All Forum Posts by: Matt Moylan

Are you flipping or renting these properties? 

I ask because I'm curious as to why you prefer a DP-1 policy?

Depending on the size of your portfolio and types of properties, there could be a number of great options for you.

I usually suggest connecting with an insurance broker who has multiple companies, works in all the states you current invest in and have a potential interest in investing in, in the future, and one who also specializes in working with investors.  Not all insurance agents are educated about real estate investing.

Regarding the umbrella, most companies have a maximum number of properties they will extend coverage to. Also, if you have any of your properties in an LLC, not all companies extend coverage to an entity like an LLC, so that is one other thing to consider asking about.

If you have any questions, feel free to ask away!

The airbnb space is tough in general.  Add in that it's a rural area, there is going to be even more difficulty.

Just curious, your insurance guy, are they a broker or one of the captive agent companies (ex: farmers, st farm, allstate, etc.)?

This makes a difference sometimes as brokers can have more options than just one company option.

Here are a couple articles with some scenario's

https://www.independentagent.c...

https://www.reddit.com/r/Insur...

For the amount of coverage you receive, the price you pay is minimal. 

Couple of my top suggestions:

1) Use a brokerage (preferably who is licensed in all states you currently invest in as well as where you envision your portfolio expanding to in the future)

2) Work with someone who knows about real estate investing.  Not everyone in the insurance world does.

3) Ask what the different levels of coverage they provide.  Compare the coverage to the price you pay and make your decision based on what you feel is fair for the coverage you're going to be getting.

Hope this helps!

@john mocker is your guy

@Mrinal Parashar what you're encountering is very common.  Most companies have a limit of what they're able to offer.

Some companies have a commercial type of policy they can move the policies to, but not all.

There are companies who have a strong appetite for investors and there are also specific rental property programs available.  

I recently helped 3 of my clients find coverage for their portfolios between 10 properties and 51 properties, so it can be done.

My suggestions is to find an insurance broker who works frequently in the real estate investment space, who has the knowledge of coverage, AND the available companies to be able to help you now and as your portfolio continues to grow.

For your second question, I would also 100% suggest looking into implementing an umbrella.  Depending on whether the policies are written on a personal or commercial form type, will depend on your umbrella need.  

If it's personal, usually you have to have your auto and often times your home policy with a carrier to be eligible for the umbrella (but not always)

If it's commercial, it's much easier to only put your rental properties only under the umbrella policy.

Finally, if you have any amount of entities (LLC, Trust, etc.) which own the properties, you would want to ensure the umbrella extends coverage over those entities. Some carriers do and some don't provide coverage.

Hope this helps!

@Garrett Terrell in addition to what John mentioned, it also depends on the type of policy the insurance is, where you are located (because insurance is rated differently across different counties, states, and regions), potential CAT losses (TX is different than CA, which is different than FL, which is different to other states), and even down to your individual underwriting score with that company.

Lots of moving gears that makes your questions a very loaded one that will differ person to person

@Maureen Rhodin I second What John said.  

Umbrella policies extend coverage in addition/on top of your underlying policies (what John Listed out in his comment).  If there is an asset which is not listed on the umbrella, the umbrella most likely wont extend coverage to it.

@Larry Dowde I assume you've found coverage by now, but what you were running into 6 months ago, you'll likely continue to run into.  The insurance industry has REALLY tightened in Colorado and California.  So much so where, like you've experienced, carriers are massively increasing rates, limiting coverage available, or pulling out of the state completely.

If you're still needing assistance, I may have a resource for you.  Feel free to shoot me a DM to speak further.

@Doreen M ODonovan Same thing that I wrote to Larry, I may have a resource, so lets touch base and I'll try to get that to you.  

Where is your portfolio? Just curious