Alabama Tax Sale Certificate - Adding insurance

[Jeremy W.]

I have purchased a Tax Cert in Alabama and have some questions on the insurance aspect. Here is some back ground.

Tax Certificate, Former Owner is Still in Possession, Bought at 2018 Sale, Residential Structure on Property

I was going to add casualty insurance to the property but was unsure if I need to wait for Tax Deed for the premiums to be included as an expense with redemption or if I add insurance with a certificate and owner is still in possession if those premiums+interest will count toward an expense at redemption.

Any help would be appreciated.

[Denise Evans]

@Jeremy W., there is no law in Alabama regarding renters insurance.  Some management companies require it, some recommend it, most never even think about it. This is a topic for each investor to cover with prospective management companies before hiring one.

I know of at least one management company that recommends the owner pay for the renter's insurance (with the cost folded into the rental rate) and advertise that fact as a marketing matter.  He said it is very effective because in his average price range, many people have been turned down for auto insurance at least once, or paid premiums for auto insurance and then could not keep them up and so the insurance was cancelled.  As a result, they are afraid to even think about insurance. In the alternative, they think they won't be able to get it, they will be turned down as a tenant, will have wasted the application fee and one more person in the world will think of them as a loser.  So, taking away all of those fears while at the same time providing renters insurance makes this investor VERY competitive in his marketplace.  His rents are slightly higher than his competition, because of the added renter's insurance premium, but it does not make any difference.