All Forum Posts by: Jason Bott

@Matthew Olszak a tenants renters insurance will not provide coverage for you or your property directly. 

if they start a kitchen fire, your policy will pay for damages first.  Then, it is possible, for your insurance company to go after the Renters insurance policy for the claim amount.

Also, in IL, a landlord can be added as Additional Interest on the policy, not Additional Insured.  

@Megan Helm will these be buy and hold or flips?  Different insurance carriers for each scenario.  

@Phillip Syrios

Every growing landlord or contractor will run into this issue eventually.  It's not just MO, but most states are set up with the same Work Comp laws.

Besides making it mandatory for each to carry their own insurance, here are a few solutions some of my clients use,

1)  Have the 1 man show purchase a work comp policy with "if any" payroll and exclude themselves from the policy.  Then reimburse them for the premium.   This takes the burden off of your policy, reduces your overall yearly cost.

2)  Have your policy pick up the work comp coverage for your low risk vendors.  Such as independent leasing agents, janitorial etc., but require the higher risk trades like roofing, carpentry, to carry their own policy.  Each state has different work comp rates per trade, which is referred to as a Class Code, so you really need an agent to go thorough your payrolls and the current rates to determine which vendors you will require to carry and which ones you will not.

3) have your policy pick up all of the exposure and premium, but withhold the cost from the vendors payment.  Example, you need to pay the painter $1000 for July work and the work comp rate is $12 per $100, then you pay them $880, ($1,000 - $120 work comp fee).  This is an option but a pretty big administrative burden.

I counsel on this exact senerio 1-2 times a quarter.  I can tell you all of these answers usually generate many additional questions, so PM me is you would like to discuss further.  Id be happy to help.

@Dawn Fu if they are too busy to help you, it's time to move on.  call a few independent insurance agents.  I guarantee there are agents in your town that will be more responsive to your needs.  

@Ian K. roofs have been a hot button for the insurance industry the last few years.  There most likely other insurance carriers in the marketplace willing to do it, you just need to find them.  Keep in mind, even the largest independent insurance agency will not have access to every insurance company.  Call a few direct writers like State Farm, Nationwide and another 1-2 independent agents.  

Good Luck

@Shakha G.

Do you have a local management company?  Sometimes underwriters will allow out of state owners if they know there is someone local proactively managing the property. 

@Matt Heath

Your rate per $100 of value will range from $0.30 - $0.70.  So a $100,000 building value will have an annual premium of $300 to $700.

in WI, there are a few property characteristics that drive pricing. 

older than 1980  will drive premiums up

Hardwire smoke detectors and/or sprinkler system will greatly drive premiums down

Some companies will not offer quotes on buildings with Roofs older than 20 years

Lastly, if you have had any losses the last few years, that could drive up premiums.

There can be other factors, but 95% of the time the above drive the pricing.

@Mansoor Fazel Sorry, meant to say year built of 1985

@Mansoor Fazel

Always good to see other brokers from around the country on BP. I have client sin CA and was curous as to who is the most competitive in the SFR space in 2015. Most of what my investors have are 2985 or newer, $250k-$400k insured value. As you know, the insurance market is cyclical and different from region to region.

Look forward to your comments.

@Tony Ngo unless there is some unique law in your state, a tree limb or entire tree falling is considered an "act of God" and is no ones responsibility.

One of the only ways you could be found liable is if the tenant or some other 3rd party warned you about the unhealthy state of the tree, you neglected to act, and it them caused this damage.