awsomenurse asked:
Do I still have to carry the insurance on the home since the loan will still be under my name???
We have no contract yet on it as I am in the first stages of deciding to land contract house to my renters.
Do I still have to carry the insurance on the home since the loan will still be under my name???
We have no contract yet on it as I am in the first stages of deciding to land contract house to my renters.
{ 5 comments… read them below or add one }
READ the contract
it’s usually spelled out clearly
You will have to carry the homeowners insurance if you are paying a loan on it. Your renters will have to purchase renters insurance.
Who gets pounded if the house/dwelling gets damaged? he/she pays the insurance.
or
The person who is still paying the loan.
You should not have to carry insurance because the person purchasing the land contract has to have insurance with your lender on their policy as mortgagee in case of loss.
In most states it is the person whose name is on the deed or title that is the legal owner of the property and has the legal insurable interest in the property. Until your name is off the documents that indicate ownership, you would be the person who is ultimately responsible for keeping up the insurance payments. As long as you have some ownership in the property you need to keep up the insurance to protect yourself from a loss.