All Forum Posts by: Jason Bott

@Don Belsky you may want to look around as that seems a little high for a flip

@Account Closed you will not get a dependable insurance estimate with only the sq/ft.   

First, you should establish What type of coverage you would like.  Do you want every claim paid?  Or will you pay out of pocket on anything below $25k?  Obviously, wide range of options depending on your risk tolerance.

Second, what type of property will you be looking to purchase?  Age?  Is the end goal appreciation or mainly cash flow ?

Lastly, type of renters.  Students, subsidized and some other classes are considered a higher risk and additional insurance premiums need to be factored in.

Also, if you can tie this property to your other home and auto policy, it may be lower than if you try and find a separate policy with a different insurance company.

If you can answer these questions above, I can give you a range of insurance premiums.

@Account Closed you are asking for the right coverage, but most companies are not pricing their policies aggressively to get this business.  I will PM you info on the insurance companies who are the most competitive.

@Jessica Gartzke  Welcome!  BP will be a great resource for you as there are many active members based in SE WI.  

@Nick Leamon 99.9% chance your current insurance policy will exclude coverage for this or deny a claim as this would be considered a "material change".  Meaning, what the insurance company initially underwrote the policy for is now a completely different risk.  Give your agent a call to estimate the possible additional premium you may take on.

@Jason Baehr there is an insurance program that will bill on a monthly basis and the property can be vacant or being rehabbed.  I will PM you the info.

@Account Closed, I insure several hotels, all Indian owned.  their entire family works in the biz around the clock but takes a salary well below minimum wage.  So if the p&l shows $30k in payroll, you know that a good portion of the profit will convert to payroll unless you have a huge family always dreaming of running a hotel.

@Alison Robinson

 Sounds like your SF agent has you on their commercial policy already.  SF has been competitive in IL but premiums seem to be climbing. 

Here are some companies you should consider, all of which you would need to partner with an independent broker like myself or the contact @Adam Farag is referring,

Auto Owners, Foremost, Berkshire, West Bend

Each of these companies can handle single family, multiple titled properties, that are insured for cashflow and not high replacement costs.

@Alison Robinson in your profile you state you have 5 properties, on your way to #6.  You are right at the point where you will have too many properties to combine them with your personal home and auto, and will need a commercial policy.  

So, how long until you get your 6&7 property? Are the properties titled in your name or an LLC? Are these properties just for cash flow, appreciation or both?

@Megan Helm If they are ready to rent and you are showing  the units, we can underwrite them as a normal rental property.

If there is work to be done, then we would set up a separate policy that contemplates for rehabbing and vacancies.

Most of my clients have 1 policy for their flips/vacants.  Once they are rented we will move them to a second policy with preferred rates. This way we don't run into any coverage issues and the underwriters can extend preferred pricing as they know they are not picking up the higher risk flips.

I'll pm you and we can discuss which companies will fit your risk tolerance.