All Forum Posts by: Kaushik R.

Thank you all for your responses.

Quote from @Kerry Baird:

1. In my own situation, we went a long time without insurance.  When I looked to refinance, I had to get insurance again…a month later we had a fire in the garage.  Insurance covered it.  When there is a sum of money in the bank, I’d rather buy another property than pay for fire damage, and I’m happier with the insurance coverage.  That said, we have not made a claim up until the fire. 

2. Get a conventional mortgage. You could have 10 of these, and they get progressively difficult. Mortgages 1-4 are easier to get in place. Get a HELOC, which is possible but more difficult to find on a rental property, and is much easier and cheaper for an owner occupied property.

What I have seen is if there's no insurance, it's treated as a lapse and insurance companies can decide not to provide coverage so did you face that in your case?

Quote from @Theresa Harris:

For your first question, how much will it save you on insurance and how likely are you to make a claim?  

For your second question-either refinance it (you say it is mortgage free, so get a mortgage and pull out that money) or try a home equity line of credit (may not work as it is a rental).

The difference in insurance quote with 5% and no coverage is ~ $1200 for the year. I haven't filed a claim all these years but insurance is for the what-if and to be used for the high-ticker items, but chances of damages exceeding the 5% is low.

The rental (SF) is paid off i.e. I do not have any lien or mortgage on it and there's a tenant.

1. I am currently carrying hazard insurance. I can buy landlord insurance without coverage on roof (wind/named storm peril) but is it worth the premium? It's a 70's build. The insurance quote at 5% wind/storm peril basically meant a new roof would be out of pocket for me.

2. How do I tap into the home's equity without selling?

Roof is 8 years. Owen what you are saying is if a storm caused extensive damage to not only the roof but other parts of the structure as well, that damage may still exceed the high deductible, so it may still be worth the additional premium.

The Landlord insurance policy quotes I am receiving has a high deductible for Wind/Hail/Named Storm coverage which effectively means replacing the roof would be out of pocket for me which defeats the purpose of carrying this insurance. Are you all still including this coverage (Wind/Hail/Storm) and paying the premium for it or are you buying policies without Wind coverage?

Is Water backup endorsement important to add on? The property does not have a basement or sump pump and is not in a flood zone.

I am looking to get something like a Termidor application done. The property also needs Foundation drip zone installation. Which should I get done first? It looked to me like the Termidor application would dig up the drip line.

I am looking to get something like a Termidor application done. The property also needs Foundation drip zone installation. Which should I get done first? It looked to me like the Termidor application would dig up the drip line.

Thank you for your reply Seo. The gas connection to the property was turned off little while ago. The property was unoccupied so the water heater continued to run for a while possibly using (remaining) gas in the line is my guess. To start it, will need to get the utility gas service turned on and then perhaps get a plumber out to start if and checkout everything.

Thank you for your responses Ray, Matt, Scott.