All Forum Posts by: Payman A.

Thank you both for your replies.  Grounded and calming advice will not only put me on the right track but will also help  me sleep tonight.

Try vfisnc.com.  I've been with them for over 10 years and though never had a claim, I've been very  happy with their customer service.  G/L

Hi all and as usual, very comforting to have BP to share & ask questions in.  So below is the quick and dirty overview of my situation:

- claim #1: submitted earlier this year for substantial water damage in LA rental property and just received payout.  (incidentally, I had already switched carriers for higher liability limits before claim so current carrier is not the one who paid out).

- claim #2: also submitted earlier this year for vandalism in NC rental property and just received much smaller payout.  (I would not have even considered claim but miscommunications with State Farm agent led me to believe this claim would not affect my policy)

- 3 carriers above are different companies but I do have other policies with other carriers as well.  

- my only insurance claim in 28 years of car/home policies was for a windshield (road damaged) 10+ years ago

I now realize it is likely for my State Farm policy premium to increase and after having read all sorts of horror stories online, I guess worst case scenario would be State Farm cancelling or not renewing my policy at which point I'd be at the mercy of high risk/$ options.  In that case (or case of significant rate increase), can I expect any of my other existing carriers to do the same?

Thanks in advance and I'd appreciate any thoughts/suggestions,

Payman

Thank you both BreAnn and Jason!  This conversation has allowed me to focus on what now seems to be the best course of action and that is for my PMs to have WC policies and name me as additional insured.  With respect to our tenants renter's policies, it will be a little more difficult to require this of low rent tenants but I have already discussed with my PMs and we are working on an approach to make sure they all have in effect policies so my policy is not first in line in case of a loss due to tenant negligence (even if we have to contribute to the cost).  Thanks again and hope to gather enough information in the coming months to be of similar help to other members.

Hi Jason and thanks for the input (saw your other post to me as well).  I have one management company who are husband/wife owners with one office employee so my guess is no WC there.  I have one more "management" who has just taken over some units using a Master Lease.  They are a small non-profit organization providing low income housing to elderly and disable and from what I understand there are no employees there...all board members and/or volunteers.  Still gathering info but if either does not already have WC am I back where I started?  My next thought was my wife and I taking out a WC policy ourselves but I believe the mins would make it cost prohibitive even if we as an individual owners of properties in different states could do that.  

Hi all, I ran across this post as I just asked a related question. I'd like to add that specially for a privately owned/mortgaged property (not owned by an LLC), you might want to find out your risk and exposure when it comes to casual/occasional labor (unlicensed/uninsured handymen). My understanding so far is that if a claim is determined to be work related your liability policy, and therefore your umbrella if you have not, will not cover expenses and I don't know about anyone else, but it would be near impossible for me to make sure this type of worker is never hired by a management or even tenant.

I did some research and came up with what Luc mentioned above.  I also think lights and cameras (fake or not) are among the best and least costly deterrents.  I had window units that kept getting stolen and I finally got  my management to remove them during vacancies.  G/L and let us know if you come up with or find anything effective.

Hi all, here is another one I'm hoping to get thoughts on.  My properties are not local and in different states so despite contracts, addendums, & requirements there is no way for me to be 100% sure that either managements or tenants will never use an unlicensed/uninsured handyman for some small job that does not require my authorization.  My concern is if one of these handymen was ever injured resulting in a workers comp scenario exposing me to that liability.  I've already asked all my insurance brokers and none of my dwelling/fire policies cover this or offer an applicable endorsement and umbrellas only extend what existing policies cover.  I have conventional home loans on the properties so LLCs are not an option either.  Does anyone know of a way to avoid this exposure?  Thanks for reading, Payman

Thanks David.  Makes sense and what I'm hoping for.

Hi all,

Thought I'd see if anyone has info/advice on this matter.

Made a cash purchase to renovate and flip earlier this year with one of the main goals being able to show that profit this year in order to offset other losses and keep our DTI close to where it has been. No surprise, we ended up with a couple issues and no way we'll be able to close before year's end so I'd like to consider selling the property mid-project to someone who knows and trusts me so I can still show profit this year and new buyer will basically finish the project/transaction early next year.

Of course, I realize there will be some buyer and seller costs but I think those will be worth spending if we can avoid a big hit on our DTI.

My question is if there are any "arm's length" guidelines/regulations with regards to this type of a transaction if there are no loans involved.  I don't see why there would be but thought I'd get some opinions.

Thanks,

Payman