I purchased a house from a relative who agreed to keep their current homeowner’s insurance in force and they keep paying the prem. I s this acceptable
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UPDATED: Sep 27, 2010
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Insurance Question from Forest Park, GA
Asked on 09/27/2010
I purchased a house from a relative who agreed to keep their current homeowner’s insurance in force and they keep paying the prem. I s this acceptable NULL
Answer given on September 30, 2010
It would depend on one thing… how are you buying the house?
The reason I ask is this: if you don’t have an insurable interest in the house, the insurer isn’t going to pay you. So if you have insurance on a property you don’t own, they aren’t going to pay up if it goes up in flames. And you as the owner, don’t have insurance, so you aren’t going to get paid, either.
If you are buying it on contract, where the original owner still holds the deed until your contract terms have been met, that’s one thing, but on a title transfer sale ( typical ) your relative is throwing away their money, and you don’t have any protection at all on the house.
Not a good idea.
Now if OWN the house, and you wan’t to take out a policy, and have them reimburse you for it, that’s ok, because both would be in your name.
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