Posted on: 16th Jul, 2005 03:23am
Rent Loss Insurance is a part of the hazard insurance policy issued against investment properties.
The rent loss insurance should be enlisted in the hazard insurance policy binder. A binder is an insurance contract which provides a temporary coverage until the permanent policy comes into effect. The binder can be offered verbally or in written and ensures that the insurance policy will be issued on a property once the title is transferred.
When you're buying investment property (which you intend to rent out) with a mortgage, the lender would like to check the insurance binder at or prior to closing. He may wish to check if you have rent loss insurance or not. For this reason, it's necessary to enlist the rent loss coverage in the binder. So, you should ask your insurance agent to breakdown the items covered by hazard insurance policy, a part of which is your rent loss insurance.
At closing, you need to provide the lender with a copy of the hazard insurance binder along with a paid receipt showing that you have paid the current year's insurance premium.
The rent loss insurance should be enlisted in the hazard insurance policy binder. A binder is an insurance contract which provides a temporary coverage until the permanent policy comes into effect. The binder can be offered verbally or in written and ensures that the insurance policy will be issued on a property once the title is transferred.
When you're buying investment property (which you intend to rent out) with a mortgage, the lender would like to check the insurance binder at or prior to closing. He may wish to check if you have rent loss insurance or not. For this reason, it's necessary to enlist the rent loss coverage in the binder. So, you should ask your insurance agent to breakdown the items covered by hazard insurance policy, a part of which is your rent loss insurance.
At closing, you need to provide the lender with a copy of the hazard insurance binder along with a paid receipt showing that you have paid the current year's insurance premium.
Anonymous
Posted on: 16th Jul, 2005 03:23 am
I'm trying to find retn loss insurance, but don't want a fire policy as I'm purchasing a condo for investment.
it would make sense to me that an insurance company would do that, though you obviously couldn't cash in on that portion of your policy based on not having had a tenant to begin with.
it would occur to me that an insurance agent might be the one to ask this question of.
it would occur to me that an insurance agent might be the one to ask this question of.
We are trying to refi a home. We own the company that pays rent for this home and are now told it is an investment property and as such, they require rent loss insurance. The loan is at $59,000 and the place appraised at $130,000. Why is Bank of America being so petty? They already hold the loan and I was told when this started it would be simple now after 4 months and each week they require something else out of the blue. Am I being "played"?
Hi Guest!
Welcome to the forums!
May be it in in the rules of Bank of America that you will have to go for a rent loss insurance in case of investment properties. However, I definitely agree to it that they should have informed you about the rent loss insurance before-hand.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
May be it in in the rules of Bank of America that you will have to go for a rent loss insurance in case of investment properties. However, I definitely agree to it that they should have informed you about the rent loss insurance before-hand.
Feel free to ask if you've further queries.
Sussane