Hello BP World,

I have been selling properties on land contracts to other investors who rehab them and need a little guidance on what needs to be in my contract in terms of types of coverage.  

1.  I originally thought that "additional insured" was enough to cover my interests, but apparently some insurance companies do not notify additional insured if a policy is cancelled.  Should I be named as both mortgagee and additional insured? Should I be named anything else?

2.  I want to make sure that there is liability coverage as well as fire, but I also want to make sure that there is theft/vandalism coverage.  Is that usually a separate add-on policy?

3.  I am going loan money in the form of a revolving line of credit for materials to buyers and want to make sure those materials are protected from theft/vandalism once they are installed.  What should be the proper procedure to make sure my materials are protected?

4.  In case of a claim, I want the money to go to me first and not the buyer.  What is the wording I need in the contract and with the buyer's insurance company?

5.  I want to avoid having to pay for a back-up policy of my own.  Any advice on making a claim on a buyers policy in the worst case scenario that he defaults and is no longer cooperative?

Thanks so much for any and all input.  I think this issue is above my agents head and he has so far refused to put any of this in writing and only given my vague advice over the phone.