Insurance company does not allow gas grilling in balcony/patios
My buildings are 3-leveled, all the walls surrounding each unit, the floor and ceilings are all concrete so should fire happens, it would be contained in the unit where it starts. First and second level have brick exterior and third level has siding outside the concrete wall. It is nice and convenient for tenants to keep and use their grill in the balcony. Not many other apartments in this area have a balcony.
The insurance company asked me not to allow grilling in the balcony and gave me a few months to correct this. I have to admit I was not eager to do this. Everything else (such as fill a few depressed areas in the parking lot, seal cracks on 3 stepping concrete slabs) etc. could be done and will be done soon, but I am hesitant about asking tenants to remove their grills from the balconies.
Please advise on what I should do? Should I ask tenants to provide proof of rental insurance? Thanks!
P/S: this insurance company is not going to renew my policy when it expires in March. I will need to find a different insurance company.
Almost every insurance carrier prohibits allowing grilling on a balcony. If you end up having a fire, do you really want the insurance company to deny your claim because you allowed residents to grill there? I'd remove the grills. It is always a good idea to have your residents get renters insurance. That way if they cause a major loss, you can recover the deductible from their insurance company.
FWIW, one of my properties also is constructed with concrete balconies. The prior owner let them grill, but our insurance company required the grills be removed, and we did.
Thanks for sharing and for your advice, Greg! Great point about renter's insurance paying for my deductible in case of a fire!
I might lose some tenants over this. My PM who also manages hundreds other properties in the area said that other property owners were never asked to have their tenants remove gas grills from their balconies/patios.
I will try to convince the insurance company to change their mind and renew the policy for my property. In case they do not, could you please recommend other insurance companies?
Quote from @Huong T Nguyen:Have your PM get the names of insurance companies that other property owners are using in the area. That being said, if your insurance company requests the grills be removed, you need to get them removed ASAP. Tenant insurance is not sufficient if there was a fire and your carrier could deny your claim if you fail to comply. Fires from grills and fire pits are very common. They could be enforcing a general policy that doesn't take into account cement versus wood decks.
Thanks for sharing and for your advice, Greg! Great point about renter's insurance paying for my deductible in case of a fire!
I might lose some tenants over this. My PM who also manages hundreds other properties in the area said that other property owners were never asked to have their tenants remove gas grills from their balconies/patios.
Thank you, Joe. I will probably have to give tenants some credit for each gas grill to be removed from the balconies that they could apply to the last month of the year then.
What about electric grills? Does anyone know if electric grills are a better, safe alternative to gas grills?
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Originally posted by @Huong T Nguyen:Thanks for sharing and for your advice, Greg! Great point about renter's insurance paying for my deductible in case of a fire!
I might lose some tenants over this. My PM who also manages hundreds other properties in the area said that other property owners were never asked to have their tenants remove gas grills from their balconies/patios.
Huong, this is a common request by most insurance carrier. If I asked all of my insurance carriers if they want the grills on the deck, no one would say they allow it.
You do not want to get a cancellation by your current carrier as many insurance companies can not quote your account if you were cancelled. By limiting the # of carriers, you premium will most likely be higher with whomever you move to.
I suggest either removing all of the grills now or try and change insurance carriers before your renewal. Ideally in the next 30 days.
@Huong T Nguyen unfortunately this is true across the board with all carriers due to the risk exposure. Generally if you ask the tenant to remove it and send you a picture showing it's removed the insurance company can reinstate the non renewal. I had the same situation as I have a three stories building apartment in Chicago. The tenant removed it no problem, I guess they are easy going but ultimately it's your property, you set the rule. Is there a common area/background perhaps you can recommend the tenant to move the grill to? Another option perhaps is putting an electric grill instead if that insurance company is ok with electric.
@Huong T Nguyen it depends on the carrier. Many carriers won’t allow any grills of any kind on balconies, but there are carriers out there who don’t have any major issues with grills as long as they’re gas or electric grills. Most of the carriers I’ve dealt with or encountered certainly won’t allow charcoal or wood burning grills. However, there are carriers who are okay with gas / electric grilling on balconies. Some carriers/underwriters don’t ask many questions while others ask about the height of the balcony ceiling, building materials used in the balcony area, sprinklers on the balconies, etc. If there are several tenants you’re dealing with who like their grills and may actually move if you push this on them, then I’d suggest finding a carrier who would quote your dwellings despite the grill exposures.