Can a home be insured by a person other than the person(s) on the deed?
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Asked July 15, 2015
A lot of people in the United State's can't afford to pay their home insurance policy premiums. Although every state differs in regards to the rules and restrictions for policies related to home coverage, a person who is not on a deed, also known as the non-homeowner, can typically set up a policy and make payments for someone else under special conditions.
Strict home insurances rules exist in the United States to prevent a homeowner from trying to commit insurance fraud and/or someone else from benefiting from a homeowner's misfortune without the homeowner's knowledge. The easiest way to remember how home insurance works is to keep in mind that a person can't make a claim after an insured incident unless the person actually owns" the property. As a result, many states do not allow a non-homeowner to set up a policy in his/her name alone. Instead, the homeowner must still be registered as the property owner and the beneficiary of the policy on a policy set up by a non-homeowner.
If a non-homeowner has some sort of “insurable interest” - the person has a legitimate financial stake in the property - both the homeowner's and non-homeowner's names, when permitted, would appear on the policy and any claim payout would be issued in both names. Different insurance companies also have their own restrictions and many refuse to even get involved with this type of co-claim arrangement because of various legal complications.
Another option: If you're interested in helping a friend or loved one, ask the person to set up the policy and then give that person the money when premiums are due, make the premium payments yourself on time manually or make the payments via an automatic payment withdrawal setup through a bank account opened exclusively for this purpose.""
Answered July 15, 2015 by Anonymous