Subject To / Insurance & Personal Residence HELP
We are now told that we have some policies that will be droped at the end of a term, we have a few months. Here is the deal.
We have taken over a house and will be moving into it as our personal residents. But since we don't have a homeowners policy the others will be canceled. We place all properties into Land Trusts and we are the benificial interest(our LLC).
Now question comes in here...How does anyone live in one of the properties they take and handle the insurance. Owner occupied or Land Lord. If owner occupied, do you deed it to your Company and just list the company as main insured. If so does this cause a problem with the underling loan?
Basicly how do you handle the insurance on a house you have taken Subject to? And do you have problems with the mortgage company?
Thanks
Sire
Hi SIre,
If you reside there, even though your company owns it, the "homeowners" form is proper and should be written. You will tend to find some obstacles from many Agents/insurers, however, as they tend to (in general) not understand the REI strategies we utilize. Regarding the sub2 scenario, this article may help:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=472
Best regards,
Tim