Is Foremost BASICS Three Dwelling Fire Insurance a good insurance?

[Kerry M.]

Our property started out in very rough condition (no running water, HUD home, some knob and tube wiring.) We are switching from a Vacant and Renovation policy for the last four months to a Fire Dwelling policy. Does that seem like a good idea? What about Foremost as a company?

We do not yet have renters but plan to later. The property used to be a duplex but was sold as a SFH. Our plan is to turn it into a 4 unit. The electric is now updated and metered for 4 units, plumbing redone in PEX and is livable. First goal is to have one of the units done and ready to be rented soon. My son is living at the property also to attend school.
If I buy the 12 month policy will I need to change it again when it has a renter? It says it is intended for 1-4 units and rentals. My question is, is this the right kind of insurance?
Thank you,
Kerry

[Timothy W.]

I'm assuming you're referring to a DP-3 policy. That's good because it's an all perils policy with exclusions rather than a named perils policy. The difference is a named perils policy (DP-1 / DP-2). I have a Foremost DP-3 on mine and I am an independent adjuster (what car does your mechanic drive concept here). Now Foremost uses in house adjusters (unless there's a catastrophe and they need help) while Erie uses independent adjusters. I know because I've settled Erie claims as an independent and I was a Farmers staff adjuster. Farmers and Foremost are part of Zurich and Foremost insures what Farmers won't. Employee vs. Independent adjuster really doesn't matter. It depends on the individual adjuster you get. Farmers and Foremost generally only recruit people with college degrees and do actual background checks on them while some independent firms I have worked with have sent me claims to handle before they even knew how to spell my last name. Some firms have checked me out ahead of time though, in all fairness. Your best defense in all this is to know how to read and interpret your insurance policy. That way you know when to file a claim and how.