All Forum Posts by: Aaron Porter

@Nate Cade  -@Kevin Hoag is right in what he is saying. a few carriers in Georgia asked for an almost 300% increase.  there are lots of reasons that carriers do this, cost of materials and labor increasing in relation to claims, cost of internal labor increasing (the insurance carriers are having to pay their employees more), a certain area has a higher than projected loss, and also just normal rate increases.  

almost every carrier increases premium rates every year, but there is a silver lining.  property and auto insurance is cyclical for carriers meaning that this year maybe Allstate is the cheapest in your area, next year it will be Progressive, the year after is Travelers.  Then in 5-7 years Allstate will again be the cheapest.  

This is why it is good to work with an independent insurance agent who has access to multiple carriers and can shop your rate every year at renewal time.  Thus making sure that you are not paying too much for your insurance coverage, and making sure that you are carrying enough coverage so that if you have to make a claim that you aren't going to get left out in the cold.

I partner with a company that sets up ownership structures to limit liability, create anonymity, and strategize the taxes, and set up your estate plan. All of their clients are real estate investors who own on average 3-5 rental properties. The way that they set up the asset protection structure dumbed down is the properties are owned by individual land trusts, which are owned by series LLCs which are owned by another trust, and you use a separate LLC for the active business management of the properties. This is a very dumbed down version of it. But they have found it to be the most reliable system for not only avoiding issues with tenants possibly suing the landlord but also creating the most advantageous tax structuring and setting up your heirs for when you pass on. @Jason Marino  is one of the attorneys that works there.  He would be able to give clarity.

From the insurance side the best practice in the industry is to have a well set up dwelling policy that will cover the property incase of fill in the blank.  and also utilize an umbrella policy to give you extra liability coverage which can extend over not just your rental properties but also your personal properties and auto policies.  Work with a good insurance agent who knows the needs of a real estate investor and can set up you with a policy that covers you for your level of risk.

To my knowledge there is nothing like that available.  you could get some kind of landlord policy that could pay lost rent but that is usually only something that you could use if your property was damaged to the point where it is deemed unlivable.  

having vacancies is part of being a landlord and should be considered a part of doing business.  

@David B. You are correct in your thinking that.  When a property is unoccupied for a period of time usually around 60 days your insurance carrier deems that as a vacant building and will lower the coverage on that building substantially.  every carrier is different in how much and in what categories.  the best thing to do would be go to your agent and pose the question to them.  They can look at your homeowners policy to see what would or wouldn't be covered in your case.  

As far as finding a contractor I would definitely get someone who is licensed and bonded to do the work, get a contract and don't pay for work that hasn't been done.  and like @david doucet said google is amazing and read the reviews.  you can even contact the people that left the review to gain more insight if needed.

There are many companies that will write that.  Some of the big ones are Allstate, SafeCo, and Travelers.  Find yourself and work with an independent insurance agent that has access to multiple carriers.  We have clients that have properties in multiple classes of business and have no issue getting insurance for them.  

Over the last few years we have seen huge increases in property insurance premiums... on top of that there have been a large number of carriers either go insolvent or shut down their operations in the gulf coast areas especially Florida which has suffered catastrophic losses due to hurricanes.  So I don't think it is out of the realm of possibility to see premiums continue to go up in those areas that are prone to violent storms such as hurricanes.  

In one of the storefront businesses that I used to own I went to Costco and purchased a 8 camera UHD security camera system with a DVR. I don't have any experience with Ring cameras but they are very popular. The only thing is that cameras will not get what ever is stolen or vandalized back.  

In my store I had 6 break-ins in less than 3 months.  Every time we got the culprits on camera with sound talking to each other and calling one another by name.  however the police and court system refused to prosecute them and I was never reimbursed for the $$$$$$ of merchandise that was stolen.  My insurance carrier also deemed each break-in as a separate instance so it wasn't worth it to me to make any claims against my insurance policy. 

As far as running the expense through your insurance... definitely consult with your agent to see what the ramifications will be from making the claim. I would guess that your deductible will be as much as the replacement value of the tools that were taken.  So that may be something to take into consideration.  Also your policy costs wont go up during your current contract term but you can definitely expect to see your premium go up for at least the next 3 years after having a claim.  

@Rhett Ruehle  Cash Value Life insurance products are awesome and can create some really unique growth opportunities for your financial portfolio.  Every different policy type has its place and fills a need.  Kind of like using a pipe wrench instead of a pair of pliers.  Both will work but each one has a specific thing it does better than the other.  

Keeping your goals in mind is the best way to build a plan that will help you achieve those goals.

@Matt Ridenour  I know that Royal Legal Solutions has a CPA on staff that specializes in tax strategy and planning and he and his team work exclusively with real estate investors.  His name is Pete Schindle.  I don't think he has a BP account right now and I am unsure if I can post his outside email in the thread so if you want to shoot me a direct message I can send it to you. 

@Cameron Hillebrand  We write with lots of different carriers but I know that SafeCo, Allstate, and Travelers will write this risk.  You may have to go through an agent to get a policy like this.