Is my insurance sufficient?

Question

I am purchasing a 12 unit building in about a week and wanted to make sure I am making a good choice with my insurance policy. Coverage seems adequate with this policy but I am struggling to fully understand all the different coverages. For example my policy states a $2M coverage for liability and medical expenses but further down states medical coverage at $5k per person. All just seems vague and contradictory. I attached the first page of my quote to show what I am referring to. There are additional pages of the quote but I’m struggling to get my computer to cooperate and don’t want to publicly post personal info. Any other thoughts on the policy are welcome.

-Keith

Keith Myers · Answer

Thanks Bjorn,

I will look into how much more it will cost to increase the loss of income time period. Here is the page that has the structure listed. The policy is for replacement cost as I understand it and includes wind and hail damage. The structure itself is over 100 years old and made from as much as 5 layers of brick on the outside perimeter. They don’t make them like that anymore. If it were to be flattened I can’t imagine rebuilding in that same fashion. The building itself is worth less than $1M but the coverage is for $1.3M. In this scenario, I would have up to my policy limit to rebuild a similar structure?

Bjorn Ahlblad · Answer

@Keith Myers what you have shown there is fine..........where is the coverage for the actual building; say it gets flattened or burned. 12 months loss of income is not really sufficient; should be 24 mos. settlements take a long time.

Keith Myers · Answer

Thanks Jason, that makes sense. If I am understanding you correctly then I would still be covered if someone gets hurt on the property and makes a claim for up to my $2M coverage.

Jason Bott · Answer

@Keith Myers Medical Payments is a coverage that gives you the ability to approve small payouts from your policy for personal injuries to other parties.  They can be tenants or others on your property.

In order for the General Liability to pay out, the other parties need to bring a claim against you.  This usually results in the claim reps getting involved and the insurance carrier incurring a good amount of cost to discover if the claim is legitimate or not.

Medical payments is meant for a low cost way to handle small claims.

Hope that helps.