Car hit my rental property this morning...

[Marc Freislinger]

Great way to wake up, 4:30 phone call from the police because a drunk driver hit my property.

Took out my brand new meter base, isn't even paid off yet.

I got chewed out by the police and others for not having home owners insurance, so I wanted to break this down and see what your thoughts are.

Insurance was costing me roughly $200 a month on my rentals when I canceled it. That was with a $1,000 deductible. So my repair estimate is $2,000, minus the deductible, the insurance company would have paid $1,000. I'd have paid that in only 5 months premiums. It seems like a huge waste.

My concern would be a fire, or other total loss, but how often does that occur?

[Bill Gulley]

Hi, you have a problem! No license and no insurance from either side, all you have left to do is to sue the driver and then attempt to collect yourself. You mortgage holder has the right to require "acceptable insurance", it's in the security agreement (deed of trust), not the note. If you don't carry it they have the right to put a forced place policy on the property to insure only their interests and give you a bill for a much higher premium. Not having insurance will likely cost you when you do put a policy in force, as not having a policy the insurance company will rate you as a poorer risk. You'll need the police report to sue, so make the trip and pay the $5.00. I'd suggest you take it to small claims court, I'm pretty sure you'll win since the defendant probably won't be going to court for a civil suit, he'll probably have other more pressing issues at hand. I have insurance on all my properties, even without a mortgage, and it's a waste of money until a significant loss occurs. It's the cost of an education. Bill