Hi All,
I have a couple of good potential wrap customers who have some
history of minor crime. So far I haven’t found anyone (broker or insurance co) who will take on the house insurance with these people noted with an interest. Has anyone sold properties to people such as these and organised insurance?One idea I had was not to note them on the policy until they actually had real equity in the property (amount owed less than market value) which for the area they are in would probably be five years. After this it would be 10 years since conviction and there should be no problems.
Anyone got a more creative solution?
Rod
Hi Rod,
Interesting post…
My thoughts are that there are plenty of people who are interested in wraps. As such, people may disqualify themselves for any number of reasons – such as a prior criminal history, poor credit history etc.
It’s nothing personal, but I would just say that the risk is too high for the return and then turn my attention to helping other people.
Re: your idea about not putting them on the policy… BAD IDEA! If something was to happen then you can bet the insurance company will find out about it and deny the claim. That’s a risk that I wouldn’t want to invest with.
I think that if you must wrap to these risky leads, then it can only be done so on the basis of full disclosure to an insurance company under the guise of expecting to pay a higher premium. Perhaps go to insurance brokers rather than a company, since I’ve heard of some brokers who are experts at high-risk deals.
Bye
Steve McKnight
**edited to fix up a few typos**
Edited by – [email protected] on 08/08/2002 10:45:09 AM
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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