All Forum Posts by: Gerald Grinter

@Nicholas Morgan Correct! I work specifically with small business owners and often get asked this from them when are asked to get insurance to work with a another business or enter into a contract of labor. The answer I give them is: Protect yourself (the small business owner) as you would protect others should the unthinkable happen. This is how other business owners know your business is not a hobby and you take it seriously. I hope this helps. 

@Lisa Y. I agree with @Curt Smith. Working with a a broker than can insure nationally as well as sizes of rentals is key as you grow your property portfolio. The Main St. insurance agency/companies have limitations on how many rentals they will insure from an investor. Once you get over a certain number, they begin to look at you as a business owner vs. a rental property owner. 

Which leads me to another point. You have a business and this is the next step (i.e moving to an independent/national agent/broker). I coach many of my new investors when they cross this threshold and want to look for not only value, but service and coverage. Remember, it's not about price. It's what you get for the price that makes the difference. 

Last and not least. The insurance industry is into a "hard market" right now. Meaning, premiums increases and tighter underwriting. Probably for the next year or so. Keep an eye on your policy when it renews for increased rates and if you are concerned that it's higher than you feel it should be. Ask your broker to re-market it to their other companies. 

I hope this helps. Best of luck. 

@Brenden Mitchum I would second What @Bjorn Ahlblad said. If this is from the result of a claim you may want to find our the length of time the potential tenant has to either rebuild or find (rent) a new place. Some insurance companies offer a dollar limit and some a time limit. If possible see if you can get connected with the insurance company paying the claim. I hope this helps. 

@David Ibrahim As this will one of the things your insurance agent will ask about when working on your coverage. If they mention this as a concern. Please let them known if you have plans to update the wiring once you are the owner of the property. This may help put insurance underwriters at ease when considering binding coverage. They may issue the policy with a condition of "proof of work completion within a specific date (i.e. within 60-90 days). I'm with @Jim S. on this one. If you can replace it all, do it. Best of luck. 

@Maureen Rhodin There are quite a few companies that are writing this coverage now. In the past it was really tough to find. However, I still recommend doing a little homework or have your agent do this, as there can be differences in exclusion between the carriers on how they cover each business. If you have questions feel free to send me a PM and I can look deeper in to this for you. 

@Nathan Lose Welcome to BP! Sounds like you are off to an amazing start. You've landed in the right place. This is just the beginning of great things for your. Congratulations and may your business thrive!

Hey Katie, 

Another Welcome to BP! 

Love the house hack idea on a multi-family. I have several customers using this investment strategy. When talking about their policies, it helps to know their long term goals. It's not just insurance for what they do. It's insurance for how they live. 

If you ever want to talk about your insurance feel free to reach out. 

Best of luck! Have fun! And may your investments THRIVE! 

Gerald

Hi John, 

Unfortunately, getting this as a stand-a-lone coverage may be tough to find. Most companies and brokers will want to have both the umbrella and general liability policy to offer the sale/disposal endorsement. 

Start with your broker who writes the general liability policy to see if they than add this endorsement. Feel free to give me a call if you'd like to talk more. I hope this information helps. 

Best of luck. - Gerald 

Hi Nathan, Casey and John are spot on. The market is getting hard and rates are increasing. Unfortunately, this cycle happened during the vortex of the pandemic. It's always best to keep a couple of broker contacts close to ensure the best rate and coverage. It sounds like you've done your homework and may have to ride this increase out for the time being. This cycle may take a year or two before rates stabilize. Best of luck. 

- Gerald 

@Dave Thomas I agree with @Patricia Steiner and @John Underwood on this one. While personal lines companies are getting better at insuring Vacation Rentals on a short term basis. There are limitations that most personal lines policies have when it comes to coverage offered and not covered in the event of a loss. 

If you are looking to keep cost down and your current company can write it, then this may be the way to go. However, in the end the premium for your ADU may not be much more than what your personal lines policy cost and may be worth the cost. Ask your broker for both quotes and explain the differences.

Keep in mind you are now running a business and should look at it that way no matter which coverage you choose. 

Please feel free to PM me if you have any questions.