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.

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.

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.

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.

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.

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.

14 JanInsuring Short-Term & Vacation Rentals

Are you an investor who owns short-term vacation or rental property? Or, are you a homeowner with a nice home located near an area of interest that you lease out periodically for vacationers or weekend travelers looking for a three-day getaway? If so, this question is for you: What’s the difference between a rental home occupied by a full time tenant and another home occupied by multiple tenants, each for a short period of time?

13 JanHow Lenders Commonly Violate State Insurance Law

While lenders may understand the ‘ins and outs’ of loan-to-value ratios, mortgage structures, amortization schedules, and everything else associated with the ‘money’ part of a mortgage loan, they know absolutely nothing about insurance, yet that doesn’t stop them from creating ridiculous requirements which violate state law and then demand that the borrower meet these requirements in order to get the loan. This is wrong.

09 JanUnderstanding Reconstruction Cost

A property’s ‘reconstruction cost’, often referred to as its ‘replacement value’ is the amount that the insurance company estimates it will cost to completely rebuild the property from the ‘ground up’ with like-kind materials at the current labor rate and materials cost for the geographic area in which the property is located.

This amount also includes often disregarded or forgotten ‘soft costs’ such as architectural fees, permitting fees, and the cost of demolishing and/or removing the damaged structure prior to rebuilding.

08 JanUnderstanding the Most Common Coverages in a Property Policy

A brief explanation of the most common coverages provided by most property insurance policies, including dwelling coverage, accidental discharge of water, personal liability, premises liability, and others.