Hi everyone I am trying to formulate my plan and was curious if anyone had advice on what insurance you should carry? I am looking at 2-4 multi unit homes and I would imagine you need liability but not sure of what other insurance you might need.
Thanks in advance!
@Jay HunterI would talk to your agent about your specifics, you want to know the riders you have and ect, who will do your work and rehabs. this may mean you want a workers comp policy, and an inland marine will cover your tools and equipment, you may also want to increase the amount you have on your auto insurance because after all the big investor might get sued by a big shot lawyer, if you get in a wreck, that's another discussion on asset protection, but just my .02 cents worth.
I completely agree with Jeremy. I feel that the best agent to talk with is one that represents several different insurance companies. These are called independent agents. You need to find one that has worked with real estate investors. If you find the right agent, they will get you the best coverage for a reasonable price.
Insurance companies have a love hate love relationship with real estate investors. If you have an agent that represents several different insurance companies, you will be able to quickly and easily find another company when your insurance company jacks up rates significantly or exits the rental market all together. We real estate investors have hammered insurance companies at various times in the last decade and rates and products can fluctuate greatly.
If your agent does not offer some sort of umbrella coverage, you probably have the wrong agent! Whether it is on a commercial policy or a personal policy, you can't beat the coverage for the price. Even if you have your rentals in an LLC, an umbrella policy should really be high on your list.
Best of luck to you!
Thanks Jeremy and David! Your responses gets me going in the right direction and items I haven't thought of yet!
I've used Evergreen Insurance for all my investment properties. They have a special program for fix & flips. http://goo.gl/bfXsnc. They also insure some of my buy and holds.
I deal with Sol Eisenberg and Gitty Loker. Good luck!
I am an independent insurance agent, but I work in the Southwest and mostly California. But, my advice is certainly inline with David and Jeremy. I work with multiple investors and there are quite a few companies who have appetites focused on certain aspects of the investing world: ie flippers, buy and hold, multi-family or SFR rentals...etc.
If you are thinking flipping, for my clients, I use Atain, a company with an excellent product that allows for a master policy with sub policies that can be added and changed per property bought and sold. It will provide Property coverage and Liability coverage (which should be in any policy you buy: if not you are definitely holding unnecessary risk). But, using an independent agent will give you the flexibility to examine more than one carrier, so if you are a multi-disciplined investor a different company may have a better product for the various avenues of your investing.
When it comes to contractors, unless they are under your employment directly, you should have no need to insure them. You will want proof of 2 things: their bond and their insurance. (The bond protects you if they disappear with your money, up to the amount of their bond, the limits are different in every state).
And your tools...etc if you are just a guy doing some regular handy man style work on your property, that property should be easily covered by your commercial investing property. But, once you get into more expensive tools, over $1-5,000s, you will want those specifically endorsed to ensure better protection than the baseline property.
I apologize for the length of the post, and again, I have no experience in your state, but generally insurance is pretty similar nationwide and this should at least get you moving in the right direction with a little background.
Good luck and feel free to reach out if you have any questions.
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