HOI on investment home that's paid off

[Josselyn Jorge]

What recommendations do you have for insurance on a triplex that's paid off in Miami, FL? As you know the rates in Florida are out of control. Some people have opted for no insurance while others have opted for fire protection only.

[Bill B.]

If you’re even considering this look around for something with a $10-$20k deductible and see if you can cut it in half. I’d rather sell than go without any insurance. Everyone talks a big game until they lose a couple hundred thousand to save $20k. 

[Kevin Marshburn]

You need to carry insurance, especially since there may be renters given it's a triplex. Send me a PM if you want me to recommend a good South FL insurance agent who can work with you on less expensive policies with larger deductibles, etc. The potential risk you're taking on is not worth the cost savings IMO. 

[Chris Seveney]

Quote from @Josselyn Jorge:

What recommendations do you have for insurance on a triplex that's paid off in Miami, FL? As you know the rates in Florida are out of control. Some people have opted for no insurance while others have opted for fire protection only.

 I would get insurance with an umbrella policy and a high deductible. As others mentioned if a flood or something happens, that is an expensive mistake. Also since its a rental you definitely want umbrella coverage as if someone trips and falls, you would not be covered by insurance and could be on the hook

[Owen Rosen]

Quote from @Chris Seveney:

Quote from @Josselyn Jorge:

What recommendations do you have for insurance on a triplex that's paid off in Miami, FL? As you know the rates in Florida are out of control. Some people have opted for no insurance while others have opted for fire protection only.

 I would get insurance with an umbrella policy and a high deductible. As others mentioned if a flood or something happens, that is an expensive mistake. Also since its a rental you definitely want umbrella coverage as if someone trips and falls, you would not be covered by insurance and could be on the hook

 Chris-

Not sure what you mean by any of this...are you an insurance agent?

1. Rental property insurance (or home insurance) doesn't cover floods

2. Why would rental property insurance not cover him if someone trips and falls?

3. Why do you think an umbrella is needed for these things?  Do you know how an umbrella policy works?

[Chris Seveney]

Quote from @Owen Rosen:

Quote from @Chris Seveney:

Quote from @Josselyn Jorge:

What recommendations do you have for insurance on a triplex that's paid off in Miami, FL? As you know the rates in Florida are out of control. Some people have opted for no insurance while others have opted for fire protection only.

 I would get insurance with an umbrella policy and a high deductible. As others mentioned if a flood or something happens, that is an expensive mistake. Also since its a rental you definitely want umbrella coverage as if someone trips and falls, you would not be covered by insurance and could be on the hook

 Chris-

Not sure what you mean by any of this...are you an insurance agent?

1. Rental property insurance (or home insurance) doesn't cover floods

2. Why would rental property insurance not cover him if someone trips and falls?

3. Why do you think an umbrella is needed for these things?  Do you know how an umbrella policy works?

 I think you misinterpreted my statement: without insurance if someone trips and falls and sues, or just feels like suing the original poster - if there is no insurance in place the owner is responsible

[Owen Rosen]

Quote from @Chris Seveney:

Quote from @Owen Rosen:

Quote from @Chris Seveney:

Quote from @Josselyn Jorge:

What recommendations do you have for insurance on a triplex that's paid off in Miami, FL? As you know the rates in Florida are out of control. Some people have opted for no insurance while others have opted for fire protection only.

 I would get insurance with an umbrella policy and a high deductible. As others mentioned if a flood or something happens, that is an expensive mistake. Also since its a rental you definitely want umbrella coverage as if someone trips and falls, you would not be covered by insurance and could be on the hook

 Chris-

Not sure what you mean by any of this...are you an insurance agent?

1. Rental property insurance (or home insurance) doesn't cover floods

2. Why would rental property insurance not cover him if someone trips and falls?

3. Why do you think an umbrella is needed for these things?  Do you know how an umbrella policy works?

 I think you misinterpreted my statement: without insurance if someone trips and falls and sues, or just feels like suing the original poster - if there is no insurance in place the owner is responsible

 That would definitely be true but I think if you read what you wrote you'll see that isn't what was coming across.  I do agree it's a good idea to purchase insurance and not go without.

[Robert Ellis]

Quote from @Josselyn Jorge:

What recommendations do you have for insurance on a triplex that's paid off in Miami, FL? As you know the rates in Florida are out of control. Some people have opted for no insurance while others have opted for fire protection only.

 all insurance you can get is worth it I wouldn't recommend anything else but that. flood insurance, property insurance, all forms of it minus acts of terrorism especially for miami. 

[Michael Haynes]

Josselyn Jorge in Miami with a triplex that's paid off! Here we go again..."Your sitting on a Gold Mine!" SEll SEll SEll. Miami just had the biggest rain event in history without wind damages. Not one of these BP members told you that Governor Ron DeSantis made a law this year that requires everyone with a mortgage to carry Federal Flood Insurance in two years. Anyone who has Home Owner's through Citizens has to have Flood now if the property is worth more than $600,000 and everyone else next year. There is a difference between Wind or Water Damages. Your triplex is paid off? Do you own a Home? Move into the triplex for two years and use IRS Publication 523 Sale of a Residence to not have to pay some of the Cap Gains when you Sell. If your Tax guy does not know this, find another who does. 

[Josselyn Jorge]

Hey Michael, thanks for your response. I just inherited it a few months ago and unfortunately I can’t move in because I live in Orlando. Any additional suggestions?

[Michael Haynes]

Hello Josselyn in Orlando. You can do your own research and see what the Government gives you for Tax-deferred and Tax-free Sales of multi-family properties. That is like 1031 Exchanges that you can do with a good Title Company who has that Department. In Tampa I had Rental Duplexes and Houses in S. Tampa for 30 years and I did three Sales of my Residence, Tax-free before Covid. One of them brought me and my girlfriend $I00,000 to split. I would not Buy property in Miami right now, especially with the Condo Crisis. I think Absentee Landlord is one of the easiest ways to lose money for the individual investor. I paid All Cash for a 3/3 Townhome in a like new small Community with garage and pool in Valrico for $173,000 and it went up to $320,000 the first year of Covid. The rest of my Cash is invested with Monthly 5.2% T-Bills. Watch, "Orlando Fl Housing Forecast for 2024 (from Reventure Consulting). Nick has the best Data with easy to understand graphs and charts for each City, Area of the big Cities, County, State and whole Country with ReventureApp.com and its free unless you want a personal conversation.