Who pays for home insurance when a property is owner financed?

I don't know if I'll qualify for a mortgage, so I'm looking into owner financing to buy a house. When a property is owner financed, who pays for home insurance?

“Typically, the new owner would be responsible for paying for home insurance in an owner-financed transaction. The new owner’s name would be on the title and they would become directly responsible for anything that happens to the home. This is similar to a traditional transaction where you purchase through a bank or a loan company and you have a mortgage.
This differs from a rent-to-own transaction where the original owner would remain on the title, but the rent payments made by the tenant would go towards ownership of the property. In this instance, the owner would be responsible for the home insurance because there has been no transfer of title. “
Jackie Whalen
Answered on Mar 12, 2021
Jackie Whalen has been in the insurance industry for over 7 years, working in sales, service and claims. She has won numerous awards as a top salesperson and customer service agent. She currently lives in New York with her husband. Her 24 year old son recently moved out on his own which has given her more time to travel, write and train her dog Maisy not to chase her cat, Whiskey.

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