Lease Purchase Insurance

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.