Rental Insurance

[David Velazquez]

Hello All,

I have 7 rental properties, most of them are free and clear, I have a liability umbrella policy for all of them, last year I got insurance to cover the interior in case of a fire or anything that may happen to the interior of the properties. As many has pointed out, insurance prices are going higher, I did search for a landlords umbrella insurance but it was impossible since they are on an LLC. what will be the most cost efficient way to obtain rental insurance for all my properties?

[Account Closed]

David, 

Each rental property should have a separate dwelling fire policy associated with it. In the event of a covered loss this policy covers damage to the building, loss of rents, personal property if you have any at the location and premises liability. You can generally select a liability limit ranging from $100,000 to $1 million. Many people are satisfied with this amount of coverage. 

However, You can also purchase a commercial umbrella policy that is shared by all of your rental properties. You can list as many different LLC names as you like as named insureds on this type of umbrella policy.

Obtaining coverage through your homeowners policy is generally cheaper and is an OK option for people just starting out in the business with 1-2 rental properties. However, as your business grows in size and complexity your risk exposures will grow along with it and a commercial policy likely provides better coverage for your growing business.