A lease with purchase option agreement is a great option for those with no down payment or an inability to obtain a mortgage. This lease option agreement gives you the choice to purchase the home after a period of time. You can pay rent monthly, with a percentage of the payment set aside as a lease fee, or get a credit towards the final purchase price. At the end of your agreement, you have the option to purchase the home.
Insurance is an important thing to consider when entering any lease agreement. The first thing you should do is ask your landlord about coverage for the property. You need to know what the insurance policy covers to help you determine if additional coverage is needed to protect your possessions and property.
Significance Of Homeowner’s Insurance
Most people in lease with purchase option agreements do intend to purchase the home at the end of the lease. It is important to understand that the tenant is not the legal homeowner until they officially purchase the house. Before a tenant purchases, the landlord has to carry homeowner’s insurance on the home for liability and protection against damage.
If the home is damaged in a fire or natural disaster, the policy will pay for any damage. The policy may not cover the renter’s valuables and possessions, however, so renter’s insurance may be needed.
Understanding Renter’s Insurance
If you are renting through a lease with purchase option agreement, you may want to consider obtaining a renter’s insurance policy. This type of policy will provide coverage for valuables like jewelry, electronics, and furniture. Under most policies, coverage is available for incidents such as vandalism, theft, and fire. Unfortunately, renter’s insurance usually does not cover natural disasters or damage caused by the tenant or their pets.
Purchasing Renter’s Insurance
Before you purchase a renter’s insurance policy, compare prices with a few different insurers. Pay attention to deductible amounts and limits within categories. With the convenience of the internet, you can check prices and policies with several different insurance companies from the comfort of your home. Remember to check these out before you enter a lease with purchase option agreement to be prepared.
Buying An Amarillo Home Through A Lease With Purchase Option Agreement
IPS Amarillo offers homes through a lease with purchase option. This type of lease is perfect for people that don’t want to lose all their investments to rent, yet are not quite ready to commit to a mortgage. If you choose to pay an option fee, it will reduce your monthly payment. If you don’t want to pay the option fee, you will get a monthly credit towards your home purchase. Learn more about our Lease Options today!
We have many Available Properties in Amarillo and the surrounding area. For more information about the homes we offer, give us a call at (806) 220-6816 or Contact Us via email. You can also visit us in person at 5701 Time Square Blvd. #340 in Amarillo, Texas.