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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 33424
Experience:  Began practicing law in 1992
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I am under a landcontract for 14 properties and have not had

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I am under a landcontract for 14 properties and have not had insurace for about 12 months. The property owner's are asking for my insurance declaration page for a business purposes that shows they are the loss payee. How can I start coverage again? What does it mean "shows as the loss payee"?

JD 1992 :

Hello and thank you for contacting Just Answer. I am an expert here and I look forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.

JD 1992 :

First, go to an independent agent. They can assist in figuring out a company or the plan that will provide insurance.

JD 1992 :

On the second issue, the "loss payee" is the entity/person that is paid if something happens tot he property.

JD 1992 :

You said you have a "land contract". Is it just for land or does it have structures on it as well?

Customer:

The independent agent I contacted said I can only get insurance through The Ohio Fair Plan with no liability and can not get liability for the contract owners. Is it that this particular agent can't help or is that the law? Land and structure. I am purchasing 14 properties from my partents on land contract. They have no idea I am deliquent on my insurance premiums and now they need proof for a bank proposal showing they are the loss payee? I am shamed and need help.

JD 1992 :

That is "kind of" the situation but not the law. The Ohio Fair Plan, unless it has changed very recently, did not provide liability insurance because it is a governmental plan and that wasn't one of the purposes. The other companies aren't prevented from providing liability insurance by the law, they are just choosing not to do so.

JD 1992 :

However, they wouldn't be loss payees on a liability policy, only on a property damage policy.

JD 1992 :

There is no loss payee on a liability policy since what it does is provide insurance in case someone is injured or damages on your land.

JD 1992 :

I would imagine that if you look around some more you can find an independent agent who can provide liability insurance or possibly liability insurance along with umbrella insurance from one of the smaller companies.

JD 1992 :

Liability and property damages are not the same type of insurance.

Customer:

So it is trail and error to find one who will write a policy? So what is the proper terminology to ask an agent to write that will show "loss payee". So the umbrella insurance covers them?

Customer:

I ask for coverage with an umbrella policy?

JD 1992 :

Yes, you will just have to keep looking, you may even want to look online. You want a property damage policy that provides protection to a loss payee.

JD 1992 :

Then on the other issue you would want a liability policy and, if necessary, an umbrella policy to go with it.

Customer:

My immediate concern is having disaster recovery insurance and them what ever it is to show "loss payee".

JD 1992 :

At this point you are dealing with a company's rules and not the law.

JD 1992 :

Disaster recovery would be yet another type of policy.

JD 1992 :

Who mentioned that you needed to have liability insurance?

Customer:

I am not using the correct terminology.

Customer:

I care more for structure coverage and to show "loss payee" but don't know what type of policy that is called.

JD 1992 :

Just one sec.

Customer:

No one said liability I just think it is the smart thing if a tentant tries to sue me? I am recovering from tornado damage repairs from my previous plan @ 2500 deductible per property and it caused me to go deliquent on my policy. I am quite sure I had complete coverage before and I need to get back on track.

Customer:

I just don't know who to call.

JD 1992 :

Liability is smart to have without a doubt. What your parents likely need, since they mentioned loss payee, is the property damage policy and that would be the one through the Ohio Fair Plan.

JD 1992 :

Use independent agents.

JD 1992 :

Let me list out what you need to consider so it's clear.

JD 1992 :

1) Insurance to cover damage "to the property" in the event of fire, etc.

Customer:

Oh, ok .................can you help me through this conversation with my dad? I am so sick!!!!!

Customer:

That didn't come out right.

JD 1992 :

2) Liability insurance for the same property to cover you and your parents if anyone is hurt on the property.

JD 1992 :

3) Disaster recovery insurance (maybe)

JD 1992 :

4) An umbrella policy if it is necessary to get the liability issue covered.

Customer:

But if I am stuck with The Ohio Fair Plan they will get what they need?

JD 1992 :

Yes, they should.

JD 1992 :

Also, when in doubt insure for a little more than a little less.

JD 1992 :

When you talk to the agent just stress that you need insurance to cover the loss of any structures on the property and that your parents are the loss payees.

Customer:

Ok thank you. So, I will just need to search independent agents and hopes to find one that will write me a policy? But, could be there my only option is The Ohio Fair Plan?

JD 1992 :

Yes as to the independent agents and it is likely that since the property has been uninsured for so long that the Ohio Fair Plan is the only one that will cover it for a year, then you can switch to something else.

Customer:

Sorry for the terrible english. I am reading how I wrote my questions and I obviously haven't proofed read my questions.

JD 1992 :

No problem, I think we got there anyway.

JD 1992 :

Once you issue a Positive Rating this question will change formats. What you may want to do is print this out when it changes using your browser print function and then take it with you to the agent's office.

Customer:

Yes, thank you. I just need to take care of my parents..........that's my problem. I just wanted to know if I am SOL because of the time lapse and what if I can get what they need for their business plan.

JD 1992 :

You should be okay.

Customer:

Thank you JD 1992.................a very good year :-)

JD 1992 :

You're very welcome!

JD 1992 :

Best wishes to you on this and please don't forget to leave a Positive Rating (of course I’d suggest Excellent!) so I get credit for my work. The website only gives credit to the expert if you give a Positive Rating.

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