Insurance with Creative Financing

[Lauren Cutchen]

I just acquired a property Subject To. We plan to owner finance it out. We must carry insurance to satisfy the lender requirements. We plan to lower the coverage and premiums. But with the new owners, they won't have the deed to the house yet until they refinance. If something happens that needs a claim, who picks up the tab? The new owners won't be able to get an insurance policy, and they can't get renters insurance because there's no lease. How do you handle insurance in this case?