Posted: Fri Aug 29, 2008 3:05 pm Post subject: My brother-in-law bought an investments
My brother-in-law bought an investments property, which he titled 50% ownership to me if my husband and I moved in and paid mortgage payments to him. He has an H-3 policy on it in his name. I have been told by a friend that we actually need a DP3 policy with both names on it and that my husband and I need a renters policy to cover our personal belongings. Is that correct?
I wouldn't think that you would need a Dwelling Fire (DP) policy. An HO-3 (Special) form homeowners policy requires that the home be owner-occupied, and if you are listed as an owner, I don't see a problem with the coverage.
See DP3 is an insurance policy that would cover for losses arising out of fire, explosives, hailstorms, smoking, hooliganism, sprinkler hole, sinkhole damage, lightning, volcanic eruption on an Replacement cash value basis. In comparison the DP1 covers the same perils for an actual cash value. That is one good reason why the DP3 is more beneficial but costlier.
Hi,
The HO-4 insurance is worthy of the renters. On the other hand the HO-6 is useful for the condo owners. But as you see both HO-4 & HO-6 would protect you for property-damages from the perils that have been mentioned above. Thanx, ArindamSenIndies
From what I can tell, this doesn't deal with a condo...no one is going to write an HO-3 on any condo, so that leads me to assume that we are talking about a house.
The perils covered in a condo (HO-6) and a tenant homeowner's (HO-4) are completely different than what would be covered in an HO-3 form.
Finally, I don't see why the resident of the household, being a deeded owner (based on the OPs original post), could NOT have an HO-3 on the property. You simply have the other owner added as an additional insured, which shouldn't be a problem, and you write the policy.
I'm with you, teach, if the home is owner occupied, and he is not paying rent to the 'other' owners, i don't see why an HO3 wouldn't be the correct choice...
Quote:
I have been told by a friend
I would be curious to know who this 'friend' is, and just how much they know about the correct policy...I'll assume the agent that wrote the policy was fully aware of the occupants status....If you are at all worried, contact your agent again, and go over everything making SURE, that you have correct policy but they wrote it (the carrier) and accepted it after underwriting as an owner occupied policy...so I'm with you, I don't see the big deal. _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
