We were denied Insurance coverage.

Some examples:- House catches fire --> make sure you have proper insurance coverage- House floods --> make sure you have proper insurance coverage- Realize you don't want to be a landlord --> make sure you have researched property management companies in the area in advance- Decide you want to get rid of the property quickly --> did you purchase at a price such that it wouldn't be too hard to sell?

Any originator of a secondary market loan stands the risk of having to repurchase a bad loan, while they are insured the originator is not totally covered and they may see more of a reserve requirement to cover any loss, the originator may feel more comfortable at 90% where insurance coverage may be increased.

Ridiculous.I recommend you speak with Housing personally to ensure coverage is an option.

@Kevin Seith Tear downs are more costly as mentioned by @John Moore there are usually additional costs for permits and engineering and you can't forget having to comply with all the current zoning rules like setbacks, off street parking, sprinkler systems, fire separation, density, lot coverage, and impervious surfaces.

But I understand there may be some sort of hurricane coverage that I know nothing about.The last thing is your interest rate.

William, to my knowledge, you'd need to go to a lender that may provide an insured loan, I don't believe you can go directly to an insurer and get a policy of some kind and take that to a lender.Usually, commercial lenders only require it when a deal is over 80% LTV and on much bigger projects like a mall or large hotel, maybe 300 apartments.Since there are different types of coverage the underwriting will be different, specific to the deal.

Now, you may want to make sure you have specific landlord issue coverage which may not always be present in an umbrella policy over both your primary residence and your investment property.

Insurance coverage is tough to get & premiums can be high.

When I begin making payments, as most of you know, it will include principal & interest, taxes and insurance.Question:If I plan to move out of my duplex, would I notify my insurance company to convert my coverage from homeowners to rental property insurance?