Transfer of Insurance when assuming a mortgage

[Daniel Harnsberger]

I'm about to acquire two properties via loan assumption.  Doing this through a land trust.

My question: Obviously I will need my own insurance for the property.  When approaching the seller about this, would I ask them to cancel their own policy effective the day of closing and set up my own policy (effective same day)?

That sounds pretty cut-and-dry, but I want to make sure I'm not missing anything.

[Fabio Secaira]

The main thing to consider is that you generally can't insure what you don't own, so if the properties will be deeded to you, you can obtain insurance coverage on them, but if they won't, I'd keep the owners policy in place and have the insurance company deduct the premiums from your account instead of his. You could have him add you to his policy as an additional interested party.