All Forum Posts by: Brian Armstrong

As an active real estate investor I feel your pain. I'm also an independent insurance agent so I can speak to that side as well. @Adam Martin is correct in cautioning against certain breeds - akita, alaskan malamute, bull terrier, chow, doberman, mastiff, pit bull, presa canario, rottweiler, staffordshire terrier, wolf hybrid ... this isn't an exhaustive list and each insurance company has their own list but it gives a good ballpark for you!
In my state (CO) a landlord can't charge extra nor ban a prospective tenant for a support animal, even if that animal is banned by insurance or local ordinance. It'll be interesting once there's case law to see how we can approach that as landlords.
Successful investing!

I'm glad you trust your agent! I didn't mean to imply you don't trust your specific agent - maybe I should have said "if one doesn't trust one's agent". They're worth their weight in gold, so stick with them! Insurance can be a complicated thing thru which to navigate so trusted advisors are an important part of your team!  

As an active real estate investor and independent insurance agent I feel your pain. I actually had gunfire near a property I own and a bullet went through the front door of a unit, damaging the door, carpet and a few other things. The damage wasn't severe enough to warrant an insurance claim so I just had it repaired out of my own pocket. To @Dennis M.'s point, if you can't trust your insurance agent to guide you thru 'should I turn a claim in or not?' I think you should find another agent. But he's right in saying don't just call the claims phone number and start something - that's a button that can't be unpressed. 

As an active real estate investor I feel your pain. I'm also an independent insurance agent - I recommend searching for independent insurance agents that can help cut your timeline down as well as advise on this complicated subject. That way you don't have to give your info to each company, but rather to one person who would be your primary contact going forward in the future. A good agent will spend more than 15 minutes on the phone (or in person) with you because they're asking good questions to accurately assess your individual needs. I've got clients in Texas, please let me know if I can help point you in the right direction. 

As an active investor and independent insurance agent, I recommend finding an independent agent you can trust that is willing to go as shallow or deep as YOU want to know about your policies. "Independent agent" means they're not tied to just one company and stuck in a box. We can offer the best company for the lowest price that most appropriately suits your individual needs! 

Some specific things I always pay attention to on properties (whether they're owner occupied or investments) are:

 -Max out the liability portion. It's cheap to do and provides double, triple, or 10x the coverage of a base policy.

 -Require renters to obtain Renter's Insurance (with maxed out liability on their policy too) and have the owner listed as "Additional Insured" on their Renters Policy. This protects the renter as well as the landlord. It protects the renter's personal belongings (furniture, electronics, kitchenwares, clothes, etc.) and gives them liability protection. It protects the landlord because if severely damage the property it will hit the renter policy first. It protects the landlord because if their dog or kid or them are liable for an injury on the property it will hit the renter policy before the landlord's policy. It's good and it's cheap.

-Make sure the Landlord policy has "Replacement Cost" on the dwelling. The other option is ACV which basically means it's a depreciated value - that would be a bad surprise.

I appreciate you looking out for and trying to help your family! Great job @Jacob Stoecker! If you have any other specific questions feel free to DM me :)

Not sure what all options you have in NJ but I'd recommend finding a local independent agent so you don't have to do the shopping. Here in CO we use Foremost, American Modern, and Berkshire Hathaway.

Best of luck!

As an independent insurance agent and active investor I woulnd't recommend this business model regardless of which hat I'm wearing. As an investor I wouldn't allow my property to be sub-leased by people who I haven't run background checks, have zero recourse against, and have the issues mentioned above as well. As an insurance agent the liability is extremely high and I can't imagine finding any policies that would make it financially feasible.

Local municipalities also have regulations regarding short term rentals so that could be another hurdle depending on your city/state/HOA/etc.

To answer your question directly, since you have no insurable interest in the property you wouldn't be able to purchase the necessary landlord insurance policy to cover the property for short term rentals. 

Best of luck and I like that you're thinking outside the box

Hi @Rik Shaw, 

You'll want your insurance agent to spend some time with you - afterall, 15 minutes could expose 15% of your net worth, or more!

As an independent agent and active investor I like to make sure I have as complete of a picture as possible to make sure my clients are protected well. Everyone's situation is different and each property is different. If they're not asking specific questions, I'd move to the next person. I like being independent because it means I have lots of companies and lots of options - I'm not stuck in one box. Plus, then after just one conversation with a client I go do the shopping at lots of companies rather than you having to dole out the same info over and over again. 

There are lots of people who can help here at BP, I'm happy to be of assistance.

There's not enough information above to decide if those are good rates. There are SO many other pieces to a Landlord policy than just dwelling amount and premium!
-Replacement Cost on dwelling
-Additional Replacement Cost on dwelling
-Personal property for the landlord (appliances, window coverings, etc.
-Amount of Liability (buy the max - it's only a few dollars per year)
-Water & Sewer backup
-Ordinance & Law 
Not to mention the company's record/reputation/history of paying claims!

As an independent insurance agent and active investor, I'd be happy to look over a proposal to make sure you're covered well! I'd like to make sure the asset you've worked so hard to earn is protected well!

Successful Investing,
Brian

Ask the agent a lot of questions:
-What's your company's record of paying claims?
-What's the claims process like?
-What's the agent's role if I have a question about turning a claim in?
-What's the agent's role if I need help during a claim?
-What's your company's financial status and AM Best Rating?

Depending on the size (5+ units) Country seems to be good with multi-family right now. If it's 4 or less units, I would advise finding an independent insurance agent that will advise and advocate for you. Find someone you know, like, and trust to do the right thing, put you in the right position, and protect what you've worked hard to earn! 

I'm an active investor and feel your pain when trying out a new company - I like companies who I know I can count on ... even if it costs me a few more bucks per year!

Successful Investing,

Brian