All Forum Posts by: Account Closed

@Keith Martin you bring up a very good point. Many lenders wont give you a loan on properties that show potential environmental issues.  They first require a phase 1. If it comes back questionable there are 2 options. #1 if to do  a phase 2, which is impossible in many cases due to the need of digging up the soil. #2 get environmental insurance. A typical liability policy wont cover you for environmental issues. 

Some times banks require an environmental insurance policy for the length of the loan. Evergreen Insurance has recently worked with a few lenders and provided environmental insurance for a 10 year term.

Insurance for Fix N Flip could get tricky. Every step of the process could need a different type of policy.

i.e. vacant policy, construction policy and regular commercial policy.

Evergreen Insurance has a great program specifically for these type of properties. This program will cover you from beginning to end.

Check out the program here http://www.trustevergreen.com/blog/2015/03/introducing-master-investors-policy-mip-program/

If you just wanna see sample liability insurance forms I'd recommend doing a Google search for "ISO liability forms"

There is one more road you can take. Get 100k replacement cost coverage and ad the 'agreed amount clause' like this you wont run in to co-insurance problems and in the event of a total loss you'll be getting your full 100k.

good luck.

Ed, the only problem that i see with replacement cost is that its more expensive.

The way we calculate the replacement value is by the amount it cost new construction per sq ft in that area.

Replacement cost is defiantly the way to go! ACV (actual cash value) should only be used when not insuring a building to value or its a very old building and the insurance company doesn't offer replacement cost.

Pro's
Replacement cost: you get paid the full amount to rebuild your property.
ACV: You don't have to insure to building to its full replacement value.
You can get coverage for older buildings.

Con's
Replacement cost: you have to insure the building at least 80% of the replacement cost.
ACV: You DON'T get paid the full amount to rebuild your building.

Deductibles really depend on your loss retention comfort level.

If its under an LLC than 500k liability is enough.
Do you know if the Dwelling coverage is Broad Form (like C - Personal Property) if yes see if they can change it to Special Form.
a $2500 Deductible would lower the premium some what.

good luck.

usually they will inspect after issuing the policy, so the policy will not be structured based on the inspection.

In most cases the insurance company would come down and inspect the property either prior or right after issuing a policy and and make recommendation for any hazards on the property.

Insurance companies will pay even if it was your negligence.

Such a site doesn't exist yet (yeah believe it or not on 2012). In commercial insurance there is an underwriter deciding on the rates.