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Friday, October 31, 2008

The joys of insurance

Today I discovered the reality of owning a house. I suppose I had some vague idea of the insurance web that I would be entangled in, but three different insurance policies on one house/rehab venture??

1. Home owner's insurance. Makes sense--it would be terrible if the house suddenly burned down and I didn't have it insured. It'd put a definite damper on the project.

2. Liability insurance. You know, for the random passerby who's looking at the newly installed rain catchment/greywater recycling system and isn't paying attention to the fact that the sidewalk has actually come alive and mysteriously decided to attack his/her left foot, latching on so the person smashes face first into the ground, knocking out two front teeth and having the angle of their ankle oddly resemble L'Arc de Triomphe.

3. Liability insurance#2. If you are ever thinking about involving the community(heaven forbid), be sure to insure yourself because when someone hits themselves with a hammer while working on your property, you're at fault. Who knew you could be responsible for other people's mistakes?

So I was on the phone with the insurance company for about an hour, explaining how I need insurance, but with the way the in rem auction and deed transfer works I technically don't get the deed for another month. Yet according to the city of Buffalo, even without the deed I am responsible for the property? Weird. Anyway, after all of this the insurance guy asked me, "You stressed yet?"

To that I simply replied, "it's all a learning experience." Now I know--insurance is a necessary evil. At least I'm warned for the next time I want to purchase/rehab a house.

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