All Forum Posts by: Jason Bott

Quote from @Henry Clark:

Quote from @Jason Bott:

@Henry Clark #1 sounds to be a carrier specific underwriting guideline.  We haven't run into that stipulation with the Midwest carriers.

Insurance on any Property coverage (Commercial, Industrial, Homeowners) is taking a rate hike nationally in 2023.  All reports point to this trend to continue through 2024.  The % rate increase will depend on how good/bad the natural disaster are for the rest of 2023.

 If you could Ask your carriers the difference between bonded warehouses, warehouses and self storage coverage.  Do they view liability different between the three.   Thanks. 

Henry, I can answer that.

A self storage operation is classified as such if the owner of the their property is the one taking them in and out of storage.  The storage facility does not get involved with the receiving or shipping of Property of Others.

A Warehouse receiving and shipping assumes Care, Custody and Control of the product without the owner being involved.  A Warehouse covers this Liability with the purchase of Warehouse Legal Liability coverage.

As you can see, there is much more exposure with a Warehouse operation than a self storage facility.

Quote from @Miho Y.:

Hi all, one of the prospects is an owner of a car repair shop near by our rental property. Our property has a large outdoor parking space, which they will be naturally & possibly parking their clients' cars. Is there any insurance the TENANT can insure us in case their car get damaged or their car damages our property. Thank you in advance.

You should require your tenant to carry business insurance specifically tailored to their auto repair operations. This step involves adding you as an additional insured on their business policy, along with designating your property address as one of their official business locations. This arrangement has the valuable benefit of extending their commercial General Liability (GL) coverage to encompass your property.

@Greg McKinney reach out to @Cameron Moore.  He is active on BP and based in TX and should be able to help.

@Henry Clark #1 sounds to be a carrier specific underwriting guideline.  We haven't run into that stipulation with the Midwest carriers.

Insurance on any Property coverage (Commercial, Industrial, Homeowners) is taking a rate hike nationally in 2023.  All reports point to this trend to continue through 2024.  The % rate increase will depend on how good/bad the natural disaster are for the rest of 2023.

Quote from @Adam Berlinberg:

Looking at a 6 unit rental as my first multi-family. HCOL city using 30 year commercial loan fixed at 6.5%. Total cost $1.15 million with 25% down. All units currently occupied and is in a trendy part of town in which occupancy hasn't been an issue. Current collected rent is at $86,000, and is under market. Getting up to market will bring it around $93,000. Owner responsible for water and trash. Taxes are $5500 on current value, and insurance around $2400 for the year. Big ticket items including roof updated within past few years. I'm getting it around a 7% cap and 7% COC. Seems like a pretty good deal? Am I missing something? Will probably go into it with a partner as I just tied up a bunch of cash on a syndication and am stretching a bit.

 

Adam, insurance options in areas with Wind/Hail exposures have become limited. I recommend getting this property quoted with your insurance broker to ensure you can secure coverage at the desired $2,400 price point. 

While most insurance carriers will likely maintain existing business if it is performing well, they are currently accepting new business at significantly higher rates. In the past month, we have observed insurance rates increasing by 2x to 2.5x.

@Guy East most PM policies will require you to be within 75 miles of the property.  It's possible underwriters see this and shut it down right away.

We have many current clients who have this blended model, but they are local to their properties.  

Additionally, they will place the PM business in a new entity, separate from the LLC's that hold title to the properties. this separation makes it eligible for a larger # of insurance carriers.

Quote from @Claude Florvil:

Hello, I have a 2 unit property and would like to use one of the units for short term rentals. I understand that I may have to use a commercial coverage or landlord/dwelling coverage insurance plan. But commercial coverage is more comprehensive for short term rentals. WIll it also cover the unit where I have a long term tenant? Or do I need two (2) insurances? Please let me know your thoughts? Thank you!

If both units are in the same building and situated on the same parcel of land, they will need to be insured with a single insurance carrier. This insurance carrier would then add an endorsement on the second unit to cover the exposures of the Short-Term Rental (STR).

@Yosef Ajami specifically what risks are you referring too that you looking to protect yourself from?  A syndicator can be exposed to Work Comp, Fiduciary claims, General Liability, Cyber, etc.    

@Zackery Smith unfortunately the pricing sounds about right for a 1965 building in FL.  

Are you an experienced professional in the real estate industry with a passion for customer service? Look no further! I am seeking dedicated Customer Service Representatives to join our dynamic team at our insurance agency, specializing in serving real estate investors.

Responsibilities:

• Provide exceptional customer service to our esteemed real estate investor clients
• Respond promptly and courteously to inquiries and concerns via phone, email, and other communication channels
• Assist clients with insurance policy inquiries, claims processing, and general insurance-related matters
• Collaborate with our sales team to provide comprehensive support and ensure client satisfaction
• Maintain accurate records of client interactions and transactions

Requirements:

• Previous experience in the real estate industry is essential
• Strong understanding of real estate investment principles, terminologies, and industry practices
• Excellent communication skills, both verbal and written
• Proven ability to deliver outstanding customer service and resolve issues effectively
• Detail-oriented with exceptional organizational skills
• Proficient in using computer systems and customer relationship management (CRM) software
• Ability to work independently and as part of a team in a fast-paced environment

We offer competitive compensation and benefits packages, a collaborative work environment, and opportunities for career growth. Join our team and be a part of an agency that specializes in catering to the unique needs of real estate investors.

To apply, please send your resume, cover letter, and any relevant certifications or licenses to [email protected]. 

Don't miss this opportunity to combine your real estate expertise with your passion for providing exceptional customer service. Apply now and embark on a rewarding career with our real estate investor-focused insurance agency!

Note: We respect the privacy of all applicants. All personal information shared during the application process will be kept confidential and used solely for recruitment purposes.