All Forum Posts by: Ron Singh

trying to see if its worth adding a sewer insurance (around 40+yr old home in CA) there is a huge tree in front yard and i have a feeling now or later it may cause issues in sewer line, which is under/near tree.

Anyone had good experience and suggest the process, and also how to make sure, insurance company won't create issues in claim in case needed in future (hearing horror stories on it)

how to go about it ? and what to ask/make sure is covered.

I also just purchased homeserve insurance for exterior sewer lines.  Is this a hoax?  Does anyone have any experience with an exterior line claim?

Thanks

I have it on my property on the east side of Des Moines.  It seems very worth it to me.  It backed up quite a bit 3 winters ago when it was really cold.  I spent near $500 on several roto's and a cam job.  The orangeburg is collapsed and it's only a matter of time before it's completely plugged.  

$10/month covers the roto's when needed and eventually the whole job.  Seems worth it to me. 

@Ron Singh usually a good syndication group can give you some idea of the loss estimate per deal for the year end k1. It doesn’t matter if you invest January or December during a calendar year. You still get the loss. Most importantly if you need losses for 2023 you must invest before December 31, 2023. There is still time left to get into a deal or buy one!

 in general if you or your wife has w2 from non re jobs such as realtor then you arenot reps there are bunch of thread about this...

Ron,

It's been my experience that most insurance policies "do not" cover the cost to fix underground pipes when there's no resulting damage to the home/structure itself.  Many times underground pipes burst due to age/decay, normal wear and tear, shifting clays/foundations, freezing, or because of a tree root.  None of that really matters if there's no resulting damage to your home/structure itself.  Most carriers see this as a maintenance issue if this is the result of your situation.  

For example, if your sewer pipe bursts due to a tree root puncturing it, but doesn't cause any resulting damage to the inside or outside of your home, then most insurance carriers won't pay to fix that pipe.  Since the pipe is the only item damaged, they see that as a maintenance responsibility, and that falls back on you as the owner.

That said, if their "is" resulting damage to your home/structure, then that's different.  While the cost to fix the actual pipe itself still likely won't be covered, the cost to repair the resulting damage to your home/structure typically "is" covered.  So if the burst pipe causes sewage to seep into your house, back up into your sink, toilet, tub, shower, etc., and has ruined your floors, walls, etc., then in this case you would likely have coverage.  You would just want to ensure your policy affords coverage for water damage, along with water and sewer back up coverage.  

Since your request has a very specific concern, I'd suggest you visit with a few different agents (along with your current agent) about how their policies will (or will not) respond to your specific situation.  While they can't tell you 100% you have coverage because there are way too many variables and scenarios to consider, they should be able to confirm what would likely be covered and what wouldn't given your specific situation.  Then once you find a product that seems acceptable, ask that agent for a copy of the policy form so you can review the language and all the necessary exclusions and endorsements surrounding underground pipes, water damage, and water/sewer backup coverage.  

Hope you find this helpful!  Good luck!

@Kim Coleman @Stanley Parsley

Last year, we had a sewer back up at one of my properties.It was an emergency, we called Len-the-plumber, they investigated, and said that pipes outside of the house to the city line need to be replaced. 

However, I called 311, they came out, cleaned out their end of the things, len-the-plumber guy did some stuff on our,and problems was gone. 

However, one of my friend who works in the city told me about HomeServe, I purchased the insurance just in case, and that was it. 

 9 months later,almost 3 weeks ago now, I got a call for the same issue, plumber came investigated, said the exact same thing, quoted for 5k. 

We first called home insurance,did not really get any help, then we called Homeserve. Their plumber came, investigated again, said the same thing which is all the pipes outside of the house, in the yard to the city line, were destroyed because of the tree roots. 

They said it is covered. It took them 3 days, the first they dug-in with caterpillars, replaced the older pipes, put the new ones in.

Cost us 0 dollars. 

I highly recommend it. I already bought more coverage for my other properties.

I'm assuming by lock in period you mean pre payment on the loan. This varies greatly depending on the loan and the business plan, but generally speaking you should plan on your money being illiquid in a syndication for about 5 years. My company Apogee Capital does syndication projects as do many other people I know. The important thing is to develop a relationship with a syndication sponsor before hand to satisfy SEC requirements (if a 506b) and even more importantly to develop trust with them.