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.
Hi Guest
Welcome to MortgageFit forum.
A rent loss insurance requires you to pay an extra premium for loss in income in case you lose rent. This is an insurance policy which pay the landlord a predetermined sum of money in case he does not have a rent. A rent loss payment may also be provided to the landlord when there is any disaster occurring at the rented house which makes it unsuitable for rent until it is repaired. It helps to make up for the financial loss in the absence of any tenant.
Rent loss insurance is a policy equal to minimum of six months of gross rental income and is usually done to compensate losses when the income ceases due to any hazard or any physical damage to your rented condominium. It is not necessary that you have to include a fire insuarnce policy with the rent loss insurance.
The operating loss is evaluated by comparing the gross monthly rent proceeds less mortgage, tax and insurance payments along with maintenance, utilities and the vacancy factor.
I would advise you to consult an insurance company which offers rent loss insurance and then proceed further.
Hope this information will satisfy your needs.
Please write back with further queries. Get yourself registered at http://www.mortgagefit.com/signup/ for free consultation on any of your queries.
Regards,
Jessica.
Welcome to MortgageFit forum.
A rent loss insurance requires you to pay an extra premium for loss in income in case you lose rent. This is an insurance policy which pay the landlord a predetermined sum of money in case he does not have a rent. A rent loss payment may also be provided to the landlord when there is any disaster occurring at the rented house which makes it unsuitable for rent until it is repaired. It helps to make up for the financial loss in the absence of any tenant.
Rent loss insurance is a policy equal to minimum of six months of gross rental income and is usually done to compensate losses when the income ceases due to any hazard or any physical damage to your rented condominium. It is not necessary that you have to include a fire insuarnce policy with the rent loss insurance.
The operating loss is evaluated by comparing the gross monthly rent proceeds less mortgage, tax and insurance payments along with maintenance, utilities and the vacancy factor.
I would advise you to consult an insurance company which offers rent loss insurance and then proceed further.
Hope this information will satisfy your needs.
Please write back with further queries. Get yourself registered at http://www.mortgagefit.com/signup/ for free consultation on any of your queries.
Regards,
Jessica.
Hello
I was just wondering how do you know that you have rent loss insurance in your policy, does it list it on the binder? My insurance agent told me it is in the policy automatically, just not listed on the insurance binder. I need to show proof, the agent said it will be in the original insurance policy when that becomes available. I am trying to buy investment property..
thanks for your time,
Anne
I was just wondering how do you know that you have rent loss insurance in your policy, does it list it on the binder? My insurance agent told me it is in the policy automatically, just not listed on the insurance binder. I need to show proof, the agent said it will be in the original insurance policy when that becomes available. I am trying to buy investment property..
thanks for your time,
Anne
Hi Anne
Welcome to MortgageFit forum.
Obviously you need the rent loss insurance to be listed in the binder. If you are trying to buy investment property, you will be required to purchase rent loss insurance. The insurance binder is a document that proves that you have a policy and gives a summary of that coverage. The binder states that your rent loss insurance is temporarily in effect until a permanent policy is obtained. You should tell your insurance agent that you require showing the binder at or prior to closing. So I would advice that you talk to your insurance agent to explain your inconvenience and ask him to provide a binder.
We hope that you will benefit from this information.
Please feel free to write back with further queries. Also register with us at http://www.mortgagefit.com/signup/ to get free advice on any other query.
Regards,
Jessica
Welcome to MortgageFit forum.
Obviously you need the rent loss insurance to be listed in the binder. If you are trying to buy investment property, you will be required to purchase rent loss insurance. The insurance binder is a document that proves that you have a policy and gives a summary of that coverage. The binder states that your rent loss insurance is temporarily in effect until a permanent policy is obtained. You should tell your insurance agent that you require showing the binder at or prior to closing. So I would advice that you talk to your insurance agent to explain your inconvenience and ask him to provide a binder.
We hope that you will benefit from this information.
Please feel free to write back with further queries. Also register with us at http://www.mortgagefit.com/signup/ to get free advice on any other query.
Regards,
Jessica
May I file a claim against my rent loss insurance policy if my tenant is not paying me, and I must go through the eviction process to get the tenant evicted.
Hi,
This type of policy covers loss of rental income if the property suffers damage because of fire or some other kind of damage. I think you will have to get the tenant evicted.
This type of policy covers loss of rental income if the property suffers damage because of fire or some other kind of damage. I think you will have to get the tenant evicted.
Hi Cassandra,
You can have a look at the article on rent loss insurance for more information on how it works and the factors that influence it.
Thanks
Blue
You can have a look at the article on rent loss insurance for more information on how it works and the factors that influence it.
Thanks
Blue
Hi Cassandra,
Welcome to the forums.
I too feel that you cannot claim for the rent loss insurance policy because it can compensate you only in case of loss due to non-payment of rent on account of your property being damaged.
You can go for the eviction but being a landlord, you first need to send your tenant a NOTICE TO QUIT (as per eviction laws). A state marshal should deliver the notice. As per the statement in the notice, your tenant must leave the property within a fixed date. And, the notice must provide the reason for the eviction. I think it will be better if you contact an attorney and take his advice regarding the eviction.
Know more on Eviction from our resources.
Thanks,
Caron.
Welcome to the forums.
I too feel that you cannot claim for the rent loss insurance policy because it can compensate you only in case of loss due to non-payment of rent on account of your property being damaged.
You can go for the eviction but being a landlord, you first need to send your tenant a NOTICE TO QUIT (as per eviction laws). A state marshal should deliver the notice. As per the statement in the notice, your tenant must leave the property within a fixed date. And, the notice must provide the reason for the eviction. I think it will be better if you contact an attorney and take his advice regarding the eviction.
Know more on Eviction from our resources.
Thanks,
Caron.
If i purchase a binder for my home and 150,000 arises, how much will the binder cover
Hello.
How much will the binder cover should be written in your policy. Go through the policy. You will find it out yourself.
How much will the binder cover should be written in your policy. Go through the policy. You will find it out yourself.
how much this rent loss inserance can be ,the property will be rent fo 1200 dollars a month
Hi Guest!
Have you applied for a rent loss insurance? Your rent loss insurance company will help you in calculating the insurance.
Thanks.
Have you applied for a rent loss insurance? Your rent loss insurance company will help you in calculating the insurance.
Thanks.
My mortgage company requires Rent Loss Insurance at the time of closing. I contacted my insurance agent and he said they do not issue Rent Loss Insurance until the property is rented. He said he can provide a quote. I need to get this insurance within the next 2 days. Any suggestions/recommendations where I should go to obtain this insurance? I am in the Grand Rapids, Michigan area. :?:
No, my insurance man said he cannot write a policy unless we have renters. We haven't closed yet and we will be working on the home prior to looking for renters.
Hi DG,
This is where I think the insurance binder can come in handy. The insurance binder will provide a temporary coverage until the permanent policy is issued. Ask your insurance agent to provide you with the binder so you can give a copy of this to your lender at closing.
Thanks,
Jerry
This is where I think the insurance binder can come in handy. The insurance binder will provide a temporary coverage until the permanent policy is issued. Ask your insurance agent to provide you with the binder so you can give a copy of this to your lender at closing.
Thanks,
Jerry
We have just completed a major rehab on our rental home and it is squeeky clean and fresh.
We are screenng for a new 'responsible' tenant.
My question is - can we get rent loss insurance on the property even though we haven't yet placed that new tenant?
We are screenng for a new 'responsible' tenant.
My question is - can we get rent loss insurance on the property even though we haven't yet placed that new tenant?