted by Rob Ricker
Posted by Rob Ricker on September 25, 2003 at 24:07:41:
Thanks Jim! I walked into the Prudential office (agent is a guy I go to church with). I explained the whole subject to process A to Z, the fact that I own through a trust but the mortgage is in another name, etc., etc. He’s going to try to get me a policy setup tommorrow. He know’s that I have 4 policies I can give him and referals from my day job (mortgage broker). I’m hopeful that this will work out. Sitting down with and explaining things to the agent definitely makes things easier. I just hope his underwriters agree.