All Forum Posts by: Jason Bott

@Neil W. 

what is the sq/ft?

@Michelle Gao 

Your insurance costs will be higher when you are with in a few miles from the coast, I can't remember if it is 5 or 10.  Also, if you can get a home built after 2003 and has good wind mitigation, there is a chance you will have options besides Citizens insurance (the state sponsored insurance program).

@Kyle B. 

The vacant building policy is an option, but it is not ideal for flipping.  A vacant policy typically excludes the following,

A builders risk policy will typically cover these perils.

An added coverage the Builders risk covers is  "Property in Transit".  Think of picking up windows or cabinets form Home Depot and then getting into an auto accident.  Damage to the windows and cabinets would be covered.  The typical limit for "Property in Transit" is usually $10,000 or $25,000.

Hope this helps

@Michael Garcia 

Higher than usual insurance  premiums can be a factor of past losses, higher risk property characteristics, or insuring too much. 

Ask the seller if they had any losses.  You can even ask them to have their insurance agent send you "loss runs"  This is the official report from the insurance carrier detailing the loss and total payouts.

High risk property characteristics in the Midwest right now are any electrical system other than 100 amp circuit breakers & a roof more than 20 years old. 

Regarding insuring too much, I had 1 client sell 88 units to another and the premium for the buyer was 55% of the seller because he reduced building limits and took a $25k deducible (not for everybody).

@Ryan Mullin 

I sent you a PM

@Jessica Hinman 

I have this happen all the time to my clients. 

You have an issue with the insurance company.  The insurance company has the right to cancel a policy if there is a strong enough "Material Change"  Meaning, I am assuming the policy was underwritten as a SF rental, not as a Lessor of commercial/retail space.   

Worst case scenario, you have a bad claim with a child and your insurance company denies coverage due to "Material Change".  They would have a strong case if you know about the change in exposure and are not notifying them.

There are companies that can provide coverage for a daycare, thats not an issue.   But it is probably an increase of 50%-100% of what you are currently paying.

I will give you a name.  He has been the past president of one of the local apartment associations and works with a lot of my clients.

@Phil C. 

@Andrew S. 

Insurance companies do not like to have their Umbrella sit over other insurance companies.  So it is always best to have the insurance company who is insuring the rentals to offer the umbrella.

Am Fam can do it for sure.

If you don't like the pricing they are giving you, you most likely need to quote out everything.

Good Luck!

@Matt Heath 

Welcome from Milwaukee.

@Aeknoor C. 

I can do a quick assessment, but need to know

sq/ft

building value on the quote

sprinklered?

hardwire smoke detector

Construction

deductible