Rental Property Insurance and umbrella policy

[Mrinal Parashar]

Hello, 

I have been using Allstate for the landlord insurance policies so far, but I reached their limit and cannot get any more policies from them. (Location- Atlanta)

What is the best insurance company for landlord policies?

Another question I have liability coverage in all my landlord policies. Should I also get a separate umbrella policy? 

If I get umbrella policy, should I remove liability coverage from the landlord policies? 

[Matt Moylan]

@Mrinal Parashar what you're encountering is very common.  Most companies have a limit of what they're able to offer.

Some companies have a commercial type of policy they can move the policies to, but not all.

There are companies who have a strong appetite for investors and there are also specific rental property programs available.  

I recently helped 3 of my clients find coverage for their portfolios between 10 properties and 51 properties, so it can be done.

My suggestions is to find an insurance broker who works frequently in the real estate investment space, who has the knowledge of coverage, AND the available companies to be able to help you now and as your portfolio continues to grow.

For your second question, I would also 100% suggest looking into implementing an umbrella.  Depending on whether the policies are written on a personal or commercial form type, will depend on your umbrella need.  

If it's personal, usually you have to have your auto and often times your home policy with a carrier to be eligible for the umbrella (but not always)

If it's commercial, it's much easier to only put your rental properties only under the umbrella policy.

Finally, if you have any amount of entities (LLC, Trust, etc.) which own the properties, you would want to ensure the umbrella extends coverage over those entities. Some carriers do and some don't provide coverage.

Hope this helps!