What coverage categories should be included in my multifamily?

Question

Hi and thanks for reading.

I've inherited property in Park Slope, Brooklyn via a trust. Unfortunately, the person who left it to me had Alzheimer's and the property insurance lapsed. I have an application for new insurance, but I don't know what best practice is for covering a multifamily brownstone in Brooklyn. I would really appreciate it if anyone who knows much about insurance or managing a property would cast their eyes over the screenshots below and let me know:

1. Does that provide the general level of cover I would need for a mutlifamily? Am I missing anything? Am I over-covered for anything?

2. What additional questions would you ask of the broker? Do you have clarifying questions that you wish you had learned to ask years ago?

Again, many thanks for your time!!

Mohammed Rahman · Answer

Hey @Hannah Stern - this isn't an uncommon situation, depending on how well versed you are on the property it may be wise to order your own inspection to pickup on any faults that could affect the underlying policy.

Better to be aware of it beforehand before being blindsided should you file a claim.

Additionally, you may want to ask your insurance broker about rental income coverage as a landlord which could kick in if you have a non-paying tenant.

If you'd like I can put you in touch with a couple of my clients that have purchased brownstones with me and can provide their insights on this situation.

Abel Curiel · Answer

@Hannah Stern

Hello Hannah,

Great questions. I'm sure insurance specialists on BP will chime in with helpful information.

I'd recommend seeking another opinion from an insurance agent who can list and explain coverage options.

This will allow you to compare policies, although, from my experience, most companies offer very similar coverage.

As for your 2nd question, 2 things I wish I had learned early on:- Explain the benefits of renter's insurance to all tenants and prospective tenants. Encourage them to obtain renter's insurance.- Insurance companies do not typically cover termite damage unless the damage is so severe that it causes a floor/ceiling to collapse. Before any major renovations, conduct a home inspection and termite inspection if needed.

All the best!

Abel