Going To Closing This Week....srtuggling W/ Insurance On Rental Prop

I'm due to close this week on a residential/single family home that I plan to use as rental property. The house a a foreclosed property and is currently vacant. I purchased std dwelling and fire insurance and the lender has now come back and said they require loss of use. My usually insurance agent quoted a very hogh amount because the prop is vacant. I've phoned around and am struggling becuase most insurance complanies want to carry your primary home owners. Got any suggestions? :-?

Comments(4)

  • Devlon1st November, 2004

    Call Jeff Alderette with Allstate out of Ashburn, VA. I believe they are licensed in DC/MD too. He does all the investment properties that I do. He just gave one of my clients an AWESOME quote that was in the boondocks of VA (Luray) and didnt have a fire hydrant near it and was vacant and it was really a good quote. I believe it ended up being around $1500/year when her other insurance agent quoted $6K. His # is: 703-723-8414. Tell him Devon with Equity United sent you. THanks

  • norrist2nd November, 2004

    This should help with general info:

    http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=438

    Also:

    Why would a lender require "loss-of-use" on a current vacant property? Not much income while vacant. I would address this directly.

    Check with an Agent that represents Foremost and/or AMIG (American Modern). They are companies that specialize in the rehab/vacant insurance market.

    Allstate and State Farm are great companies, however, check the time-frame on the vacancy clauses within their contracts. If vacant more than a certain period, some coverages may be reduced and even deleted. Get a copy of the contract, not just the Agent's word...

    Best regards,
    Tim

  • 64Ford2nd November, 2004

    I've had some great quotes from Farm Bureau.

    Also, is it possible to add this property to your current residence with just fire and dwelling / liability?

  • norrist2nd November, 2004

    Quote:
    On 2004-11-02 18:41, 64Ford wrote:
    I've had some great quotes from Farm Bureau.

    Also, is it possible to add this property to your current residence with just fire and dwelling / liability?


    I'd recommend to NOT tie-in your personal liability to a rental or any other "non-personal" liability exposure. We create LLCs, Corporations, Trusts, etc... to buffer against such exposure. Doesn't make much sense to un-do such strategies by insuring as such...just my 2 cents...

    Best regards,

    Tim

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