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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Insurance binder details Posted by Ward-CA- on April 28, 2002 at 4:00 PM In Reply to: Insurance binder posted by Roland J on April 28, 2002 at 3:03 PM : Ward; : On the heels of State Farm announcing they were getting out of the homeowners insurance business, the L.A. Times just came out with a story about surviving insurance companies that issue homeowners insurance policies are now requiring AAA+ credit rating for homeowners policies. I called a few to inquire and they said it was true because recent losses in So. Cal have outstripped their reserves. Not only is AAA+ credit required, if you buy a house at a foreclosure auction or a Tax sale, the only kind of policy you can get is fire, and you must be residing in the property. Vacant properties cannot get a binder of any kind. : Any suggestions as to what insurance companies understand the foreclosure/tax sale game and will issue immediate binders? So far I've had nothing but negative responses. : : Roland J =•=•=•=•=•=•=•=•=•=•=•= Roland, I really don’t see why insurance companies would now require such sterling credit requirements from their insured, especially when they can cancel a policy for non-payment of their premium. If what you say is true, it won’t last long when competition from smaller, less demanding companies comes to the fore. I haven’t been informed by my insurer, Farmer’s Insurance, that I in particular have to live in all of my rentals. They only require that the insured properties are occupied. I get a binder by phone just moments after I buy a foreclosure at the auction. As a consequence I can report to my insurance agent that the property is occupied at that time. I’m of the opinion that it is the insurance agent you’re working with holds the key to giving you a binder or not. So if I couldn’t get a cooperative agent I’d keep looking for one who wants all of my insurance business on all of my 23 properties. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward; : : On the heels of State Farm announcing they were getting out of the homeowners insurance business, the L.A. Times just came out with a story about surviving insurance companies that issue homeowners insurance policies are now requiring AAA+ credit rating for homeowners policies. I called a few to inquire and they said it was true because recent losses in So. Cal have outstripped their reserves. Not only is AAA+ credit required, if you buy a house at a foreclosure auction or a Tax sale, the only kind of policy you can get is fire, and you must be residing in the property. Vacant properties cannot get a binder of any kind. : : Any suggestions as to what insurance companies understand the foreclosure/tax sale game and will issue immediate binders? So far I've had nothing but negative responses. : : : : Roland J : =•=•=•=•=•=•=•=•=•=•=•= : Roland, : I really don’t see why insurance companies would now require such sterling credit requirements from their insured, especially when they can cancel a policy for non-payment of their premium. If what you say is true, it won’t last long when competition from smaller, less demanding companies comes to the fore. : I haven’t been informed by my insurer, Farmer’s Insurance, that I in particular have to live in all of my rentals. They only require that the insured properties are occupied. : I get a binder by phone just moments after I buy a foreclosure at the auction. As a consequence I can report to my insurance agent that the property is occupied at that time. : I’m of the opinion that it is the insurance agent you’re working with holds the key to giving you a binder or not. So if I couldn’t get a cooperative agent I’d keep looking for one who wants all of my insurance business on all of my 23 properties. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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