All Forum Posts by: Jason Bott

@Jenkins Ramon @Jeff Godbout thanks for the mention.

@Andy J. @Brie Schmidt 

Andy, thanks for the call Friday, I would be happy to run you options.  I will include an option from Auto Owners for comparison as Brie mentioned.  But I have found Auto Owners to not be very competitive on premium and/or coverage.

@Kyle D. 

Each insurance carrier has a % of occupancy that dictates when it will be considered vacant.  I have seen 31% be a common % used, so below 31% it would be considered vacant.  This same company will allow you to add an endorsement to take that # to 11%.

The important thing is to ask each particular company to just be aware of the %.

For investors who own or looking to purchase properties in a Flood plane, make sure to factor in these future premium increases FEMA will implement April 2015. These costs are in addition to the rates currently being paid.

Primary residential homes/condos  will receive a $25 policy surcharge.  All others—Investment/non primary/commercial  buildings/multi- family residential will receive a $250 policy  surcharge.

Average annual rate increase is  limited to 15%.  Except non-primary residences the max annual increase is set at  25%.  And clients required to now have flood insurance by their mortgage company  due to remapping will see a max annual increase of 18%.

Federal Policy Fee will  increase.  See below.

Preferred Risk Policies will be  $22.

All other policies will be  $45.

Preferred Risk policies that  were granted the exception to stay in Preferred due to remapping will be  $45.

Residential Condo Building Assoc Policies

–  1 unit: $45

–  2-4 units: $135

–  5-10 units: $360

–  11-20 units: $720

–  21 units or more: $1,800

Clients who are now required  by  the mortgage company to have flood insurance due to remapping will be eligible  for the Preferred program for 1 year or until the rates meet or exceed the  standard program rates.  The Federal policy will be $45 and the rates will not  increase more than 18% per year. 

The NFIP’s definition of a  primary residence:

–Previously identified when a customer occupied residence  at least 80% of the prior year

–As of April 2015, a primary residence is now considered  when a customer will occupy their residence more than 50% of the policy  term

–Current driver’s license

–Automobile registration

–Proof of automobile insurance

–Voter’s registration

–Documentation of children’s school attendance

–Homestead tax credit form for primary  residence

The NFIP will be sending a form  to clients for completion. 

New $10,000 deductible

A $10,000 deductible option is  being introduced (but must be taken for contents and building).  This is for  single family homes and two-to-four family dwellings.  The customer must make  sure this is acceptable with their lender.

@Mark Cohen there are not insurance products that will insure against an under performing business operation.  With any insurance policy/product, an "Occurrence" needs to happen to trigger coverage.   These triggers are called "Perils", such as Fire, Wind, Falling Objects, ect. In your example, there is no occurrence that takes place.  Someone not paying rent is not a covered Peril.

If coverage for this exists, it would be in the insurance bonding market in some sort of form of a Performance Bond. 

Please let mkenow if you do come across something, I would be interested in what the product looks like.

@Toben B. how many units?

@Leigh Ann SmithYou may want to contact a few more agents as there are insurance companies willing to insure a stand alone SFR covering Property and Liability. I do not write personal lines insurance, but I have seen TX clients with Safeco who have their primary residence and multiple rental properties all tied together.

@Todd L.Foremost and Safeco are companies represented by independent agents, so you will want to goo on their website and find an agency that represents them in that marketplace.  They are not set up like Progressive where you call them direct.

@Curt Davis  1 week to a month is the adjust and client are not playing phone tag and the claim is straight forward.  I have seen them go for months if the claim does not have clear evidence or there is a difference in opinions as what the claim settlement should be. 

@Jake Huber 

No special insurance needed from a Liability and Property standpoint.  The work comp differs slightly the way the rules apply to the owners/partners.

@Jeremy Clemons 

If the locations are listed as on your personal umbrella policy, you have coverage.  Some personal umbrellas will allow up to 10 rentals, while others stop @ 1.  Once the limit is met on your personal umbrella with your particular company, you are required to move/start a commercial policy.  Hope this helps.