November 17, 2008
I sold a house on land contract. How should I handle the house insurance. In my name still?
Robo asked:
The insurance states he is liable, But is still in my name. Should I make him insure it, or do I keep it in my name?
The house will remain in my name until it is paid for. I want to be sure there is coverage on it.
The insurance states he is liable, But is still in my name. Should I make him insure it, or do I keep it in my name?
The house will remain in my name until it is paid for. I want to be sure there is coverage on it.
Filed under Renting & Real Estate by admin
Comments on I sold a house on land contract. How should I handle the house insurance. In my name still? »
You definitely need to insure the house as long as you own it. The person that is in the process of making payments on the house should consider a form of renters insurance to protect his belongings. If the house is financed, the bank would require you to keep insurance. If you own the house free and clear, I would still definitely keep insurance coverage on it. Otherwise, if it were to burn, the house is gone, your buyer has no obligation and you end up with a vacant lot.
It’s his home as long as he is making regular payments to you. He needs to carry his own insurance. I’d make sure he keeps it current and if he fails to do so you can threaten to take your house back.