Comments on: The “We Buy Houses Company” is now in California

By: hmn186282

hmn186282 — Tue, 09 Feb 2010 16:25:25 +0000

Let's assume that the worst happens: You buy a house for $100,000 with an $80,000 mortgage. One day the door swings open and the person demands to know what you're doing in his house. Turns out your seller forged this guy's name on the documents and you don't have good title. You can sue the seller, but in the meantime the court will give the house back to the victim.

In that case your lender will file a claim under the Lender's Title policy, which is in the amount of the mortgage — $80k — and they're happy. If you don't have an owner's policy, you'll be out of the house and also your $20k. That's why your lender doesn't care if you have an owner's policy or not.

Insurance is a matter of a person's risk tolerance. If you want to skip the owner's policy and take the chance that there's nothing wrong with the title, that's an option. But the cost compared to the potential loss is pretty insignificant.

By: Lady of Darkness

Lady of Darkness — Tue, 09 Feb 2010 16:14:00 +0000

Law? No.

Your mortgage company? Yes.

You determine what your policy will cover, your insurance company will only demand structure, enough to pay them if you burn it down.

Flood and earthquake insurance are options you add on, and the costs varies by your flood zone. The Katrina victims (some) opted not to have flood insurance, and suffered from their choice to spend their money elsewhere.

I have never seen a policy that is only 100 a month, but I would suppose you can get one. Houses costs too much where I live for 100 bucks to cover them.

By: Red Velvet

Red Velvet — Tue, 09 Feb 2010 00:02:54 +0000

No, what your lender is saying that you need a home
owners policy or binder on the home that you are going to buy. You obviously have already signed a contract, and doing the process of setting up the closing, you have to furnish them at least a binder, that will tell them that you have coverage once the loan is closed and the house is yours. They will collect the amount for one year, plus about two months to establish your escrow account to ensure that when the insurance policy comes up for renewal that there will be enough funds to cover the renewal cost, which generally will go up a little bit. This is why they charge a full year plus a couple of months. Just give your agent the description of the house or a copy of the appraisal and they can do the rest for you. Your broker/lender will then accept a faxed copy, and the original policy can be furnished at the closing. Your mortgage originator or loan officer should have explained all this to you. If you aren't going to have an escrow, then you will just furnish a paid in full for one year home owners policy at the closing, but again the lender/broker will need at least a binder of proof and the cost prior to sending out the closing package to the attorney for final closing of the transaction.

By: MissRockabillyLilly

MissRockabillyLilly — Mon, 08 Feb 2010 13:12:57 +0000

Escrow. You give your quote to your lender and when you go to close you will pay it there. At least, that is what I had to do.

By: dallas patent

dallas patent — Mon, 08 Feb 2010 05:08:24 +0000

If you're not living in it, it's not going to be a homeowners policy. It will cover the structure. If you're doing more than cosmetic work, it's a type of builder's risk policy called an installation floater. If it's just cosmetic, you can buy a vacant dwelling policy. You can't add liability to an installation floater, but you can't add building materials on premises to a vacant dwelling policy.

And just because you're there every day, doesn't mean it's "owner occupied". If you're not LIVING there, it's unoccupied, aka, vacant.

Insurance on a flip house is NOT going to be what you're likely to think of as reasonable.

You need to sit down with your agent and discuss this in detail. If you're going to be flipping houses regularly, you're going to need a close relationship with an agent who can get things done for you.

By: Carrie C

Carrie C — Sun, 07 Feb 2010 15:45:08 +0000

Carrie C, Home insurance covers lots of different things. I'm not familiar with the Georgia regulations, so I suggest you visit a nearby homeowners insurance agent. http://www.easyhomeinsuranceguide.com/Georgia-Home-Insurance.html They should be able to help you.

By: lauriece

lauriece — Sat, 06 Feb 2010 16:06:36 +0000

Any Insurance company should be able to give you a Homeowners Policy. The same company you have your vehicle ins. through should be able to help you with the house too!

American Family is pretty good and they usaully don't pester you with stuff.

By: analisha2201

analisha2201 — Sat, 06 Feb 2010 16:00:28 +0000

House insurance is insurance to cover your house, if it burns down or such.

YOU are talking about LIFE insurance, either a decreasing term insurance policy, or straight term. It's going to be rated based on how old you are, what your health is like, how much the mortgage is, and how many years you have left.

Ever thought about consulting an estate attorney, and putting the house in trust? Then letting the life insurance policy fund the trust, to pay property taxes, insurance, food, and utilities, after you pass away? That provides housing to him, without giving him any income.

By: stevelonelyguy74

stevelonelyguy74 — Sat, 06 Feb 2010 15:52:17 +0000

It is a little hidden question in the new cost estimator program. Well, the question really has to do with shape, square, rectangle, irregular, very irregular.
The more corners a building has, the more expensive it is to rebuild.
We don't ask, we get measurements from the town & get our own pictures.

By: bizzy bone

bizzy bone — Sat, 06 Feb 2010 15:31:18 +0000

Amica is a great direct writer. They've got low prices, but are fast to cancel you with a claim.

USAA, if you qualify, is probably the best. I also really like Travelers and Erie.

Right now, my personal homeowners is with State Farm.

You're best off checking first, with the company that writes your car insurance, though.