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20 OctLegal Title versus Equitable Title
Because the insurance industry is founded on the principals of risk, contract law, and civil liability, properly insuring properties purchased with a wrap-around mortgage can be a challenge, especially when titled in a trust, and the issue of ‘legal‘ title versus ‘equitable‘ title often arises with regards to who has an ‘insurable interest‘ and who doesn’t.
Read More ...13 OctUnderstanding Your Insurance Score
Your insurance score is a snapshot of your specific ‘insurance risk’ at a particular point in time – but it is important to know that it is not the same thing as your credit (FICO) score, although they are similar in nature. As a standard underwriting consideration, an ‘insurance score’ is a rating used by insurance companies to assist in determining insurance premiums and which is made up of several factors, just one of which is your FICO score (which is why you and all other members of the policy are often required to provide a social security number when requesting a new insurance quote).
Read More ...15 JanHow To Insure Vacant and Properties That Are For Sale
To get right to the point, there is no one-size-fits-all policy and properties which are either vacant or held for sale at the time an insurance policy is applied for cannot be written with a standard-market insurance carrier and they require different types of coverages. The following information may seem overwhelming if you are not familiar with the insurance industry, but it is intended to give you a basic understanding of why coverage for vacant property is more expensive and how it differs from the other property policies you may be more familiar with.
Read More ...15 JanHow to Insure Properties Taken ‘Subject To’ the Existing Loan
Prior to the late 1980’s, mortgages were written differently than they are today and investors and homeowner’s purchasing new property commonly used the ‘Subject To’ method of assuming the seller’s underlying loan as a main-stream and accepted purchasing method. However, after the Savings and Loan debacle, and the subsequent removal of popular NENQ (Non-Escalating Non-Qualifying) loans, the method of using ‘Subject-To’ financing was swiftly brought to an end. That said, however, with the new ‘credit crunch’, the record-high number of foreclosures, a declining housing market, and the recent changes in loan programs; investors are locating bargains and, although technically not allowed, the ‘Subject-To’ method is again alive and doing very well.
Read More ...15 JanDwelling Policies vs. Builder’s Risk
Not all houses are created equal – and neither are insurance policies. If you are an investor and you have ever purchased a rehab property using only ‘builder’s risk’ insurance – you’d better continue reading. Few people, including investors and full-time real estate professionals, have any real understanding of what property insurance is, the various coverages used, endorsements, and, most important, exclusions.
Read More ...14 JanProblems with Insuring Seller-Financed Properties
Seller-financing a property is a great alternative to traditional mortgages and the difficulties that they involve; however, insuring these seller-financed properties is complicated at best and somewhat risky.
Read More ...14 JanBuilder’s Risk 101
contrary to its name, a Builder’s Risk policy may not be applicable in many remodeling and construction projects and this is the most commonly mis-sold policy in the market – which means that thousands of people each year pay for insurance which they never really even have.
Read More ...14 JanHow a Property’s Reconstruction Cost is Determined
When it comes to determining how much value you should insure your property for, one issue that seems to continually cause confusion and misunderstanding is that of a property’s reconstruction amount, also commonly referred to as its replacement cost.
Read More ...14 JanWhy Price Should NEVER Be The Only Issue
The price of insurance is always a factor in whether or not to purchase an insurance policy, but it should never be the factor. Price is obviously important, but it isn’t nearly as important as the actually coverages you are purchasing to protect yourself and your family.
Read More ...14 JanInsuring Vacant and Actively For-Sale Properties
To get right to the point, there is no one-size-fits-all policy and properties which are either vacant or held for sale at the time an insurance policy is applied for cannot be written with a standard-market insurance carrier and they require different types of coverages.
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