beware: landlord insurance policies do not cover theft/vandalism

[Bao Nguyen]

I got a call from my tenant yesterday that the bay window in our rental unit has been smashed in by vandalism.  I submitted a claim to Allstate, and the promptly called me to today to let me know that my landlord's policy does not include the "extra provision" to cover theft and vandalism.  $4500 Bay window replacement bill - that's my entire year's cash flow for this unit gone, all because of some technicality that I wasn't even aware of.  Quite upset at Allstate at the moment for not informing me of this to say the least.  I can't help to start to think that insurances are in the business to collect upfront money while focusing their attention on loopholes and technicalities to avoid any payouts.

Perhaps I should get into the insurance business.  

[Account Closed]

As soon as I have no more mortgages on rentals, I will go liability only. Insurance is there to protect the banks against a catastrophic loss. No value to a landlord whatsoever.