All Forum Posts by: Jason Bott

@Mike Oconnell 

I have to agree with @Wayne Brooks 

Insurance policies do not allow you to make a claim against yourself. 

@Jack Bobeck are the properties located in Florida?

@Justin C. 

Cal is referring to an insurance program specifically built for flippers.  It takes into consideration the 3 different exposures (Vacant, rehab, rented) and rolls them into 1 policy.  All other insurance providers that I know of need to write a several different policies with large deposit to duplicate the coverage.

It sounds like you have a personal policy covering the condo.  A personal policy excludes business operations and it will never have the ability to add a business as an Additional Insured.  If you have a commercial policy covering the condo, as you should since you are renting it out for income, there should be no issue.

@Harnit Koch

This insurance coverage is called "Water & Sewer back up".  It is not always included, but ask your agent if you have this coverage.  Typically if you do have it it will have a $5k or $10k limit with a deductible.

@Dan Perrott for most insurance companies any wood burning heating device is prohibited.  You will probably eliminate 2/3 of the insurance companies as options.  That being said, if the rest of the property is nice, You should be able to find affordable options.

@Bob Yon 

From an insurance perspective, it would be very difficult to find an insurance company comfortable, or capable, of properly covering an entity involved in both computer consulting and real estate transactions. The E&O & liability exposers are completely different.

Another vote for the multiple entity structure.

@Carlos O. @Jon O. 

Carlos, Jon makes some good points.   One approach that is helpful for my clients is determining the cost per sq /ft to build in the area you are investing in.  If it is $200 per sq/ft, then $125k is not far off.  If it is $110, then you are over insuring and wasting $.  

Once you have a good feel for sq/ft price, then you want to determine your risk tolerance.  If you are more conservative and do not want to pay in $ at the time of a fire, then you will want to be insured close to the cost per sq/ft and have replacement cost coverage.  If you are planning on the insurance not covering the total cost of the claim and keeping some of the premiums to yourself (self insuring), the lower building values and actual cash value is an option.

I find most investors do not realize the extra risk they take on when insuring on an actual cash value.  Nothing wrong with this approach as long as you understand the outcome and plan accordingly.  Some of my largest clients do this as the amount of $ saved on premiums over their entire portfolio will cover the amount of the claim that will not be covered.

@Account Closed thanks for the mention.  It always helps to get a few options as my "hot" insurance carrier in WI & IL is 3x's the cost in IN.  It just goes to show each marketplace is unique even when it comes the the same insurance company.

@Daniel Harnsberger 

Are the owners currently occupying the properties you are assuming?  Will they continue to do so?  If so, they will want to keep a policy in place to cover thier persoanl belongings or Business personal property.  Also, the sellers/previous owners still have their name on the title so they will want to have liability protection in place.  Your new policy will most likely not address both of these issues.

@Muki Naseer 

If it's not small, fluffy and can comfortably fit on your lap, chances are the insurance carrier will not like it.  Here are the notes from a few of our companies and their dog restrictions.

Acuity – Akita, Chow Chows, Doberman Pinschers, German Shepherds, Huskies, Malamutes, Pit Bulls, Presa Canario, Rottweiler, Staffordshire Terriers and wolf-hybrids are not acceptable.Other dogs that have previously bitten or dogs with vicious tendencies are not acceptable.Wild animals kept as pets are not acceptable.Applicants with horses or farm animals must be reviewed with the underwriter before binding. (1 horse)

Ace – Animals prone to or exhibiting vicious or aggressive tendencies

Allied – Akita, Alaskan Malamute, American Bandogge Mastiff, Boerboel, Bull Mastiff, Cata houla, Chow, Doberman Pinscher, English Bull Terrier, Kyiapso, Neopolitan Mastiff, Rottweiler, Wolf Hybrids, Presa Canario, Pit Bulls, Huskies.They will take a dog from the restricted list if no prior incidents and has his/her Dog Good Citizen Award

ASI – Pit Bulls, German Shepherds, Akitas, Doberman Pinchers, Chows, Rottweilers, Caucasian Mountain dogs, Staffordshire Terriers, Beaucerons, Great Danes, American Bulldogs, Wolf Hybrids AND any mixed breed with these types or any dog with a bite history.

Auto-Owners – No list.

AIG – We have no hit list.  We look for a history of behavior of the particular animal.

You can probably pull a common theme from this and maybe make some sort of weight restriction.

Good luck