House Insurance Comparison

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  RetiredDebtFree posted: 09 Aug at 4:42 pm

  Yes you can, but only with the Seller’s knowledge and permission. The insurance company will want to know what the relationship is in this case.

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  Chris C posted: 09 Aug at 5:35 pm

  Yes, you would be able to take out an insurance policy on the seller. There is insurable interest between you and the seller since you have entered a ‘business agreement’ of sorts. The seller would have to agree to it and participate in the underwriting process (go through the application, meet with a paramed if required, etc).

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  Doctor Deth posted: 09 Aug at 5:54 pm

  you have ZERO financial interest in HIS life – if he dies – YOU are the ones that have to come up with the money to pay off your “seller financed mortgage”or the house will revert to HIS estate.

  why should YOU benefit by HIS death?

  why would he approve of such a thing??

  it makes no sense to do that and it most likely would NOT be allowed

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  mbrcatz posted: 09 Aug at 6:26 pm

  What exactly is the insurable interest? If your paperwork is done correctly, I’m not sure you have one – if the seller dies, you just keep paying the estate.

  In any case, as long as you can convince the underwriter you have an insurable interest, and as long as the seller is willing, you can do it.

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  Caveat Emptor posted: 09 Aug at 6:43 pm

  No. You have no insurable interest if the seller is in fact your lender.

  If the seller (your lender) dies, your loan would then belong to his/her estate and be passed in accordance with his/her estate plan. But the loan remains valid – the only change would be who you make the payment to. It would be like one lender selling your loan to another.

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  Insurance Pickle.com posted: 09 Aug at 6:53 pm

  Yes, you have it backwards. The seller would want insurance on you…not the other way around. If he dies then you don’t lack the ability to keep paying. But, if you die…you do.

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  Flower posted: 09 Aug at 7:21 pm

  What !! Is he a relative or something? Why would the seller make you the beneficiary? Seller has to sign the paperwork. You cannot take out a policy on him without his agreement.

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  Kor posted: 09 Aug at 7:55 pm

  what you meant is that you bought a house and the seller is lending you money which means that instead of a mortgage loan from bank, it is a mortgage loan from the seller and you are paying the seller in instalments? then you have no insurable interest on the seller.

  you had entered into contract with the seller when you buy the house and took the loan. he should buy insurance on you and not the other way round. unless you guys have no contract, then you don’t legally own it and you still have no insurable interest. actually i think most of us doesn’t know why you want to buy insurance on the seller?

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