Originally posted by Jim Jrolf:
Steve,
There is insurance specifically for rental properties. If you get a policy with enough liability coverage, you can avoid the expense of an umbrella policy. If you enforce renters insurance for the tenant, and there is a loss due to their negligence, their insurance will apply - no deductible for you.
I spoke to an insurance agent, and they mentioned if I have high insurance coverage on my vehicles and rental properties, and have all my insurance through them, I could get an umbrella policy for less than $500 a year. She said with higher coverage, there would be a much smaller chance of the umbrella policy being used.
Renters Insurance:
For example, in case of a fire that causes $20k in damages and you have a $2000 deductible, does renters insurance cover your deductible, or does it cover the entire cost of the repair if it was the renters fault?
A fellow landlord mentioned in one of our REIA meetings that his insurance went up after a fire in the home and the tenant didn't have renters insurance. Now the insurance company is suing the tenant for the damage caused to the property. Didn't know that was possible.
