Who should be insured with a Land Contract and will it trigger due on sale clause?

[John McCabe]

Looking for some Insurance advice on anyone that has completed a land contract on rental property. Please Help!

SCENARIO: I am a seasoned landlord and am purchasing 5 more rental houses from my father via land contract. I would like to continue to use his insurance company for the Home Owners Insurance Policy. He still has small mortgages on each of the properties and the insurance is escrowed so he will continue paying the premium by way of his monthly mortgage payment. His agent recommended that I be listed on the policy as the insured and he be added as an additional insured.

QUESTION: If we change me to the primary insured and him as the additional insured, do you think this change will catch the attention of the current mortgage holder and trigger the "due on sale" clause. If so, is there a better way to structure the insurance so that we are both protected from a liability and a physical loss stand point.

Thank you for your input!