All Forum Posts by: Kevin Hoag

Insurance rates are going up across the country. Many carriers are taking double digit rate increases. As many will suggest, find an independent carrier that can quote your building with multiple carriers to see what other rates are out there. It may take several carriers but there are insurance companies out there that are still offering good pricing. I have scene good rates with Utica Insurance for habitational quotes.

As @Randy Rodenhouse mentioned you will need to have the LLC listed on the title of the property to be able to put the insurance in the name of the LLC. The primary named insured on the insurance policy needs to have equitable interests in the property. If the property is owned in your personal name then you have to keep the insurance in your personal name. If you own the property free and clear you could do a quit claim deed and transfer ownership to your LLC and then have your insurance agent list the LLC as the primary named insured. If you have a mortgage on the property then this will most likely not be possible as the "come due" clause could require you to pay off the balance of your loan before transferring ownership.

As far as I know you will most likely not be able to transfer the title to another entity without your mortgagee "come due" clause kicking in. I would keep the property titled the way it currently is. You can speak to your lender directly about this and see what options they offer. Tree claims are difficult because there is limited coverage offered on insurance policies for the tree and tree removal. Most likely you will end up coming out of pocket for the tree removal. If the trees caused any home damage or other structure damage that should be fully covered. Since you occupy the property you will not be able to get a landlord policy so a HO3 policy is really your best option. 

Your lender will also require that you maintain insurance on the property. This presents three pain points, if you do not carrier your own insurance the lender will force place an insurance policy on your property which will be very expensive. Secondly If you do not fix the damages you most likely will not be able to get coverage by a new carrier or will be dropped after the inspection takes place. Lastly, if you have a lapse in coverage it becomes more difficult to find a new insurance provider. I would begin getting quotes for coverage as soon as you can. If income to fix the repairs is an issue I would consider getting a new credit card that offers you 0% interest for the first 12-24months and fix the repairs then pay the card off over time. Keep that card afterwards as your rental property card to pay for future expenses and repairs making your accounting/taxes a bit easier.

Since you are renting out the property you will not want to use a home owners policy. Homeowner policies are designed for a homeowner who occupies the property. This comes with a lot more coverages that you would not need as a landlord. A Dwelling Policy or Landlord Policy is mainly going to cover the physical structures, liability and loss of rents. There are other coverages as well but those are the key elements to the policy. Insurance companies price the two types of policies based on different factors. That being said, if you were to have a claim with the wrong type of policy in place you will most likely be denied coverage. It is important to let your insurance agent know so they can provide you with the proper policy. 

Many of the portfolio insurance policies that I have scene require at least 5 properties to be on the policy. I would suggest working with an independent agent that can quote your properties individually and possibly on a commercial policy. You can always add an umbrella policy to the 4 individual policies to maximize your liability limits.

I would look into US Assure or AU Gold. They both offer full replacement cost builders risk policies. You may also want to contact a local independent insurance agent. With all of the changes in the insurance industry an independent agent is your best option to receive multiple insurance quotes.

@Kathy Villagomez happy to help you out. The cost for your landlord policy will vary depending on many different factors. Some of those factors are based on the location of the property, the homes loss history, coverages you are looking for, any added endorsements, and your personal credit score. That being said there is no accurate way to predict what the rates will be. Your best option is to get a few quotes and compare them. If you would like to have a more in-depth conversation feel free to reach out. 

For you SFH's landlord insurance policy I recommend going with a replacement cost policy, the maximum premises liability limit the carrier will offer, a small amount of personal property coverage and loss of rents coverage equal to at least 1 years worth of rents. There are other coverages I would recommend but those are the bare minimum.

For your tenants renters policy I would require them to have a minimum of 300k in liability.

@James Taylor I can help point you in the right direction. I work with many of the local property management companies and I tend to hear all the good, bad and ugly about each company from all of my BP insurance clients. Send me a PM and I will let you know who is most popular and who to stay away from. I would also love to hear who you are currently having a bad experience with.

@Subhosh Kiran Perikala I can provide you with several lenders contact information for both residential and commercial loans. Just let me know if you still need referrals. 

Yes, you will need an insurance policy for your unit. Most likely you will just need a condo landlord policy. You will want to review your HOA by-laws to see what you are responsible for. Since it is an 8 unit building I would think the HOA has an insurance policy for the exterior of the building and you will be responsible for the interior of your unit. This is what we would call studs in coverage. Your HOA may also have a minimum require liability amount most likely 300k. I would also make sure that your policy has loss of rents coverage.