Can we get homeowners insurance on a property we own 75% of the outstanding loan?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Sep 15, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Harleysville, PA

Asked on 09/15/2011

Can we get homeowners insurance on a property we own 75% of the outstanding loan? We sold the property next door 4 years ago to a couple in an owner finance situation. Currently this couple is behind on their taxes, are not complying with township building and zoning regulations and we have not received their mortgage payment for this month. We have hired an attorneyto help us with how to handle this situation. Because relations between us and the couple are very VERY strained we feel they may be in the process of leaving/foreclosing on their mortgage note. Could we or rather should we buy homeowners insurance so as to protect our investment?

Answer given on September 18, 2011

The purchaser of your property should have been required to carry insurance on the home and you should be receiving evidence of insurance. In addition, if you are listed, you would receive any notice of non payment of the insurance or cancellation. You need to make sure the insurance is still in force on the home. If you are not listed on the policy, get added immediately.If there is a policy in force, you need to make sure the premium continues to be paid. If it is not, I would recommend that you pay the premium to keep the insurance in force. If the people move out, I would recommend that you contact your insurance agent to see if you can purchase insurance on the home.Your attorney should also be able to assist you in this area to be sure you are properly protected in the event the borrowers should default or move out.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and AS IS. It has not necessarily been reviewed by the management staff of nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption