Should I buy Home Owners Insurance or Renters Insurance?

I am buying a home on a land contract. Should I get home owners or renters? Also if I take the insurance does the owner have to carry a policy too?
Answers:
You can't buy homeowners unless you own the home. You do not have an insurable interest contained by the property. You need to purchase a renters policy with liability coverage within it while you live at, and rent the property. You should consult an insurance agent. If you are a renter, it is up to the owner to insure the property. If the owner has paid bad the property, he is not compelled to purchase a homeowner's policy. However, he is subject to liability ( someone trips and falls for instance) and of course, he could always lose the property ( fire, for instance) so most landlords hold coverage.
Some leases actually state that the renter is responsible to replace the property within the event he is at fault for damaging it ( you hold a kitchen fire, for instance). Don't sign such a lease. No renter's policy will replace any property that you don't own. It is a big mistake to sign a lease that makes you responsible for the Lessor's obligations. Source(s): have a real estate and insurance company- retired now...
Well, you need to agree about it to your agent.

*I* always recommend that the deeded owner buy the policy. On that parkland contract, that's going to mean the seller, until that creation gets turned over.

HOWEVER, that doesn't protect your interest in the house, as if the place burns down, and the owner get the money and walks away, you're SOL.

Frankly, I don't like domain contracts too much - if you rely on the owner to carry the coverage, the tenant/buyer can get burned. If the owner relies on the tenant/buyer for the coverage, the owner can achieve burned. If you BOTH carry coverage on the house, come claim time, you'll each grasp paid your share based on how much you insured the house for.

So if you, the tenant/buyer are asking what is surrounded by YOUR best interest, it's for YOU to carry the coverage, at your cost. One way or another, adjectives the insurance and property taxes are going to end up at your cost, anyway. Source(s): agent, 21+ years
Until you pinch title, you are renting/leasing. Property owner needs to carry the homeowners insurance untill you appropriate actual title in most states. MI, I believe, occasionally puts a LC buyer in title; contained by the end, check with your state insurance ancestors to be certain.

Who pays what should be spelled out in the stop contract. each is different. usually you pay the renter and they salary the owner; but I've seen it done where the buyer (you) pays both as expressions of the agreement. A land contract is not a standard real estate purchase agreeement. EVERYTHING have to be spelled out up front and written in.
If you own the home, ie, the structure and content of the house, you should buy homeowner insurance. When something fruitless happens to your house, the insurance company will pay for rebuilding the house. Renter insurance is for content and 3rd celebration liability. I think you should buy owner insurance. Source(s): http://www.angelinsuredeal.com


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