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All Forum Posts by: Rod Hanks

Rod Hanks has started 8 posts and replied 558 times.

Post: Short term rental insurance

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360

Texas has one of the highest insurance rates in the country and Houston and Dallas has the highest rates in Texas. Houston has hurricanes floods and wild fires which accounts for the rate. 5k is a good rate for a STR if it's it State Farm. Sorry for the sticker shock.

I have another National carrier that may beat State Farm but pretty sure not by much. PM if you would like a quote.

Post: NRIG Insurance Pro's or Con's

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @John Lupo:
Quote from @Rod Hanks:
Quote from @John Lupo:

Hi Biggerpockets Community

     I was wondering if anybody  has used or is using NRIG for their multi family properties, I received a very low quote that seems to good to be true, I have a fully paid for property in Los Angeles Calif, and came across NRIG from the recommended vendors list here on Biggerpockets, I am doing some due diligence and found some old posts, but I am not getting a warm fuzzy feeling about them if anyone has some current experience with them I would love to hear from you or if you could recommend a good agent that would be great.

Thanks


m

 It might be best to get with an independent agent. We use Guard for multi family properties, they are very competitive in CA and the coverage is very comprehensive.


 Hi  Rod 

Thanks for the reply, we been using guard and for some reason according to my current broker said since we haven't had any major improvements done to the property like new roof electrical or plumbing they will not cover this property anymore. So my agent gave us a quote of 6k from another non admitted carrier ( IAT insurance group) , NREIG being a non admitted company as well quote was 1,200.00 huge difference for 2  non admitted carriers, ( leaving to think differently about my current broker) or is this just the way property insurance is now,

Have you ever heard of being turned down for insurance just because we don't have any documented improvements in the the past 15 years ? the build is a all update date with circuit breakers and copper plumbing and has been seismic retrofitted.

Thanks rod


 Yes, Guard is a preferred admitted carrier and they require the property to be updated unlike a number of non admitted carriers. The non admitted carriers are looser with their guidelines because they have exclusions and coverage limitations that the admitted carriers do not have. They also exclusively only cover the properties at actual cash value and sometimes exclude theft and have limited water damage coverage. Non admitted carriers are ideal for older properties with deferred maintenance. Compare the Dec page and exclusions of NRIG and the one your broker provided and pay attention to the exclusions. If it’s a 1200 difference I would assume there are some exclusions that were not discussed. I would also recommend getting a third quote from another non admitted carrier to see if it’s competitive in price and coverage.

PM me if I can help.

Post: NC - Insurance for LTR that will then be used as an STR

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @Zach Sprau:

Hello, 

Hoping to get some suggestions on rental property insurance. We are getting ready to rent out our property in North Carolina so we need to change from our homeowners insurance to rental property insurance (that includes replacement/rebuild coverage on the property). 

We will be entering a long term lease with a small LLC who will then AirBnB out the property. We will have a LTR agreement with the LLC (that includes a provision for STR), and then the LLC will rent it out as a STR. Our current homeowners insurance provider does not have a product that will cover us for this situation, and the broker they referred us to seemed to be a bit stumped as well, but they are looking into it.

Does anyone have experience with this or have any suggestions for insurance companies/products in NC that would cover us for this situation?

Furthermore, what type of insurance should require the LLC to have? We've been told that for our specific property we should require them to have $100k of insurance (outside of what AirBnB provides) and that we should be listed as an interested party on the policy so we would be notified of any changes.

Thanks! 

Zach


Not sure why you would make it so complicated I’m assuming an attorney advised you to do it this way. But you would get a policy that has the STR endorsement in the name of the property owner and add the LLC that is running the STR as additional insured or additional interested party. I would suggest at least 1 million in liability.

Since you are setting it up this way I would also suggest you setup a separate general liability insurance policy for the LLC that is running the STR which would cover all STRs that it runs. So in essence there would be 2 polices, 1 for the owner of the STR and 1 for the LLC that is managing or running the STRs. 

we have access to a couple carriers that covers STRs and would love to help. 

