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? :-?
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
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
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?
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