All Forum Posts by: Kevin Hoag

This depend on what you are working on. There are many carriers that offer this product. Two national companies you can go to that focus specifically on this product are US Assure or AU Gold (except NY) If it is a residential rehab you can go to Foremost for a quote.

There are many great carriers out there for investment property insurance. I prefer to insure with Foremost. They can insure both rehab projects and rental properties.

This is a good looking policy. I agree with everyone else. First looking into extended liability from your home policy. Then bump your primary home to 1mil. You will then have 1.3mil for your rental. Adding an additional home cost around $40 per property. This can sometimes be less than the cost to bump your rental policy from 300k -1mil. Best of luck with the property

Andi, This comes up all the time. As investors our goal is to lower our expenses and maximize our profits. Insurance premiums depend on many factors. One of the biggest rating factors is the Zip Code. The same property quoted the exact same way just in 10 different zip codes could result in 10 different prices. If you have individual policies the price may be higher than a commercial policy. Your ranges are about right. Singles $400-600(B class), $600-800(C class) $800+ (D-F class) Duplexs can run $800-$1500 Triples can run $1100-1700 Quads can run 1400-2k

Hey @Gaurav A. Damage/Vandalism done by the tenants is most likely not going to be covered. This coverage is incase your home get "tagged" or possibly you have aluminum siding and the lower 6 ft get ripped off. This can also cover if your property just became empty (less than 60days) and people break in and vandalize or damage your property. Any time you have a claim it is going to be review by an adjuster whos job it is to determine if the claim should be covered or denied.  

Hey @Gaurav A. Insurance will not cover any of the items you mentioned. Those items are just some of the non-insurable risks we take as landlords. To prevent those items I suggest lots of tenant screening questions (back-round check, credit check, eviction search and income verification) and an annual maintenance plan on your properties. 

To answer you question "Loss of Rents" coverage will kick in when you suffer a covered claim that makes the property Inhabitable. If the tenants must move out of the property for a set time frame or possibly have to break the lease completely because the damage is catastrophic then loss of rents will kick in.  I suggest having at minimum 1 year of rent rolls for your Loss of Rents coverage. If you can go with 18 or 24 months. It is a great coverage item that should never be over looked.

Hey @Anthony M. removing the pool from your property will give you a lower annual insurance premium. There is no way however for any of us to give you an idea on the savings. Every insurance carrier uses different rating factors in their pricing. The only real way to know is to ask you agent to run you some example quotes.

As for the city assessment value. I think you will need to speak with an attorney to see how much they will charge to take care of this and then figure out how much it will actually reduce your taxes by. Could be a lot of hoop jumping for little saving.

Hey @Randall Prosise I would increase your Liability to 1mil. I do not think 300k for a 4unit is enough. The cost will be minimal to increase that number. I would also make sure to add Loss Rents minimum amount 12months of rent. I prefer to see 18-24 months if possible. Lastly, I would consider increasing your deductible to 2.5k or possibly 4 or 5k.

Hey @Greg Tunes Yes a vacant policy will cost more than a normal homeowners policy or landlord policy. The reason behind this is because a vacant house attracts problems. Thieves, vandals, squatters, kids, animals, bugs all of this equals damage to the home and no one is there to monitor any of it. Also houses are not designed to sit empty with out any maintenance and attention for a while. In Louisiana, I can only imagine what the humidity does to a home that is boarded up with no ventilation. All of this equals higher rates than homes being lived in.

Hey @Ryan Moore your old agent should be able to reinstate your old policy depending on the time frame. the agent may have used information off the county auditor site which could have frame construction. I am not sure how the 2 stories did not get caught. Human error and hopefully it wont cost you any money. Like @John Mocker stated do not let your policy lapse in coverage. Best of luck.