Type Of Insurance
I've had read many post on how to get insurance, but wanted to get experienced landlords opinions on the type of insurance to cover rentals. I have 4 rentals now with 3 different companies (I have issues being so close to water). 2 polices are replacement cost 2 are a upgraded fire policy - flat payout to cover the my loan/current market value. As a landlord should you get replacement cost at a higher price (normally) or a flat rate policy. Thanks in advance for advice.
This article should help give you some "overall" perspective:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=438
Combining properties on a master or "blanket" policy can give you a better rate as well as provide a deductible per occurence (versus per property) in a catastrophe, like a tornado. I would evaluate your position in each property to determine what form you need [(Replacement, aka "reconstruction" or ACV (actual cash value)]. You usaually can apply either per property. I hope this helps.
Tim
Thanks for the info. However, I understand the difference in insurance. I was just curious as to what most landlords use - ACV or replacement valus policy - as a general rule.
Depends upon the property. If I have a condo with a master insurance policy, then I just get a minimum landlord policy with fixed coverage limits.
Otherwise, I get replacement cost coverage for my properties.
Thanks Dave. I agree i would like to have the best coverage. Right now I have 3 duplexes and a 4-plex. Was able to get a great price for the 4-plex with replacement cost, however the duplexs run a lot more (with replacement cost) so I have ACV for them. Trying to work the cashflow numbers while keeping my properties properly covered. The ACV is a good package with lots of extras - 1M in liability, lost rent etc. Anyone else want to comment?