Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago,

User Stats

30
Posts
36
Votes
Jonathan Williams
  • Investor
  • Houston, TX
36
Votes |
30
Posts

Insurance on a pig in Houston

Jonathan Williams
  • Investor
  • Houston, TX
Posted

Hi BP community. I just picked up a property at last month's Harris County tax auction (zip code 77007 of Houston, TX). The property has two humble SFH's on it, both tenant occupied. I've met with the tenants and it appears we'll be able to keep them and get them under lease shortly.

Here's the dilemma. We purchased the property for the lot, with plans to develop the lot in the next 12-24 months. Unlike other development deals I'm working, this one currently has $900/mo gross rents coming in while we go through planning/permitting to more than offset taxes/insurance, which along with the fantastic location is why I particularly liked it. Things are tightening here in Houston on condo sales, so I want the flexibility to execute the development if things look good at that shovel-ready point...or not, if they don't.

These two "humble SFH's" are not insurable (at least I don't think). There are no active leaks in the living spaces, but the roof is certainly compromised over a porch and the siding is in terrible shape. The tenants are happy enough with the houses and perform minor repairs themselves as needed. We are currently landlords on other properties and take great pride in maintaining our properties, but for a property that we plan to demo in short time with acceptable tenants MY QUESTION IS:

What do you recommend for insuring such a property? 

I'd like to just get tenants on a month-to-month lease and insure the property for liability. It's cheap, and insuring with a dwelling policy for replacement just doesn't seem to make sense. Plus the insurance co. will almost certainly require me to make some major repairs that aren't justified for reasons I've explained above. So I call our insurance co. and they say they can't extend liability on a home that isn't insured with dwelling? Then I ask about our umbrella with them which covers above/beyond what our primary policy covers, but same story...if we don't have dwelling on it, our umbrella wouldn't cover legal fees, etc. that Landlords lean on umbrellas for.

Any ideas? I can't justify anything expensive, and my primary concern is liability coverage.

Thanks!

Loading replies...