BiggerPockets

I have quite a few homes owned by an LLc and insured with Farmers. I just finished building 6 new homes to keep as rentals. I'm in them 90K with lot and Farmers is telling me I need 178K in insurance!! These are free and clear and I could re-build the entire home for 80K!!.
So, I went looking for another quote and I'm having trouble. Many are saying they won't do the policy for an LLC. Some want a credit report and financial statement. They're also telling me that the farmers policies are ILLEGAL and won't pay off because they are in my Wifes' name and list LLC as an additional insured. I'd love to know those with LLCS, what insurance company are you using. These properties are in So. Texas. Thanks for any suggestions. Rich.

Try Foremost or Safeco.

Try City Security.

Rich,
Just saw this. Don't know how I missed it. I was a Farmers adjuster for 2 years. That being said, Texas is it's own animal when it comes to insurance. Did you ever tell them the ARV was 178k?

Foremost is a Farmers subsidiary - however they are on a totally different system of underwriting.

I wouldn't say that the policies are illegal unless you misrepresented anything to the agent when you got the policy. Don't get too wrapped up about an agent calling your policy Illegal. The 3 week correspondence course to become a licensed agent does not exactly make them legal experts on the topic. I've had to explain to more than one agent the coverage (or lack thereof) of the policy they sold to a client.

Shoot me a pm or a phone call Rich. I'll do what I can to help.

Tim

Good deal Rich. Yeah, in my experience Foremost is definitely an investor's friend. The bonus is the Foremost claims process has been improved by Farmers so you get Foremost underwriting with Farmers claims service. Wow, that sounded like a commercial....lol

Jon,

I'd be interested in your brokers name.

I've run into the same issues where the agent plugs data into their system and it spits out the number that the policy needs to be written for.

In most instances, that number seems to be pretty inflated. To me it looks like their software automatically inflates the number just to keep deductibles high. Seems like a racket to me.

I was with Farmers for a few years, switched to an independent broker who was able to destroy Farmers Fire policy rates. Farmers was not even in the ballpark on Fire policies.

Kevin

Rich, I don't know if you ever found a better insurance solution for these properties, but I do have a TX broker who is flexible and creative.

I do as well. Sorry I missed this thread Rich, I could have answered it for you months ago.
At any rate, try Arch Insurance Services (Tim Arch). He is my broker for my TX properties and has proven to be very valuable. Many different options are available through him.
Email me if you want his number. I am not sure I can post it in the forums.