Two Types Of Insurance You Need For A Hard Money Loan
When purchasing an investment property and want your loan to close fast you will need two types of insurance, hazard insurance and title insurance. In the video below I explain.
So you’re getting a private money loan to purchase a property. You need two types of insurance. What are they? OK. Pretty simple, title insurance and hazard insurance.
What is title insurance?
You’re going to need title insurance for yourself when you’re buying a property. But a lender is also going to want that. And that is going to insure the title against any kind of conflicts that may arise in the future on the title to that property. So that’s the first type of insurance you want when you’re getting a private money hard money loan.
The second type of insurance is going to be hazard insurance. You’ve put all of this money into this property. It’s your baby you’ve put your life savings into it maybe or someone else’s life savings make sure it’s insured. And that is not going to be the same as a homeowner’s insurance policy. OK that you’re getting on your home that you’re going to live in. That’s overkill for an investment property. All you need is a basic hazard insurance policy in place to get your private money loan.
OK. So let’s recap. Two types of insurance you need to get a private money loan, title insurance and hazard insurance.