All Forum Posts by: Derek Lacy

Ryan Ball there are insurance products which act like forced place renters insurance. Basically you set up the account, they assume all 40 units have no renters insurance. If your rent is $1000 per unit, you charge $1010 per month until they prove they have insurance. The software these insurers use allows you to track your tenants insurance renewals. You'll find most tenants just go with your plan. Or just advertise free renters insurance and eat the $10 per month cost. Obviously it's a bit more entailed, but that's what our large property owners do. To offset they may carry a $25-100k deductible as the know tenant negligence is covered by a separate policy. Feel free to PM with any direct questions.

Just an FYI, that's an incorrect use of the term umbrella. No big deal, just so if you start calling around you know the correct terms. There is no specific term for many locations on one policy, some may call it a scheduled dwelling policy, but that's not a big deal, just say I have X properties and I want 1 policy. Yes it is better in all terms. You'll have more leverage with underwriting which results in better price and better coverages. The more you have the better that will be. We write these all the time in all 50 states if you need a second opinion let me know. The term umbrella refers to an excess liability policy. Meaning I need $4 million in liability coverage, but my liability policy only provides $1 million. I better buy a $3 million umbrella policy. If I could go back in time, changing the term umbrella to excess policy would be one of the things I would do after my dispatching of baby hitler. You are neither the first or the last to mix up that term.

Yes. Jason Bott is spot on. The issue is what we call COPE in insurance. That's how rates are developed. Condition, occupancy, protection, exposure. Problem is you cannot get as specific on occupancy as the underwriter will need to develop the full quote. http://www.investopedia.com/terms/c/cope-insurance.asp

Leah D The issue is student housing. Not that you are renting it. Almost every insurer will ask is this student housing. Some when you say yes will say no thanks. Sure makes you want to say no. But then you would be misrepresenting on an insurance application (meaning when the claim comes in the policy could be voided). There are some insurers that have no problem with student housing, but it's not the State Farm all states of the world. PM me and I can help diagnose this better for you. Unfortunately something like this is not something you can give blanket advice on.

Our office has found three companies write them best. But unfortunately you cannot access them directly. A local independent agent can probably help, but we do write in all US jurisdictions, so if you need a direct answer or advice, feel free to PM. Just make sure the agent is advising a company that specifically writes for that.

Debbie Downer here. This is all going on the assumption that renters insurance would pay the damages to the rented premise. As this was not smoke, fire or explosion, the common renters policy would not respond.

@Nicholas Covington Very good.  And yes there may be liability to the landlord, but the standard policy explicitly states they only pay liability claims due to damages in their residence premise for the causes of loss of smoke, fire and explosion.  So a standard renters policy would not pay out for an overflow from a toilet.

Not suggesting to not go the insurance agent route, but here's what I see a lot of from direct writers. They pay about $10-12 /hour to their service reps in a large call center and give incentives for getting you off the call asap. As in if you have less than x number of minutes on an average call you get a bonus that week. So with that being said. No idea if USAA acts in such a manner. But there is a ready made homeowners endorsement for this. HO 04 40. Call them and ask for it by name. It's likely that the rep you spoke with does not know it exists. It's also likely that USAA just does not offer that endorsement (this endorsement spreads coverage to uninspected properties). If they do have it, you will find it costs less than $50, usually closer to $15. As you already can tell, working with an agent will mean you don't have to guide a CSR by the nose to help you, so even if it costs $100 more it's money well spent. Here's a copy of that form. http://www.quakerma.com/FaF/Policy%20Forms/Lloyds/Homeowners/HO0440%20Structures%20Rented%20to%20Others.pdf Of course pm with any specific questions or a second opinion.

I'm guessing these properties are in Naples? You're going to have high roof demands from all insurers. It's only SW Florida. Remember the hurricane that killed Marco? I was there for that one. The hard part is South Florida is a tough market. At least your not Miami Dade, but a 4 point inspection with wind mitigation when you purchase a home will help you a lot more. With the right mitigations we can get a $500,000 house down to about $2k of premium in collier county. $100,000 down to $1000 in premium. But that's hip roof, clips, great decking, impact resistant glass, etc.

@Tiffany S.  No.  A reputable insurance agency/company can send the full proposal and specimen policy (a copy of the policy forms that they will use) for you or your legal counsel to review prior to purchase.