All Forum Posts by: Nick Bendick

@Account Closed just gave you some great advice! I would chime in also that when you officially convert your place into a rental remember you need to contact your insurance agent regarding landlord insurance. I am assuming you have a regular homeowners policies which provides coverage if you live in the home. When you rent it out you need a new policy that covers your home as a rental. 

@Mike Taravella send me a PM with you phone number and a couple of times that work to chat either this week or next. Also send your analysis over. 

@Ruary Roberson Sounds like you are excited and ready to get started! I would ask around for a referral for a real estate agent that works with investors. I would make another post in BP and title it need a real estate agent referral and agents will respond to you. Work with them to find an area that makes sense then have them start sending you some listings. BP has some great calculators so you can analyze the properties to help you understand what numbers will make sense for you. 

I would have a conversation with your insurance agent on how to structure the policy. Some companies have different underwriting guidelines and will do things differently. Will the home be titled in your name and the seller is essentially playing the lender and holding the note? In that scenario you most likely will need to purchase a homeowners/landlord (depending on use) policy in your name then list the seller. This is broad advice though...my suggestion again is to speak with your agent about the specifics of the deal so they can guide you. 

Contact a local insurance agent and they will guide you. You most likely will need special insurance commonly called builders risk for a flip project. If you buy a policy that does not meet underwriting guidelines and have a claim, the insurance company will deny the claim. 

Also ask for proof of current insurance from your licensed GC. This is a common questions so they should have no issues providing it. 

A 10% increase after a claim really isn't that bad. I have seen much worse. It's hard to say one company is better than others price wise because rates vary from company to company in each zip code let alone different states. The best thing to do is find a local independent insurance agent who works with investors and have them shop with all there companies. I believe Erie distributes their products thru independent agents so go back to your current agent and ask them to review your policy and shop. 

@Jonathan West I would go to Trusted Choice and search for local independent agents in your area. They will represent multiple companies and will shop for you. Just make sure you speak with somebody who has experience with investors. 

Everything insurance company does things a little differently. This does seems odd to me though. I would reach out to a local independent insurance agent in your area who represents multiple companies and get some new quotes. Since the policy is up for renewal it's also a good time to shop. 

If you have a good amount of personal assets you probably will need an umbrella policy regardless of your rental. An umbrella policy provides excess liability coverage above and beyond your underlying policies for those worst case scenarios. You want to make sure you have more liability coverage than what your net worth equals. 

With your rental I would find out from your agent what the highest liability coverage that is available. Most companies will max out at $500k then you need to rely on an umbrella policy for additional coverage. Make sure you let your agent know that the property is held in an LLC when setting up the insurance policy so they provide protection to the LLC.

Remember when you buy insurance on your rental home to let your insurance agent know the property is held in an LLC. That is often overlooked and people will try to insure the rental home in their personal name.