All Forum Posts by: Cameron Moore

Always carry the highest Liability limits available. The difference in rate is EXTREMELY insignificant. Talking like $20/year. It is not about if they win, but it costs you to either settle or hire lawyers even if you win. But yes, have your contractors carry insurance and provide a COI with your name on it. 

I have warned countless people that the "new", "Cheapest", and "shaking up the insurance market" carriers typically come into the market under priced, have a wave of claims, then they either jack up premiums to survive or fire their staff to keep heads above water. I saw this coming with Steadily. 

Unfortunately, insurance is ridiculously high right now across the board, but you can work with an insurance broker that will shop ALL of the competetive carriers in Alabama and find the best coverage for the best amount of cash flow. There are no shortage of brokers, but look for one that is knowledgable in Investment portfolios. 

As an insurance broker, my biggest concern would be Insurance and Taxes eating into my cash flow. Granted, I am only 26 so negative cash flow is fine with me because I am banking on overall appreciation. But, constantly shopping your rates and battling the rising taxes are tough either way. 

I recommend always using an insurance broker to shop the market. The coast is tough but the brokers down there know who the best companies are for cash flow/coverage balance.

Find an insurance broker in the market of the property, they can shop the carriers that are most competetive and save a lot of time. Time = Money. 

@Constance Chambers , Everything we are seeing is unprecedented. Yes, unfortunately there are many cases of dishonesty among agencies. 

First, there are 2 types of Valuations in insurance; RCV (replacement cost value) and ACV (actual cash value). RCV is almost guaranteed to replace your home back at the standard it was before it had a major loss. ACV is a cheaper policy that inputs depreciation into the equation where you most likely will not get back to what you had (let's say you have a $10k TV and the insurance company believes that Television will have a life of 10 years, each year the actual cash value will depreciate 10% so a stolen TV in year 5 would warrant the insurance company to pay $5k). With that being said, do not confuse Market value for replacement cost. You will most likely pay more for a property than it will rebuild for because inusrance is not concerned with land value or the rising and falling of the market. We all know cities that are more expensive to live in than the outskirts of said cities. If you have a $600k house in the city and the same exact house on the outskirts that you paid $450k for, do you think the materials cost more? NO.

Second, never sacrifice Liability coverage. Most policies have $100k, $300k, and $500k limits. ALWAYS go with $500k. The difference in rate between the lowest and highest is less than $20/year so it kills me to see agents write lower limits.

3rd, water coverages are important. Get the higher limits and endorsements.

Finally, THE DEDUCTIBLES. This is how you mitigate risk. Do not skimp on any coverages in a policy so that you have more cash flow. Just raise deductibles because they effect rate the most. A typical deductible is 1% of the replacement cost of the home but many investors who intelligently view inusrance for what it is will take a higher deductible for lower premium. When I say "what it is", I mean insurance is a safety net for disasters that would otherwise tank your assets. Too many people file petty claims, that is why insurance is so expensive right now.

Feel free to PM me if you have any questions. I could also connect you with brokers that are licensed in your state.

@Lincoln Waite , You don't need to be an insurance professional. You have enough on your plate! Just have a solid broker in your network. With that being said, I will offer some basic advice! 

First, there are 2 types of Valuations in insurance; RCV (replacement cost value) and ACV (actual cash value). RCV is almost guaranteed to replace your home back at the standard it was before it had a major loss. ACV is a cheaper policy that inputs depreciation into the equation where you most likely will not get back to what you had (let's say you have a $10k TV and the insurance company believes that Television will have a life of 10 years, each year the actual cash value will depreciate 10% so a stolen TV in year 5 would warrant the insurance company to pay $5k). With that being said, do not confuse Market value for replacement cost. You will most likely pay more for a property than it will rebuild for because inusrance is not concerned with land value or the rising and falling of the market. We all know cities that are more expensive to live in than the outskirts of said cities. If you have a $600k house in the city and the same exact house on the outskirts that you paid $450k for, do you think the materials cost more? NO. 

Second, never sacrifice Liability coverage. Most policies have $100k, $300k, and $500k limits. ALWAYS go with $500k. The difference in rate between the lowest and highest is less than $20/year so it kills me to see agents write lower limits. 

3rd, water coverages are important. Get the higher limits and endorsements. 

Finally, THE DEDUCTIBLES. This is how you mitigate risk. Do not skimp on any coverages in a policy so that you have more cash flow. Just raise deductibles because they effect rate the most. A typical deductible is 1% of the replacement cost of the home but many investors who intelligently view inusrance for what it is will take a higher deductible for lower premium. When I say "what it is", I mean insurance is a safety net for disasters that would otherwise tank your assets. Too many people file petty claims, that is why insurance is so expensive right now. 

Feel free to PM me if you have any questions. I could also connect you with brokers that are licensed in your state.

Hi @Kim Hopkins . By Discount reviews, I usually mean bundle discounts which each carrier can provide despite how many different states your properties are in. Also ensuring the carriers know when any updates are made to your properties. 

As far as the agent goes, its hards to find an agent with access to a lot of states. I am only licensed in 5 and it costs a good amount. However, let's say you have everything with the same company via different brokers across the US, you will still get that carriers best discounts! Hope that helps.