Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 months ago on . Most recent reply

User Stats

10
Posts
2
Votes
Stan Koper
2
Votes |
10
Posts

Insuring beach home

Stan Koper
Posted

I'm in the final stages of purchasing a beach home that I will be using as a short term rental. On review of insurance I'm terrified of being under insured and could use some advise on what I should be doing. The quotes I'm getting seem to imply my coverage is far less than what I'm purchasing the home for.

Most Popular Reply

User Stats

904
Posts
718
Votes
Patrick Roberts
#2 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Charleston, SC
718
Votes |
904
Posts
Patrick Roberts
#2 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Charleston, SC
Replied

Find out whether the quote is actual cash value (ACV) or replacement cost estimate (RCE). A lot of insurers are offering ACV as a way to keep premiums down in high cost areas. The tradeoff is that ACV brings depreciation into the value - so if a roof has to be replaced and costs $30k, but it's ACV was only $5k at the time of loss, then insurance is only paying $5k. Make sure you have coverage for hurricanes/wind and hail. If you have a lender on the purchase, I'd be shocked if they allow you to proceed with insufficient insurance. We dig into the quote to make sure the collateral is sufficiently protected.

  • Patrick Roberts
business profile image
Patrick Roberts - MLO - Assurance Financial
5.0 stars
10 Reviews

Loading replies...