All Forum Posts by: Account Closed

Hi Blake, 

Congratulations on growing your business so quickly, especially in the current state of the market. 

I think you may have been misinformed. As a licensed insurance agent, I can tell E&O and professional liability are essentially the same thing. If you carry one, you carry the other. I am not sure why you were given two different quotes for professional liability and E&O – my guess is one of the quotes has more add-on coverages and consequently is more expensive.

In regards to the contractor question, just make sure that you always use licensed contractors or handy men and verify that they have a GC or worker’s comp policy in place. In your example, if the contractor were to cause an issue, their GC or Worker’s comp will come in play.

All good questions. I think it’s very important that you are thinking about these things. I hope this helps and let me know if you have any other questions.

Hi Derek, 

You would definitely both. Homeowner's in your unit and a landlord or commercial policy for the other unit. The company in my profile can help. Feel free to reach out to them.

Thanks,

Hi Christopher, 

I am a bit late posting here, but hopefully you will still find this information useful. I would ask if the following common exclusions are covered or can be bought back, if you don't want to take the risk for the following: Mold and Fungus, Sewer and Drain Back Up, and flood. Flood can be pricey, but if the property sits on a flood plane, I would definitely recommend getting this cover. Sewer and drain back up example would be your tenant's kid shoving a toy down the toilet.

It's hard to tell what is and isn't covered without looking at the full policy, however I can imagine that the difference between A and B is Basic and Special Form. The difference between the two are that the special form has coverage for Theft, Water Damage and Weight of Snow Ice and Sleet. Basic does not. And theft doesn't apply to contents, it applies to a stolen AC unit or copper piping for example. Water damage would be burst pipes, or overflowing dishwasher. I would just clarify with your agent what is and isn't covered with each option. Some companies can add these coverages for additional premium, while others exclude them altogether. So it's always better to shop around.

Please also ask what is covered and excluded on the liability policy. Typically these policies come with dog breed exclusions. So if your tenant had a dog on the property and it bit a neighbor for example, certain breeds are excluded and you may be left responsible for the damages since the incident happened at your property. There are other exclusions, but it's better to know what they are, so there are no surprises.

As for property valuation, insure for what you think it will cost you to rebuild the property with alike materials. Add loss of rents coverage, so if you had a loss at the property and it becomes uninhabitable, you can receive "rent" payments while you are fixing up the property.

That's what I would recommend. Hope this helps. 

Hi @Katherine Langevin,

I work for NREIG and we can insure properties and list any third party/additional insureds or mortgagees needed, that’s not a problem at all. Our carrier rates vary all across the country, and I would definitely recommend at least requesting a proposal so you can compare. Please be mindful, cheapest coverage isn’t always the best coverage as it may leave you and your business exposed. I recommend asking your agents what is and isn’t covered so you are comparing apples to apples. Let me know if there is anything else I can help you with. Thanks! 

Hi John,

I would ask for a proposal for both property coverage (direct physical damage to the property - fire, wind, theft...etc.) and liability coverage (bodily injury or property damage to a third party - your slip and falls). With property coverage especially pay attention to any specific exclusions ( examples of typical exclusions are mold and fungus, sewer and drain back up, flood and so on.) Ask if any of these can be “bought back” if you want coverage. 
In terms of the amount of property coverage, I would insure for what you think it would cost you to rebuild the property. When deciding on a property deductible, take the smallest claim you would ever file and double it. If you wouldn’t file a claim for a $1000 loss, don’t carry a $1000 deductible. With Premises liability coverage, ask for $1,000,000 liability limit. It’s great if they offer an aggregate limit that’s greater than $1,000,000 per occurrence. So if you have more than 1 occurrence in 12 months, you are not limited to 1MM. Please let me know if you have any questions. 

Juliana 

You would need property coverage which covers direct physical damage to the property, like fire, wind/hail, vandalism, theft and so on. Special Form coverage is always the most comprehensive, but comes with specific exclusions. Just make yourself familiar with them. I recommend adding sewer and drain back up. Loss of rents is fairly inexpensive so I would add that too. If you have any detached structures on the property, like a detached garage or a shed, make sure you have Other/Additional Structure coverage.

In regards to liability coverage, investors typically choose $1MM per occurrence limit for their general liability. I would ask if there are any breed exclusions when it comes to the general liability policy, if you allow pets on the property. Let me know if you have any questions. I'm happy to help.

Jacob is correct - let your insurance agent know before you start renovations. If you don't, your claim could be denied in an event of a loss at the property.

The cost is typically higher when it comes to insuring properties under renovation, as carriers see more exposure when it comes to insuring this type of risk. But that's not always the case, I recommend shopping around. Keep in mind, cheapest coverage isn't always the best, as it usually comes with additional exclusions. Make yourself familiar with what is and isn't covered, so you can make an educated decision on the level of coverage you want based on your risk appetite.

Hope this helps!

Hi David,

Just wanted to post a quick note here and say that in addition to rental (occupied) properties, we also insure vacant and renovation properties. My apologies if you have been misinformed. And I am happy to hear that we were able to beat the rates of other insurance agents in your area. @David Moore@Karen Higgins

Hi Simon,

I work for NREIG and I took the liberty of researching your claims situation. I’d like to point out that Affinity Loss Management Services that has been helping and guiding you through the resolution of the claim is there to do just that for AGM clients. They do not adjudicate claims. However, what they do is advise clients based on their experience whether the carrier will approve or deny a claim. We do a very thorough job of selecting carriers we work with. Some examples are, Lloyd’s of London, Acceptance Indemnity, UNI and others. All of which are AM Best “A” or better rated companies.

Due to the fact that the incident was not reported to us within the allotted period of time, we’ve simply advised you that the carrier would likely deny the claim based on the circumstances of the loss. However, we have submitted your loss to the carrier so they can make that decision based upon the facts of the loss as they relate to the policy and will inform you of the developments.

Thanks, Nick! Komal - you can find our website on my profile page.