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

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Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Sat Nov 9, 2013
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
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
1 vote
Don Tepper, Agent, Burke, VA
Mon Nov 18, 2013
As the others say, it's really quite standard. Just ask your agent about it.
0 votes
Libbie Cedeno, , Latham, NY
Mon Nov 18, 2013
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
, ,
Sun Nov 17, 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.
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For any additional help on mortgage or to obtain new mortgage please get in touch with me.

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
John Roberts, Other Pro, Island Park, NY
Thu Nov 14, 2013
I have it and it pays up to six months rent if building is damaged. Was pretty cheap
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun Nov 10, 2013
Yes, and your insurance agent can provide any necessary clarifications....
0 votes
Thomas Moser, Agent, East Northport, NY
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
0 votes
Belal Mohd, Agent, Rego Park, NY
Sat Nov 9, 2013
Yes, there is. Talk to your insurance agent of your first property.
0 votes
Why is it necessary?
Flag Sat Nov 9, 2013
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