Post: Contractor advice needed in Dallas, TX

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @Selina Gruden:
Quote from @Rod Hanks:

Welcome to Texas where anyone with a hammer and truck can be a contractor. Go with a trusted referral and check his current projects and references. The vast majority of contractors I deal with do not have insurance. 


 HI Rod, thank you for the information! That is exactly what I heard from other investor in that area. It is like the wild west! I checked his projects by photos and his reference, they are all positive. I am wondering what do you do to lower the liability and make sure the work compensation is paid? 

I have 1 million liability insurance for my property management business and 1 million liability for each property. As far as workers compensation there is no requirement in Texas, I don’t have them sign a waiver or anything else to mitigate risks. If you are concerned I would suggest you only hire contractors that have 1 million general liability and workers comp insurance but you will find that those small residential contractors that carry insurance are few and far between and you will definitely pay a premium for their services.

Post: NRIG Insurance Pro's or Con's

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @John Lupo:

Hi Biggerpockets Community

     I was wondering if anybody  has used or is using NRIG for their multi family properties, I received a very low quote that seems to good to be true, I have a fully paid for property in Los Angeles Calif, and came across NRIG from the recommended vendors list here on Biggerpockets, I am doing some due diligence and found some old posts, but I am not getting a warm fuzzy feeling about them if anyone has some current experience with them I would love to hear from you or if you could recommend a good agent that would be great.

Thanks


m

 It might be best to get with an independent agent. We use Guard for multi family properties, they are very competitive in CA and the coverage is very comprehensive.

Post: Previous owner was taking money under the table with section 8

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @Ryan Cleary:

Thank you for everyone’s reply.  By no means do I want to ruin this tenants livelihood.  She has been honest this entire time but I supposed delaying the inevitable of me finding out.

From her words, she was scared and wanted to find a safe place to live and had to take what the landlord was demanding.  She also mentioned that he charged her $500 since it was taking him so long to fill out paperwork since he has never done it.

My main question is what to do with this seller.  This is textbook fraud, I would prefer not to hire a lawyer but by no means can he get away with this


 I’m assuming that you already bought the place and now are finding out the lease was a fake. As far what you can do with seller is sue him for misrepresentation, but what will that get you??? You can report him to Section 8 and that will get him kicked out as a landlord but I doubt they will prosecute. They will probably kick the tenant off the program also but she has a good excuse and they may not. It’s a sticky situation but me personally I wouldn’t spend an ounce of brain power on trying to get him back I would just go buy some more properties and verify leases next time if the purchase is based on rental income.

Post: Buying a section 8 house

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @Kyle Wainwright:

If I buy a current section 8 property does it legally have to stay section 8 housing?  What is the process to get out of this once purchased?

Thanks!


 Just like any other lease. If they are month to month send a 30 day notice of non renewal. 

Post: Contractor advice needed in Dallas, TX

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360

Welcome to Texas where anyone with a hammer and truck can be a contractor. Go with a trusted referral and check his current projects and references. The vast majority of contractors I deal with do not have insurance. 

Post: Property Managment contract question

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360

I always recommend 1 million but 500k is probably sufficient. At any rate if there management guideline is 1 million then go with if you want to use them.

BTW, The difference between 500 and 1 mil is probably $10 a year. 

Post: Sweet 80 year old tenant can’t afford rent

Rod Hanks
Insurance
Pro Member
Posted
  • Insurance Agent
  • Dallas, TX
  • Posts 577
  • Votes 360
Quote from @Nathan Gesner:

This is pretty common and the real shame is the lack of family members willing to care for their own. I hate being the bad guy, but it's not my responsibility to care for all the tenants in the world. I would be generous and give her up to six months to find a low-income housing solution or something.

This is business and not a charity. You have a tough choice to make 1. Raise the rent to market 2. Accept what she’s been paying and slowly bleed to death.