I've picked up a property "sub2" using a Land Trust. Ex-owner moved property into Land Trust and then assigned beneficial interest to me.
After doing a bunch of reading and talking to local veterans, the way I did the insurance is:
Additional Insured: Ex-Owner
I've received a letter with the following language.
Lender has received an insurance document as referenced above in the name of (ME).
Our records indicate this property is in the name of (Ex-Owner). If your name has changed, please send us a ceritified copy of the name change document, a copy of your SS Card and a picture reflecting the name change so we may update our records."
What's the play?
There is about $20k of equity, so I would like to protect it. Change beneficiary to the Land Trust? Or ignore the letter?
you will need to change it the insurance company will always look for a way out if there is a spelling mistake in ur name they could deny coverage
yidel from sapphire brokerage
Ive done about 40 sub2's
Ive always kept the insurance in the persons name on the property.
Sent a letter of auth 2 release to insurance company.
sometimes along with POA.
Ive added my llc or trust as additional insured.
Ive kept the policy in place and have had another one drawn up with my ins company as well in my LLC or trust.(sometimes done this)
this has worked well for me.
I've read 2 insurance policies is instant denial of claim. Both insurers will claim other policy is responsible.