Insurance policy on a Sub-to

[Keonnee Linnell]

Hey everyone, I recently purchased a sub-to and I’m fairly new to this specific strategy so I’m unsure how to go about getting home insurance on this specific property.

Here is the situation: I just purchased this home subject to which I received from a wholesaler. They were paid off in addition to the homeowner, and I pay the mortgage (PITI). I, as the new homeowner, am actually moving into this home as my primary residence. Do I get a secondary insurance policy and pay both, and if something were to happen with the property I only file a claim with my insurance? Or Another strategy I heard is you get another policy with the name of your LLC/trust as the primary policyholder, identifying the mortgage company as well, then adding the seller as an additional holder. After about 10 days of coverage with the new policy you switch out the policies notifying the mortgage company. What do I do? 🤯

[Gregory Schwartz]

I dont pretend to be an insurance or subject to expert. But Eddie Speed interviewed on the On The Market podcast had some interesting points, specific to insurance. 

https://www.biggerpockets.com/blog/on-the-market-206