All Forum Posts by: Curtis Curley

Curtis,
As several others have mentioned, the most common form of policy used for single family rented properties is the Dwelling Fire policy (form DP3). Below are some of the coverage and options to consider:

1. Building Coverage: if available, get Special Form (sometimes called "All Risk") and the coverage should

be Replacement Cost coverage.

2. Contents Coverage: If you are renting the units with Appliances, Furniture, etc. you need to cover the value of those

items. the coverage should also be at Replacement cost. The most common level of coverage is "named perils" which

is not as good as "special form". Some companies will quote both.

3. Loss of Rents/Income: Make sure the coverage is enough for 12 mos of rental income

4. Liability: I recommend maximizing the coverage under the policy (that would be $500,000 or $1,000,000 for

most polciies. I normally recommend an Umbrella policy as well. That can give additional coverage if the the

liability limits of the underlying policy get exhausted. The Umbrellas are normally written in $1,000,000

increments for the limits. If "personal injury" is an available option I would recommend it. It provides coverage

against claims of Libel, Slander, wrongful imprisonment, etc.

Depending on the details of the property (age, construction, etc.) there may be other coverages that would be recommended. For example, if the house is on a non-conforming lot or the building ordinances have changed and you would not be able to build the same way if it burned down, you should look at the optional coverage "Ordiance & Law".

Hi Curtis,

I have a builder we work with on developments. Are you wanting to build rental homes with you purchasing the land and funding the build? Or looking for JV where you buy the land and builder funds the build?

I have not added an attached garage, but am adding  a stand alone garage to one of my properties.

I think that a stand alone garage is better because by attaching the garage the garage and house will settle differently, possibly causing foundation issues in the future.