All Forum Posts by: Jason Bott

@Sam B.@Henrick Sorenson

Most of my insurance carriers are coming back with a $5k annual policy minimum premium.  I am sure there is a market willing to do this for $1500 - $2500, I just have not found it yet.  Send me a PM if you would like to pursue further.

@Eric Hathway all of the coverages you need are the same.  The only possible difference is some insurance companies can only insure up to a 4 unit.  In that case, your broker may need to find a different insurer for the property.

@Henrick Sorenson

 @Sam B.

Henrick knows his stuff!:)  He is correct in saying the Umbrella follows the policy forms from your General Liability.  There are no additional Exclusions or Inclusions.

I have an email out to my Enviromental broker to see if there is a product/insurance policy that has been created for this situation.  I will post when I hear back.

Best, Jason

@Henrick Sorenson any type of pollution policy would be offered by a Lloyd's of London insurance carrier.  You will not find this coverage with any company that advertises on the radio or tv.  premiums will be in the $1,000-$2,500 range as those would be the minimum premium for that type of policy.

@Recia Davis

 I have structured insurance programs for 2 of these types of deals in the last year.  89 in IL and 145 in Miami.  In both instances, the lender was dictating the insurance terms.  If the lender wants the market value insured, you are talking about insuring $50k X 40, or $2M.  If you can get them to approve "Betterments and Improvements" only, just factor in the cost to build out the units, say $20k, and you are now only needing to insure $800,000 in building value.  about half of the insurance companies do not like to do these deals as they do not fit the traditional Condo association policy or the traditional apartment policy, but it can done.

@Fay Chen

In your profile you list investing in "Student and Rooming houses".  Both of these are considered high risk.  So if this is that type of property, then that is proabably the answer.

Secondary reasons...  

Storm area as @Huy N. references. 

Also, if your Broker is based in SoCal, they may not have access to all the TX insurance carriers.  Brokers still need to have a contract with a specific insurance carrier in order to provide quotes from them.  The average agent has 10 options, but there are 2200 insurance carriers in the US.  I am sure some BP members based in Dallas can refer you to their local insurance broker.

So you need a $2M Excess/Umbrella policy. 

I should have clarified, but I assume you have 10 SFR as you referenced them in the post. With 10 total rental units, you should be able to find a $2M umbrella for no more than $1,000.

I am using a separate company.

@Serge S.

 Just to firm up what they are asking for, you need a total of $3M per occurrence, not $5M total, correct? 

Either way, some companies charge a minimum per each $1M.  Most of the time it ranges from $250 to $500.  So $3M might be $1500 for some companies whether you have 1 unit or 100. 

$250 per unit is high.  For comparison, I just finalized a quote today for 1,006 total units.  $3M was $7,000 per year and $5M was $8,500.  So it is possible to get that cost per unit down.

@Curtis Bidwell I do not have an official doc similar to the post above for commercial. I can tell you that I know of 1 national insurance carrier who will write commercial flood. Their strategy has been to target all of the low risk commercial flood policies, basically, properties that have a lender requirement but will probably not have a loss. This company is the only option I know of that is an alternative to FEMA. Their rates are much less that FEMA and would probably have larger deductible options.

 legitimate claim, not light image