Rental Property Insurance Nightmare

Comments(8)

• 
  johnstejer5th February, 2004

  I hear ya! Mine also went up. My insurance lady said 9/11, huricane Andrew and recent fires in California are mostly to blame. Seems everywhere is a hazzard. Here, it's earthquakes, on the east coast it's hurricanes. Also if your places are older than 1952 the price goes up no matter what shape the building is in. The rates are supposed to stabilize now, so I'm told. I hope so. I have only two companies that will work with me. <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by johnstejer on Date 02/05/2004 ]

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  Lufos5th February, 2004

  Please remember that here in Calif we have the California Fair Plan Insurance Program. When the rest of the world will not write, they will. Not too expensive, coverage is somewhat limited but I use it throughout the hillside area where the word "brush Fire" terrifies all the lenders. The answer of cours is to clear your land once a year. I used to have a goat but he ate too much and we lost money on the reduced acerage.
  
  Tah Lucius

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  ELOCK5th February, 2004

  i just carry fire and liability on my props. with a vandal clause and my rates actually droped $10.00.
  
  I use state farm.
  
  
  ED

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  norrist5th February, 2004

  Telemon,
  
  I PM'd you, but consider carrying higher deductibles, and if you haven't already, combine the locations on a master or "blanket" policy.
  
  Tim

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  sunnyb7511th February, 2004

  We use Farm Bureau insurance of NC. we have a blanket policy and added our 4 rental condos to it and our own SFH. We are just getting ready to open another policy for a SFH we are looking into.

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  wstone123rd February, 2004

  Telemon,
  
  I'm a newbie to investing, but a veteran at the insurance (what I do until I can do what I want). The majority of all costs in homeowners/rental insurance is related to the building coverage. Make sure your properties are valued correctly for structure only. Land value should not be considered in the equation. Increase your deductibles to a level you can afford. This is the best way to reduce your costs. In VA going to a 1000 deductible from a 250 can reduce your costs by 25%. Third thing I would do is reduce your liability coverage to the minimum limits and then obtain either a Personal Liability Umbrella Policy (PLUP). The usual minimum covg is $1 mil and extends excess liability coverage to your rental properties. There is usually a limit on the maximum number of properties on which you get coverage. If you own more than the maximum number of rental properties obtain a Commercial Liability Umbrella Policy (CLUP).

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  loanwizard23rd February, 2004

  I carry mine through Ohio mutual. aka united ohio i believe. See if you can find an independent agent who writes for them.
  
  Good Luck,
  Shawn(OH)

• 
  norrist28th February, 2004

  I'd advise against tying your personal liability (via your homeowners policy) to your rentals. We do our best to protect our personal assets with Land trusts, LLCs, etc..., so it is somewhat contradictory to use your personal liability for your rental exposure...just my 2 cents...