Insurance For Every Property?

Question

Greetings from Maryland!  We have yet to feel any of the effects of Dorian...for now.  I hope you all are being safe!

A question for all those out there that have one...or 100 rental properties--do you get an insurance policy for each rental property that you own?  Being the son of an insurance man, I want to make sure I am covered!

Thanks for your advice.

Joe

Jennifer Darby · Answer

I have multiple rental properties and I’ve been trying to find a broker to cover all my properties plus do a personal, commercial umbrella as well as business insurance here. My state of residency is Alaska but my properties are in Oregon and my business is in Alaska. Any options for me?

Joe Maurer · Answer

Thanks for responding...

So I guess the question is that I have a rental property right now that is covered by insurance.  If I purchase another property, do I add that to my coverage?  For each property I purchase, I am guessing I should contact my insurance company for additional coverage?  I suppose that these expenses are considered with each property and should be entered in the rental property calculator...

Is that correct?

Jennifer Darby · Answer

Yes and I’m having a terrible time getting any follow through.  They said they are having a hard time finding quotes for our residential properties. This has been quite frustrating

Chris S. · Answer

Have you tried CoHo in Anchorage? I think they are cross state

Jennifer Darby · Answer

The issue I’m having is my primary residence is Alaska so i need someone whI writes in AK, OR and AZ as well

Dolan Jablonski · Answer

Hi I am an insurance agent and have a business partner who writes in OR and specializes in rental properties. Would you like his info?

Joe Maurer · Answer

Thanks Matt!

Matt Moylan · Answer

I, like @Jason Bott, suggest to my clients to move to 1 policy.  The threshold of moving is different for each investor, but if you're in the 10+ property portfolio size, it's at least something to consider.

Joe Maurer · Answer

Hai:

I feel the same about sleeping at night!  Thanks for the input.  I am still new so these are some of the thoughts I am having.

Cheers!

JM

Hai Loc · Answer

@Joe Maurer

I know a guy that has about 70 SFR in the $100-150k range. His annual insurance to cover the structure is in the $60k range. It’s not in a flood plain and historically no hurricanes and earth quakes. He just paid a flat liability umbrella insurance and just contributes a lot per month as a reserve. He is basically taking a chance if the 1 house burns down every 2 years basically.

I myself probably contributed $50k+ in insurance in my lifetime of investing and never made a claim but no way I can sleep at night not having it.

Insurance For Every Property?

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