Insurance for cap x expenses

[Dan Gongora]

Hi BP community! I'm scheduled to close on my second 2-unit property but I know that some time in the future there are repairs/updates that I will have to make. For example: -The parking lot/driveway needs to be resurfaced -Water heater will need to be replaced -Pluming is currently galvanized which from what I understand will need to be replaced with copper -roof, etc Is there an insurance policy that I can get that will cover me for those maintenance/repair expenses that I foresee ? or is the only solution paying for those expenses out of pocket. I'm mostly concerned with resurfacing the lot and replacing my current plumbing to copper in the future Thanks!

[Michael Le]

I'm pretty certain there is no such insurance but your CapEx reserves are, in a way, serving in the same manner. You analyze all your major items, determine their usable life, their cost of replacement, and based on that you put aside some money each month to replace them. Even if there were such an insurance the insurance companies would likely do something similar because they're not in the business of losing money.