Question Regarding Insurance In Sub 2
Hey guys, I just did my first sub 2 deal and recorded the deed, now my big question is.... regarding insurance, there is already an escrowed insurance policy in place with the seller. I plan to leave that policy in place, my question is, how do I go about getting a new insurance policy with my trust and putting the lender as the beneficiary of the new policy??? I am scared the new insurance policy carrier will notify the lender and that might raise an eyebrow towards me.
Heeelp, please!!!
I usually have the seller sign a POA and send the POA to the lender requesting that the mailing address, phone number, email, or any kind of contact information be changed to me. Send the same POA to the insurance company and request the same. You can get the insurance information from the mortgage company.
I then find a new insurance policy that is a landlord policy and add the old owner as an additional insured and the morgagee as a loss payee. I cancel the old policy and send in the new policy. The prorated insurance check should come to you and you can deposit it by writing "POA for John Smith" and sign your name on the back.
U guys are awesome,
thanks so much for your help!!!
Just understand that if you have a Owner Occupied insurance policy and there is a fire, they will not pay the claim. Because after the subject 2 it is no longer owner occupied. Basically after a subject 2, if you do not get a landlord policy, you have no insurance. Maybe not a big deal if you do not have much money into the house.
BE IT KNOWN, that I/we, Arthur M. Smith, a single man, have made, constituted and appointed and by these premises make, constitute and appoint Brenda Smith our true and lawful attorney?in?fact, for us and in our name, place and stead for the following specific and limited purpose only
Lot 16, Park Place on Lake Wada, Second Addition, According to map or plat thereof as recorded in Plat Book 34, Page 43, of the Public Records of Lake County, Florida.
Tax Parcel I.D. No 028-19-27-031000016600
AKA: 345 Park Avenue, Eustis FL 32736
and on our behalf, to do and perform for us THE FOLLOWING ACTS.
(1) To contract and sell, to transfer and convey and/or borrow against the real property listed below at such times and in such manner and upon such financial terms as to him/her may seem proper, as well as the specific power to execute all Deeds, Notes, Deeds of Trust, Insurance, Escrow Deposits, Escrow Checks, Mortgage Payments, Settlement Statements or such documents in connection therewith as may be required to effect or assist the transaction and closing of said loans, sale or sales.
(2) Everything, as I/we might or could do if personally present, with full power of substitution and revocation, hereby ratifying and confirming all that said attorney or substitute shall lawfully do or cause to be done by virtue hereof.
I/We hereby ratify and confirm all that the said Brenda Grossnickle as our attorney?in?fact, shall lawfully do or cause to be done by virtue hereof.
This Power of Attorney is a durable Power of Attorney and shall continue even in the event of incapacity of any principal.
IN WITNESS WHEREOF, I/We have executed the foregoing Power of Attorney this ____ day of _______________________, 2006.
_________________________________ ________________________________________
Witness Signature Arthur M. Smith
Print____________________________________
_________________________________
Witness
Print____________________________________
STATE OF _____________________, COUNTY OF ___________________
The foregoing instrument was acknowledged before me on ___________________________ by _____________________________________________________________________ who are/is personally known to me or produced ______________________________ as identification.
________________________________________
Notary Public
Printed Name ________________________________________
My Commission expires: ____________________
FYI - Just last week I had my insurance agent check on two policies where the previous owner was the additional insured, and my agent said that the insurance company would include their name (along with mine and the loss payee) on any claim check.
Only if they were a "loss payee". The additional insured endorsement will offer the additional insured liability protection The loss payee clause will ensure they are party to a property claim (and check). Many folks (agents included) use the terms interchangeably, though they are two different things...
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The agent may also have simply mis-spoken, as "additional insured coverage" is different than "additional named insured" coverage, and the two should not be confused. An "additional named insured" usually is an affiliate of the primary insured. An additional named insured may be liable for premium payments, and some exclusions from coverage apply to an additional named insured but not to an additional insured. FYI...
The person named in a loss payable clause to whom insurance proceeds are to be paid in the event of damage to property. The loss payee must have an insurable interest. Loss payees include automobile lienholders and property mortgagees...
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"Additional Insured" parties are not entitled to any monetary claims. They will receive liability protection (up to a certain dollar amount) only. That agent is mistaken.
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Man am I confused, so which one should I use for the seller???
http://www.wallacejordan.com/publications/bank_4.htm
Quote: A significant improvement over being named as certificate holder, and the most common form of lender coverage, is to name the lender as a loss payee or as an additional insured. Either designation entitles the lender to receive proceeds of the hazard insurance policy upon the occurrence of an insured loss, usually payable jointly with the borrower.
This is the first relevant find from my google.
Hey, thanks for the form, this thread has been very enlightening!
Quote:
On 2007-09-24 14:27, bgrossnickle wrote:
BE IT KNOWN, that I/we, Arthur M. Smith, <snip>
He might be able to illegally refi with the deed was not recorded.