Insurance For NOO Properties
Can anyone offer me advice on getting insurance for NOO properties.
I am buying properties, rehabbing and selling. Time from purchase to sale averages 3-4 months.
The quotes I am getting for annual coverage (required by the loan people) are very high. Any ideas or recommendations for insurance companies to call for better rates.
What do you guys do?
Thanks;
John Walko
I have all of my NOO properties with Westfield Insurance. This is sold thru Independent Insurance agents. I have had really good experiences with this company and their rates have been really www.competitive.I have had to use them for a claim twice and the adjustor was very prompt to attend to the matter and very fair in the settlement.---EB
I use Zurich on my poperties 110$ per 100K monthly.
Most of the other cheaper ones had occupancy restrictions.
Hi John,
If the properties have tenants, you should be able to get a competetive package policy. If they are unocupied, we use American Modern (based in Amelia, OH), Foremost, and Diamond States Insurance.
Tim
[ Edited by norrist on Date 08/29/2005 ]
I have several NOO properties. They are minimally insured at $100k (because their value is around 70k). Depending on the neighborhood my annual cost is $600 to $700. I just called several insurance companies before closing. What do you consider high insurance costs? Previous claims will also drive your rates up.
NOO that are being rehabbed are very expensive to insure. Not telling the agent they are NOO may have a claim disregarded.
I live in a hotel and could make the claim I intend to occupy, but thought it not worth the hassle or risk and if someone looks real hard they may find I have been selling 3 a month and still disregard.
That is why I pay the $110.
[addsig]
Good advice, Stockpro. Trying to "cheat" the insurance process can bite you...
[addsig]
Thanks all for the replies.
When I said expensive, the quotes I was getting were in teh $1,500 range for annual coverage. I asked my lender about going quarterly, to save some cost, but they want an annual.
I am wondering if I should stop calling the property NOO. It will only be NOO for about 1-2 months during the rehab. I will then either sell it or rent it out. In checking with the agent I have my current residence insured with, he was able to work out an agreemnt for me as long as the property will be inhabited within 90 days.
John
Many package policies give you 30 or more days on newly acquired properties of automatic coverage...