All Forum Posts by: Derek Lacy

Paul

One would think you can cancel any policy at demand. But the NFIP has very specific rules on cancellation.  They can be found on the link below. It’s certainly one of the few exceptions to on-demand cancellation of coverage. 

https://www.fema.gov/sites/def...

Originally posted by @Paul O'Connor:

I think I figured it out... the insurance company told me that I couldn't cancel the policy, which didn't make any sense... I should be able to cancel any insurance that I don't want on my property. The only reason that I got flood insurance, was because I was going from owning the property outright, to wanting to get a refinance on the property to buy more investment properties. But once I found out how much money I was losing, due to ridiculously high flood insurance quotes... I cancelled the refinances. So, the flood insurance company, still had the lender listed on the property, who was going to REQUIRE flood insurance. That's why I couldn't cancel it, I figured that part out, now they'll let me cancel the policy.

Jay

Unfortunately for the OP this is an in-betweener. Had the failure occurred before permit closure it would be a builders risk collapse (most likely). But as it is after it is not. 

The liability insurer is correct if the work was self-performed there is no coverage for poor workmanship. 

what would be covered is ensuing damages. So the poor roof work would not be covered, but the resultant insulation and drywall work would be covered. 

what may be covered is turning in a 1st party property claim. But builder defect is a common exclusion. 

best bet is contract law. So then it comes to recovery. Is it worth $75k to recover $110k. 

Originally posted by @Jay Hinrichs:

Originally posted by @John Mocker:

Calvin,

Did you check with your carrier on this loss.  If it is a covered loss, the company may pursue the contractor/PM if they feel they can recoup all or part of the loss.  

 I would think his builder risk policy would pick this up or his permanent insurance that will cover roof failure.. bottom line 110k claim is a tough one  as stated above attornies fees to get there and the years it takes then the guy just goes BK at the end. 

@Bob Wiedenhoeft

Why non-fema?  Is the community not participating in flood controls as a whole?  

It’s rare to need a non-fema. 

Unfortunately you cannot buy the flood policy for them. They need to do it themselves, but as @Jared Newsom advised any independent agent should be able to provide. 

lots of misinformation here. 

@Mark Fries Captives can rarely be used for property exposures. Too risky. Now liability (the umbrella exposure) is what it can be used for. I cannot think of a reinsurer that would write over a rental property captive. 

@Jared Newsom a commercial policy does not allow under insurance. You would still have to insure at 80, 90 or 100% to value depending on your chosen coinsurance level.  

Great example on how this forum leads to reckless advice when it comes to insurance. 

To the OP @Robert Treherne 

Homeowners is for owner occupied dwellings. 

Renters are for the tenants of a dwelling. 

Landlord (technically called dwelling fire) is for owner occupied or tenant occupied dwellings. 

There are also commercial package policies. 

You can finance your risk through guaranteed cost (what most consider “regular” insurance), retro-rated (you receive a premium 50-60% off of guaranteed cost, but pay a portion of claims paid/incurred, up to a stop loss), low deductible (deductibles per occurrence or in aggregate from $50,000-$250,000), high deductible (above that $250k) or captive (arranging your own insurer for liability losses with reinsurance  put into place). 

The last 4 are types of self-insurance. 

There is a 6th option which in uninsurance (many will refer to this as self insurance, but as there is no financing in place it is just truly, hope and a prayer with no plan). 

So can you put 50 properties on one policy and pay less rate than one property?  Heck yes. For example a property policy may have a $0.55 per hundred rate on one prop. But the 50 properties might be $0.25. 

Now yes, you pay more premium for 50 vs 1. But you can really drop the per house cost. 

Hope this helps.  Ask any questions as needed. 

Unfortunately, the only work around is a different lender.  Maybe try Auto-Owners insurance for MI, but no matter what replacement will be much higher than appraised. 

@Dane Peterson

Sorry you may misunderstand, I’m saying insurance advice for FL is not the same as advice for TX. Apples and oranges.  So a Chicago investor would have no idea how to advise you. 

You are getting paid for your self inspection. You could be charged $225 more to pay for a Muller inspection. 

Yes, it is new to UPC.  You can choose not to participate and they will cancel the policy.

Because of the extreme rarity of standard property insurers in FL, which causes high costs, many insurers are trying innovation to lower costs and be more competitive.  You can go with the flow, and take some rate reduction, or fight it and pay higher rates. The choice is yours. 

Here’s the problem with bigger pockets for insurance advice. How the heck does an investor from other states know about FL. 

Allstate, Farmers and State Farm quit writing about a decade ago. 

Yeah UPC is a pain in the rear. But beats the crap out of Citizens. 

Yes, you now have a big mark on your record. Expect pricing to double or triple for 2-5 years. Call a few independent brokers and find one you like. Some insurers won’t pull your claim record, they will only ask if you have had any claims in the last 5 years. Resist the urge to say no. If you do and they discover you misrepresented, they can void your policy and avoid paying all claims.

Brandon Battle There is such thing as “a bad day in the neighborhood” in law. If I, a healthy 37 year old, drive my car, suffer a fatal stroke, my car goes across the median, strikes your car. In almost all US jurisdictions, I (or my heirs) was not at fault. Why? Negligence is 4 parts, duty owed, duty breached, injury and monetary damages. I’m unsure if the duty owed is my A/C will never unexpectedly break down. Just like I owe no duty to safely drive my car after a fatal stroke. Now, the owner knew it was a crappy leaky A/C or I knew I was a probable walking stroke, different stories. So it’s not always it’s not my fault so it’s somebody else’s.

Christen G. Quick way to solve this. Ask the lender what their insurance license number is. When they say they don’t have one, ask them if they play doctor, accountant or lawyer too (you could save hundreds). Jason Bott is spot on.