BiggerPockets

I was just wondering, what type of insurance you guys carry on your rental properties. I'm pretty sure i have a regular homeowners policy on average for the 4 properties i own i pay about 1200 each a year for insurance. Also would you guys suggest escrowing taxes and ins into mortgage pymnt,or paying them seperate.

definately agree with Jon here.

Jon, not to hijack this, but along the same lines as his tax question, i have seen several properties sold at these tax auctions even though the bank is listed as a lienholder (interested party).

Could this be one reason this is so, considering the vast majority of bank failures this year?
I know it is oficially the landlords (property owners) responsibility to make sure these taxes are paid (even if it included in the mortgage pmt).
You would suggest to pay the extra for the priviledge of paying the taxes yourself for your own piece of mind?

It that typically very much?

Originally posted by jawsette

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It that typically very much?

Usually if you decide to not escrow taxes and insurance, you will have a higher interest rate by 1/8 to 1/4 of a percent. So instead of 6%, you might end up with 6.25%.

I always tell my clients the same thing.

First, ask your agent if you are covered if you have a tenant in the property. It sounds like you actually have a landlord policy. I would find it hard to believe you have four homeowners policies with the same company. That would be hard to get through underwriting for sure. They may be calling them homeowners policies when in fact they are some form of a landlord or what they call a dwelling or fire policy.

Secondly, how horrible would you feel if you paid the insurance company $4800 a year for lets say four years which is almost $20,000 in premium only to have them deny a claim when you really need them due to misrepresentation. That could be a tough pill to swallow.