All Forum Posts by: Tommy Brown

Hello Everyone!

How much trust do you have that your insurance agent has correctly insured your investment portfolio on a scale of 1-10?

I am curious to see your answers and why!

Under full disclosure, I am an insurance broker in the Dallas area.

Regards,

Tommy Brown

Hi Diana,

It should be a great place to invest. Having just moved from California to Texas this last month, it was almost impossible to find a single Uhaul trailer. People are moving from California by the thousands to Texas, especially the Austin area. This coupled with the Tesla move to Austin should positively affect property values for years to come.

Regards,

Tommy Brown

Hi @Ryan Bird,

There are companies that will insure a rental property owned by a SMLLC in addition to those under your personal name. However, this means that your aggregate (total) liability limits are shared for suits or liability claims under your personal name and LLC.

Some companies will offer a personal umbrella policy with the LLC as the named insured to cover the rental property. This would likely be the preferred route to go. If your rental property has more than 4 units, than you would need a true commercial umbrella policy instead.

I hope this helps answer some of your questions, and I am happy to assist if you have any further questions!

Regards,

Tommy Brown

Hey Patrick,

I am new to the DFW area, and I am an insurance broker specializing in insuring portfolios (commercial and residential) for real estate investors. I would love to network!

Regards,

Tommy Brown

Congratulations!

You should speak with an independent insurance broker who specializes in the needs of property investors.

You will likely need a short-term vacant/renovation policy to cover the structure and your premises liability while rehabbing the property. Given the number of tenants, this property may need to be insured on a commercial policy form similar to an apartment building.

The liability is highly important if the property is in your name individually. The amount of liability coverage would optimally be equal to the your assets plus 5 years of income to properly protect you financially in the event of a severe judgement against you.

If you need any help or would like broker recommendations, I am happy to assist!

Regards,

Tommy Brown

Hi Shawn,

I am sorry to hear about the damage to your rental property!

As noted by others, the most important thing to do as soon as possible is to prevent further damages from occurring. Keep invoices from this damage mitigation for potential reimbursement from insurance carriers. You should also file a claim with your insurance carrier as well as with the HOA's master policy. If you have a professional relationship with your broker, I would suggest emailing and calling them for their review of options, deductibles, and CC&R review to help with your specific claim.

The CC&R's for the association will outline who is responsible for insuring different aspects of the building. and it is likely you will have the HOA's insurer, your insurer, and any tenant's insurer involved in the investigation process.

I wish you the best, and please reach out with any questions!

Regards,

Tommy Brown