Is Your Deal Insured Correctly?

Question

Hi all,

I wanted to post in this forum to bring awareness to how your Contract for deed or lease to purchase properties are insured.

It's my experience as an insurances profession that agents often do not write policies correctly with this type of transaction.

If any of you have any questions and live in GA, NE, IA, KS, or MO please reach out and I'd love to answer them for you.

Regards,

Phil

Phil Workman · Answer

@Joe Splitrock Thank you for your response. It's mostly the agents that make mistakes.. For example if you do a contract for deed and transfer deed to the buyer...the buyer is now the insurable interest, not the seller who is now the "bank"- seller now becomes an "interested party"...However, it's my experience that these policies don't get updated thus there's a huge exposure...

I called out specific states as those are the states I'm licensed in.

I see you're from Sioux Falls, SD... I am from Brookings originally and lived in SF for 6 yrs.

Thank you again for your response.

Phil Workman · Answer

@Joe Splitrock Absolutely. I am a huge proponent to risk migitation.

Joe Splitrock · Answer

@Phil Workman small world, thanks for explaining. There is lots of risk for people who do not properly insure. Odds are nothing will happen, but if it does and you are not covered, look out.... I am not an insurance guy, but I am a risk management proponent.

Joe Splitrock · Answer

Can you please explain what people do wrong and what the correct way is? Curious why you called out specific states or is that just your sales territory and are you looking for customers? If that is the case then marketplace is probably a better place for your post.