All Forum Posts by: Joanne Tsai

\\Quote from @Benjamin Aaker:

Yes, I have. What you are trying to cover with the umbrella policy is the 'slip and falls', which can easily be a million dollars or more if you are found liable. It also covers your legal fees simply to defend a bogus lawsuit. 1 million is standard for each of my properties. Also, they are relatively inexpensive.

Congrats on your 11th property. I'm glad you have an umbrella policy for the first 10, but when you own them in your own name, a loss in one property can spill over to the others, and personally. If you are concerned about a 1M umbrella that, makes me think that your current policy is way too low for 10 houses. As big as you are, you should consider moving the properties into multiple LLCs (my personal rule is no more than $1M in single familys in one LLC, but this may need to be higher in your area).

Hi Benjamin, 
Thanks for you response, I just want to make sure I understand you correctly, are you saying the premise liability coverage should be 1 million dollar for each occurrence? Our insurer is Traveler and their max coverage is 300K. Do you know any insurer that would provide the 1 million dollar coverage?
regarding moving properties under LLC, what would the process look like? We took loans under the individual name rather the LLC, would moving under LLC trigger a sale on paper? I don't think the bank would be ok with it, correct?

Thanks!
Joanne 

Trump was a developer, he understands at current rate, no one is building houses, and certainly not the affordable ones. His father used to build entry level homes in Brooklyn. I think right now, real estate is not his first priority, he is going to make the government efficient and hopefully balancing the budget and ending wars before he can think about other affairs. However, I am optimistic, once the energy cost is lower, I think inflation number would be lower, and hence there may be some relief regarding the rate (?) 

Hi BPers, 

We have just made a purchase which is our 11th property, yah!

For the first 10 houses (all residential single family homes), we would get a typical landlord insurance policy and our properties are owned in either my husband or my name (not through an LLC). In addition, we have a big umbrella policy.

So, as I was getting an insurance quote for this 11th property, we were told, our personal umbrella policy will only cover up to 10 properties, and anything beyond that we will need to get a commercial umbrella policy. Though the 11th property is also a residential single family home that we intend to lease out. 

After being transferred multiples, finally the agent told us, we need a 1 million liability policy for our 11th house in our landlord policy before they are willing to issue an commercial umbrella policy. She cited examples of potential beam collapses and 1 million dollar is a reasonable amount of liability to carry. I mean, this house is barely 1000 sq ft, and I have to buy 1 million dollar liability in order to get an commercial umbrella insurance? 

has anyone ever encountered situation like this? is there any workaround or advice?

Thanks in advance!

Joanne 

Quote from @Bill B.:

USLI definately does more than 10 properties. I thought they were one of the largest umbrella companies but you’ll certainly find them with any Google search. 

I did have to leave them last year because they had a $1million max liability if any rentals have a pool. So I had to switch to Hudson who I hadn’t heard of but also does more than 10 properties. I’m using them with a $5million limit. 

Ps. Some umbrella companies have switched their base insurance requirement from $300/300 to $500/500k. 

@Bill B.

 thanks! I am def checking it out. 

Quote from @Ryan B.:

Just look for a commercial umbrella. It will do the same thing. I have a personal umbrella and a commercial umbrella from State Farm.

 oh cool, let me check that out. thanks!

Quote from @Owen Rosen:

Quote from @Joanne Tsai:

Hello BP fellow,

Recently my husband and I were told by our insurance agent that since we just reached our 10 properties, we will no longer be eligible for purchasing a conventional umbrella insurance shall we decide to buy another rental property. This sounds a little weird to me, but after calling a few other insurance companies, it seems the threshold of 10 is fairly common. 

We currently own the rentals under our own names (instead of LLC), and we've heard from enough podcasters to skip LLCs and get a big umbrella insurance. I just want to check with the group, are you finding the same challenge with getting an umbrella insurance with increase amount of properties. What do you do to get around it? which insurance company? is there a solution to this?

Thanks!

Joanne

 There are insurance companies that will insure more than 10 properties on a personal umbrella but it can be tricky based on the companies providing the underlying insurance, the makeup of the portfolio, the state you're in, etc.  It's also likely to be more expensive than what you have now but that's all relative.

@Owen Rosen thanks! is it possible to share the insurance companies which would be willing to provide such policy? we haven't got any luck with our own search. thanks! 

Hello BP fellow,

Recently my husband and I were told by our insurance agent that since we just reached our 10 properties, we will no longer be eligible for purchasing a conventional umbrella insurance shall we decide to buy another rental property. This sounds a little weird to me, but after calling a few other insurance companies, it seems the threshold of 10 is fairly common. 

We currently own the rentals under our own names (instead of LLC), and we've heard from enough podcasters to skip LLCs and get a big umbrella insurance. I just want to check with the group, are you finding the same challenge with getting an umbrella insurance with increase amount of properties. What do you do to get around it? which insurance company? is there a solution to this?

Thanks!

Joanne

Quote from @Bruce Woodruff:

Quote from @Theresa Harris:

What about a metal fence?  Not chain link, but galvanized metal.  A few of my neighbours have them and they look quite nice.  Cost may be higher, but you don't have to paint/stain them, so maintenance costs are a lot lower.

Or a rusted metal fence? Those are becoming popular. The panels are shiny when you put them up and quickly acquire a nice patina. All you need are 4'x4's every 8 ft and (2) 3'x6' panels turned sideways. Quick, cheap and easy. I've done a few of these.....they look good for modern properties as well as rustic style....

https://www.cor-ten-steel.co.n...

@Theresa Harris

Hey Bruce,

I have tried to explore your suggestion here, and several vendors I called said they don't know where to get material. 

Would you be kind enough to share your suppliers?

Thanks!

Joanne

Thanks for all the good suggestions, the house does not have a HOA and it's really up to us what we want to put up (though does require a permit). It's in a B neighborhood for working class but a pretty neighborhood in general. Right now we have three graduate students in it as it's close to a sizable university.

Quote from @Theresa Harris:

What about a metal fence?  Not chain link, but galvanized metal.  A few of my neighbours have them and they look quite nice.  Cost may be higher, but you don't have to paint/stain them, so maintenance costs are a lot lower.

 Hi Theresa, 

do you mean steel panels that will still provide the privacy, or the bars that one can see-through? Thanks!