All Forum Posts by: Jason Bott

@Tyler Henkel I will DM you the companies who are currently offering the best options.  In 2024, pricing and underwriting is changing from month to month.

Quote from @Brie Schmidt:

@Jason Bott do you insure in IL?

 Brie, yes we do IL Are busy with several closings at the moment.  There is no doubt the market is very tight, but there are still options.  We are happy to help.

@Ash Morim 2 items will determine what companies will be interested;  Crime in the area and does it have a pool.  I'll DM you the premium range.

Quote from @Owen Rosen:

Quote from @Hing Lam:

Any recommendation for insurance on 12 unit (North Augusta, SC ) and 24 unit (Aiken, SC) multi family.  Need coverage to schedule closing in the next few days.  Thank you!    Michael Lam   

 I'm sure you'll get some great recommendations on here and get your closings scheduled soon.

The biggest challenge you're likely to face at this juncture is that it takes much longer than a few days to do a comprehensive review and coverage search for these types of properties.  I wanted to point this out as it will help greatly in the future.  

In many cases the agent only has so much control over the quoting process which means there are other people involved that we rely on to produce or approve proposals.  Sometimes these individuals do not work for us but and have their own workloads that we cannot control.

With less time, an agent has no choice but to check fewer channels and many will not be able to work with you at all.  You don't want professionals having to rush and cut corners if that can at all be avoided as the result will always be less favorable to you.

Bottom line is the more lead time we have, the better the result we'll all have.

Good luck!

 I would second Owen's comments.  You can find coverage in a few days, but it will be double the premium compared to options that were developed over 30-45 days.  

At the moment, ALL underwriters have 5x the # of opportunities then they have capacity for.  With it being a rush, they will likely toss it aside and give some reason for the decline.

If you have to close in the next few days, you can go with the higher priced options and look to move it in 90-120 days to a low cost option.

Quote from @Kevin S.:

@Jason Bott. Thanks. Never realized lender would require LLC but it makes sense given the size of portfolio. I assume the umbrella coverage has to equal or exceed the equity of all the property within that LLC?

Kevin, equity within the LLC, or personally owned property, has no relationship with the limits of Liability/Umbrella you can purchase.  

I'd also add that I have never seen a suit come through that had the demand relate to the amount of equity in the property.  Lawyers want the quick payout from the insurance policy.

Hope that helps.

We have seen clients with large #'s of SFR, 50-500 locations have 10-25 locations in each LLC. In talking with those investors, there wasn't an exact $ amount they were protecting, just trying to mitigate a suit being tied to the entire portfolio. They also had a $2M-$3M Umbrella over each LLC.

Another angle on this topic, lending may play a part in why investors have needed to use multiple LLCs.. We have seen lenders request a group of properties moved into a new LLC when refinancing. They are looking to leave behind any unrealized liabilities tied to the past LLC.

@John Fong my team would be happy to help.  I'll send you a DM.

Jeff, I don't have any industry experience, but can give you consumer feedback.

I live in SE WI and many national carwash companies have come into the market and built some very high end facilities.  My family has moved away from the older facilities to the newer facilities as the product is so much better for comparable prices.

Quote from @Noe Gil:

Hi Stephanie, 

Do you mind sharing what insurer you went with? I am not in Baltimore, but there are some national insurers like State Farm and American Family Insurance that insure these types of properties. I would love to learn who you went with. 

Cheers!

 Hey Noe, the companies willing to insure mixed use buildings has changed drastically in the last 12 months, and will change again in another 6-12 months.  Best bet is to connect with an Independent broker and talk to a few other owners of comparable properties.

@Tina Paduck there are only 2-3 options out there.  Many of them will be $400-$500 per $1M.  $1,800 is on the high end, but IL and MA have higher liability rates compared to other states.

I'll DM you the other possible options.