2 Insurance Policies On A Sub 2 Deal

I want to thank everyone for their comments on my last topic.However i agree on the 2 insurance policies on a sub 2 deal,it will work just fine and it wont trigger the dos www.clause.I want to know if i get a seperate insurance policy besides the existing one with the original home owner doesnt the insurance company still reports that to the bank?how can this be done whithout the insurance company notifing the bank?

Comments(12)

  • billinseattle5th March, 2005

    You simply do not give the bank as the lender to the insurance company. Go to your agent and explain to them what you are doing and they will likely have a solution for you that works in their procedures.
    Good luck

  • ZinOrganization5th March, 2005

    right on KID.

    camaro, i suggest reading the article written by norrist, i dont have the link but he will probably post it when he reads this. apparently most insurance policies these days have whats called an "excess" clause. meaning that if a claim has to be paid and the insurance companie finds that there are two policies, then they wont have to pay out because of there excess clause.

    doesnt mean it cant be done, but its apparently not the correct way to do it. im in the process right now of changing a policy and considering just doing what lock does and having it changes to a landlord policy with me acting as the property manager and accepting any claims. but the problem i see with this is if a claim has to be paid and the insurer sees that title has changed then they also might not pay out. bit of a predicament to say the least.

  • JohnLocke5th March, 2005

    Time,

    What do we disagree on?

    John $Cash$ Locke
    [addsig]

  • norrist5th March, 2005

    I thought the idea of carrying 2 policies on the same property simultaneously? :-? :-? :-?

  • JohnLocke5th March, 2005

    Tim,

    Wrong, never said it anytime or anywhere.

    John $Cash$ Locke
    [addsig]

  • norrist5th March, 2005

    P.S. If we agree...cool!

  • ZinOrganization5th March, 2005

    im confused. why would kenmax say hes one of Johns students and thats how John says to handle the insurance issue. but now John says otherwise.

    so John. do you handle it like i said in my above post. by just getting the original policy switched to a LL policy with your company being the property manager and accepting any claims? but what if a claim has to be paid and the insurer finds that title has changed, wont they not pay out?

    not trying to put you on the spot, just looking to do things right.

  • JohnLocke7th March, 2005

    Mike,

    You are correct, I spoke with Ken(max) on the phone this morning and we are on the same page.

    I also informed Jeb that if he needed to get on that page he knows how to resolve the issue.

    Great call on your part.

    John $Cash$ Locke

  • JohnLocke7th March, 2005

    Tim,

    No problem just look at pages 71, 92 and 116 plus the subto password protected web site as it is covered there also.

    I have over 3000 posts here at TCI helping those that I can, so I think I do my fair share, I will let it go there without rablerousing also.

    John $Cash$ Locke

  • jeff120025th March, 2005

    If you acquired the property Sub2, you are the one on title, and this should be doable. If you can demonstrate an ability to make the payments, and are a credit worthy borrower.

  • InActive_Account8th March, 2005

    NO! You may not get a home equity on a Sub 2. Home equity loans have tight guide lines and this situation would not fit in the box.....Good thought though

  • beachmaster8th March, 2005

    I could easily see where a lender would like to see some seasoning, but after a year I imagine it could be done.

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