All Forum Posts by: Marc S.

The renters insurance covers their personal belongings and accidental damage. I was able to file a renters insurance claim when they disconnected their washing machine on move out and it flooded and their company paid for it. Had it not been the tenants fault and it was just a leak I'd be on the hook.

Landlord insurance is similar to homeowners insurance but less expensive since it does not cover as much. I only have 5k in personal property on my policy to cover appliances so the insurance company has less risk property wise but they are also covering my liability. If you intend to finance the property there is no way you aren't going to be forced to buy this. If you are paying cash but don't feel like you can afford insurance you are not in a position to afford not to have it. If you do not have this you are at risk where if your property is damaged through natural disasters such as hail and tornado's, household issues like electrical fires, or vandalism in many if not most policies as well as liability issues.

A umbrella policy is built to supplement your landlord policy. My landlord policy covers the first 500k in claims and if it goes over this the umbrella kicks in for another 1.5 Mil. These are inexpensive policies since they are just a supplement to your regular insurance and I have to assume rarely used.

I hope this helps clear things up for you, insurance is confusing but necessary to have the proper understanding to protect yourself.

Thank you for clearing that up @Adam Martin. But if you see my post after yours, I feel like I didn't ask the right questions when I called Geico, who I have my auto insurance with or I didn't make it clear that I have a landlord insurance policy. So what you're saying is that I can call them, tell them I have a landlord policy (which I do with Steadily) and they will give me a quote on an umbrella policy?

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I guess the question is, can I get an umbrella policy being that my landlord insurance is on an out of state investment and it seems like I need to have some type a homeowner's insurance on a piece of property that I actually live in first, being that the definition of umbrella policy is to supplement an already existing insurance policy?

I feel I am checking off a box of .0001% of investors, being that 99% of people have a home insurance or renters' insurance and don't live rent free in someone else residence. This is very frustrating...

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Quote from @David M.:

@Marc S.

No, you can't just go adding yourself to other people's policy's. One of the fundamental principals of insurance is having an "insurable interest."

When getting a quote for the homeowner's/landlord insurance policy they should be able to give you a quote for the umbrella policy.

This is where I'm getting a bit confused. I can get an umbrella policy based off my landlord policy? I am under the impression I cannot do that, being that the landlord policy is in Texas and that I need to get an umbrella policy from NY where I'm currently living, but I don't have any property to get it off of.

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Quote from @Chris Seveney:

@Marc S.

That doesn’t seem right - once you get a policy on the house you are buying you can add umbrella to it….

I also believe, but correct me if I'm wrong, since I'm not living there, I wouldn't be able to get a policy.

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@Chris Seveney. I have no plans to get an insurance policy on the rental property as a requirement of the lease is that the tenant obtains renters insurance and currently does. If that answers your question.

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Afternoon BP,

I fear that I know the answer to my issue but want to get the advice of someone who is an expert in the Insurance game. The exciting part is that I am a first-time investor and am in the process of closing on my first ever investment property. I am currently living in NY and am in the option period on a SFH in Texas that will be used as a rental property Investment, that's the good news.

From what I've learned and researched, it is "standard" and smart that I should have an umbrella policy to cover myself for any liability issues that come along with owing a property with renters, here lies the start of my problem. Currently I am living with my in-laws. What I suddenly found out today after attempting to get an umbrella quote is that I cannot get an umbrella policy if I currently do not have homeowners or renters' insurance. Something that may seem like I should have known but am learning about now. The reason I don't have either is that my wife and I are currently house hunting for our own home here in NY and in the meantime, we were fortunate enough that my in-laws are allowing us to stay with them till we do find a home.

My issue now is that I cannot get a quote or a policy. If there is someone out there with the knowledge or can provide advice on how to or if there is even a way to work around this, I would appreciate any and all feedback.

One of the ideas I did have was that currently my mother lives in NY as well and has an apartment that she has renters' insurance on. Would I be able to add myself to that policy which would then allow me to get the umbrella?

Appreciate any help as I don't want this to derail my first RE investment purchase.

Thank you!

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Hi Laura, I just went into contract on a 4/2 in Sherman that is already tenant leased. The economic investment being made there with Semiconductor chip factories was one of the driving decisions of my investment purchase. Not to mention the economic development steps the town is taking in ensuring the growth of town (roads, schools, zoning) stays on par with the future expected population growth and new jobs that are going to be a result of the new factories opening.

There was positive population growth, medium home price growth, low unemployment, good rent to home ratios, and low crime, all of which are factors when I start looking into an area to invest in.

Let me know if you have any questions or need any recommendations.

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Hi Addison!

What software did you end up going with?

I am also in the same boat with my 1st property.

Also, did you ever get a copy of that excel sheet mentioned?

good luck!

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Dayton, Ohio

Quote from @John Morgan:

Quote from @Marc S.:

Quote from @John Morgan:

I have a hard time making the 1% rule. Depends on what the appreciation and what the area looks like for me. I just closed on one in Arlington, TX last Monday that was turnkey for 210k and rents for $1950. I really like the house and potential for the area so I’m ok with it. My last house before this back in March was 214k all in with rehab and rents for $2465/month with section 8. But I’m generally happy hitting close to the 1% rule here in TX.

@John Morgan, what's your thoughts on Celina TX?

I’m not familiar with Celina. I like the DFW area close to downtowns and major freeways. I look for areas with high demand and with affordable rentals. That’s where the high cash flow is and good appreciation.

@John Morgan. Celina is north of DFW..Frisco, Prosper and then Celina...path of progress I've looked into. Just was curious if you had heard of it.

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Quote from @John Morgan:

@John Morgan, what's your thoughts on Celina TX?

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All Forum Posts by: Marc S.

Marc S. has started 42 posts and replied 111 times.

Post: Umbrella Policy Issue

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Post: Sherman, TX market

Post: First time Investor - Property Management

Post: Do you use the 1% rule on your rentals in 2023?

Post: Do you use the 1% rule on your rentals in 2023?