Insurance
We have investment properties in Michigan near our local university and we are running into major problems trying to get insurance coverage on them. Our previous carriers are terminating coverages to several properties because no one wants to insure student rentals anymore. When we first started out 4 years ago we paid approx. $600.00 per house. When that coverage terminated (for no reason, no claims filed, payments escrowed etc..) we had to go to a high risk carrier and paid $1800.00 for the same coverage. Now I received a letter that they are terminating because they will no longer insure this "class" which is college students. Our insurance agent found one company that will write a policy for $3500.00! I was hoping someone had any ideas?
Unfortunately it is tough to find. You may be fortunate that you get an offer for coverage. Check the rate with a $5000 or higher deductible. It will probably make a worthwhile premium difference, especially if you have multiple units. What company offered the $3500?
Contact a few independent insurance agents. Usually the underwriting criteria of the carriers that they represent are more flexible than those of standard carriers.
Consider working with an Agent who knows the RE business, regardless if they are independent or not. If a captive Agent has access to products (regardless of company, as some "captives" can broker if their main carrrier doesn't offer coverage), and really understands the proper way to protect you, don't discount his or her ability to do so because they aren't "independent". Check your local group for referrals, or to see if an Agent is active in helping members. Our local group has 2 indpendent Agents that are active RE Investors, but use our "captive" carrier to insure their own property(ies).