Home Buying in Malverne>Question Details

auwarterdn, Home Buyer in New York, NY

Is there such a thing as rent loss insurance? I am trying to purchuse a 2nd property for my son to rent and wells Fargo is requesting rent loss insura

Asked by auwarterdn, New York, NY Sat Nov 9, 2013

Help the community by answering this question:

Answers

8
Yes there is and it is required anytime you buy insurance for any investment property or a multi-family property. Every lender will require this. In my experience this is standard in coverage for investment properties and multi-family, but when you ask an insurance agent, many have no clue for some reason.

If you need a reliable insurance agent, message me and I can send you a few contacts. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
1 vote Thank Flag Link Sat Nov 9, 2013
As the others say, it's really quite standard. Just ask your agent about it.
0 votes Thank Flag Link Mon Nov 18, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Hi auwarterdn,
Congratulations on your investment. Your standard Dwelling Fire policy will likely cover 12 mobnths of loss rents, some even 24 months. Because your son is the one living there and not a tenant you should be OK with the minimum provided by your policy. There are lots of options that should be discussed with your insurance agent. If you need help navigating through this process you can contact me at 877-880-7340. I am a licensed NYS insurance agent and handle these policies all the time.
0 votes Thank Flag Link Mon Nov 18, 2013
Rent loss insurance part of the home insurance policy purchased for investment properties that are going to be rented out. In case of damage to property due to a covered peril (like fire) resulting in dislocation of tenants and non payment of rents, the insurance policy will provide to stream of income for up to six months. This is required by lenders before your loan will be cleared for closing.
If this information was helpful please select the best answer option.
For any additional help on mortgage or to obtain new mortgage please get in touch with me.
Thanks

Sanjeev Ahuja NMLS # 148731
Mortgage Broker
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Ph 917-517-2552
NYS Registered Broker, Department of Financial Services, Loans Arranged through third parties NMLS # 885573
0 votes Thank Flag Link Sun Nov 17, 2013
I have it and it pays up to six months rent if building is damaged. Was pretty cheap
0 votes Thank Flag Link Thu Nov 14, 2013
Yes, and your insurance agent can provide any necessary clarifications....
0 votes Thank Flag Link Sun Nov 10, 2013
Yes. It is a rider to the landlord insurance policy. It is pretty standard.

Tom Moser
Keystone Realty USA

Long Island's Commission Rebate Realtor
http://RefundAtClosing.com
0 votes Thank Flag Link Sun Nov 10, 2013
Yes, there is. Talk to your insurance agent of your first property.
0 votes Thank Flag Link Sat Nov 9, 2013
Why is it necessary?
Flag Sat Nov 9, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer