Lease Purchase gone bad.

It has happened again.  A Lease Purchase in TX had a tenant whose home burned.  The cause of the fire is suspected to be a result of the tenant’s negligence. 

They had too missconceptions:

1. They did not need insurance.  The reality is the lease purchaser MUST have insurance to hedge themselves from losses caused by negligence or “acts of god”.  In this case, the insurance company and the owner are now sueing the tenant for accidentally burning the home.  The Lease purchaser is having to file bankruptcy to rid themselves of this “debt”.    Even if the fire was NOT the tenant’s fault, the financial drain has continued to position the ability to close more and more out of reach.
2. The Lease Purchaser believed that the landlord’s insurance protected them.  This can not be further from the truth.  Even in a sitiuation where the home is being purchased with a “contract for deed” insurance that the landlord owns will not provide coverage for the tenant.  (note: contract for deed sales are insured differently based on State.)

Be insured!  It is the EASIEST way to position yourself to close even if you experience a major losses.

Have comments or questions?  Please feel free to ask right here online.  Or Call our office at 1-877-MattLocke or get a quote for coverage by clicking here.

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Policy pricing is based on 4 factors:

1. How much coverage is needed

2. The type of home: Apartment, Townhome, Condo, Single Family

3. Location of the home: Close to fire departments or in high crime areas

4. The loss history of the applicant

5. Lastly, more and more companies are basing the policy price on the applicant’s payment history, indebtedness, or credit score.

The purchase process is simple:

· Take the application verbally over the phone or via the internet quote form

· Review the application via phone and e-mail or fax

· Approve the pricing and coverage

· Make an initial down-payment (complete)

· Return via fax or mail or e-mail a signed application.

This is the most IMPORTANT coverage in the Lease Purchase Insurance policy.  (get a quote by clicking here)

You have a 401k or Retirement fund or a Credit Score that you are trying HARD to protect…

The Liability protection is key to your succeeding in the event of a major loss.

Example: You have a policy and accidentally cause a fire in your home.  The fire was small and caused 40-70,000.00 dollars of damage.  Do you have the funds to pay that?  The apartment or Landlord’s policy will pay for the damage.  But once they find that YOU were “at fault”, a lawsuit will be levied asking for you to repay the damage.

A lawsuit could jeopardize your retirement funds or position a filing of bankruptcy in order to rid yourself of the debt.

Having a Lease Purchase Insurance policy could position you with the liability protection to reimburse others for the loss you caused them.

Liability Protection… It is MORE IMPORTANT than you may consider.

Start by getting a quote by clicking here

Guest Medical coverage is the coverage that most believe is “worthless coverage”.

Why is Guest Medical on a policy?  The goal of the coverage is to position funds for a Guest’s loss without the guest bringing a lawsuit for reimbursement.

A policy traditionally comes with a $1,000.00 limit.  For $9.00 more a year, the Guest Medical coverage can have a limit of $5,000.00.

A lawsuit may be avoided with guest medical coverage.  Having the extra level of coverage may help keep the stress of a lawsuit from being a reality.

Start by getting a quote by clicking here

After a major loss, the expenses add up quickly.  Lease Purchase Insurance provides protection beyond the possessions you own.

“Loss of Use” positions the insured with funds to make up for the additional expenses when living at the residence is not permitted due to a covered loss.

A fire from a neighbors unit, a storm causing damage to your unit– These are examples of how you could be positioned to make a claim for “loss of use”.

Most of us believe that it will “never happen” to me.  Having coverage prior to a loss is key to your surviving a loss that should have happened to someone else.

Start by clicking here for an online quote

Working towards the purchase of your home?  Are you lease purchasing?

Lease Purchase  insurance is for anyone who is lease purchasing a house, condo, or manufactured home.

Lease Purchase insurance can protect your personal property against loss– Like: fire, theft and vandalism.  (get a quote by clicking here)

Protection for your property has two levels of protection available:

1st- There is a general level of coverage.  This level of coverage is generally intended for All of the possessions in the home.

2nd– There is added protection for items of higher value like Jewelry.  This coverage is call “Scheduled Personal Property”.  If you have items of “higher value”, review that with Matt Locke during the quoting process.

Personal property protection does extend outside the doors of your home.  The coverage also protects the property in your car.  In the event your car is broken into and your property is stolen, renters insurance positions you and your family protection.

(get a quote by clicking here)

There are two angles to the lease purchase equation.  Get  a quote

Angle one is protecting the credit of the lease purchaser. Imagine lease purchasing a home and putting up your security deposit for the rental and then putting up additional dollars as a down-payment for the future closing.  Now, you as a tenant make a small mistake and cause a kitchen fire.  The loss causes $10,000.00 in damage.  How do you as a tenant now pay for this loss while at the same time positioning yourself for the funds to close on the house?  If you can not close in the time allowed, do you get your money back?

Many lease purchase contracts do not provide refunds of down-payments if the purchaser can not close within the time allotted.  If the tenant causes a loss, they are liable for the cost of the damage.  A lease purchase policy can position coverage for those accidents and still permit the tenant to make head-way towards the closing.

Angle two is protecting the ability to purchase by the lease purchaser. This story will give you understanding to this perspective.  A family inherited a home after the death of a parent.  The home was in rough shape so they chose to sell the house on a lease purchase contract.  The tenant put up 12,000.00 as a down payment and the money was used to renovate the home.  A few months later, a storm produced lightning and the house burned to the ground.  No fault of the tenant and the tenant had insurance.   The homeowners on the other hand never bought insurance on their free and clear home.  Now, the financial condition of the homeowner just got worse and the lease purchaser is out $12,000.00.  There is no money to rebuild.

The Lease Purchase Insurance perspective is simple.   The lease purchaser needs to hedge thier purchase position by adding their name to the homeowner’s policy as an “interested party”.  Now, if the homeowner chooses to NOT maintain their policy, the lease purchaser is notified of the homeowner’s policy status.  A lease purchaser contractually is positioning to purchase the home.  They need to make sure the home is insured and stays insured until they close.  The lease purchase contract needs to include the requirement of the homeowner to maintain insurance and the requirement of the lease purchaser to be added to the policy as an “interested party”.

Lease Purchase Insurance is a product and a concept.  Both of these issues position the parties to be successful as they work towards the closing day.

Get a quote for lease purchase insurance today by clicking here.