What Insurance to use?

Question

Hey guys,

I’ve been using Allstate for my rental property insurance, but they have a limit of five rental properties. I’m adding two more properties to my portfolio, and I’m also not particularly happy with their pricing.

For those of you who own multiple rental properties, what insurance companies or brokers are you using?

A few questions:

• Do you recommend switching to a company that specializes in landlord insurance?
• Are there insurance providers that offer better rates for investors with multiple properties?
• Is it worth getting a portfolio policy that covers all properties under one policy?
• Does having the properties owned by an LLC affect which insurance companies you use or how you structure your coverage?I’d appreciate hearing about your experiences, recommendations, and any companies you’ve had good luck with. Thanks!

Do you recommend switching to a company that specializes in landlord insurance?

Are there insurance providers that offer better rates for investors with multiple properties?

Is it worth getting a portfolio policy that covers all properties under one policy?

Does having the properties owned by an LLC affect which insurance companies you use or how you structure your coverage?

I’d appreciate hearing about your experiences, recommendations, and any companies you’ve had good luck with. Thanks!

Owen Rosen · Answer

I'd also be careful as a lot of Allstate policies are written with substandard coverage, actual cash value, no ordinance or law, etc. Usually the policyholder is unaware from my experience.

Jonatas Melo · Answer

Yes I saw that. Need to make sure I have the correct policies

Ashish Acharya · Answer

Jonatas, once you get beyond a handful of properties, I’d definitely look at a broker who works specifically with real estate investors rather than just shopping each policy individually.

I’d compare more than the premium, coverage limits, deductibles, liability coverage, loss-of-rent coverage, and how they handle multiple properties or LLCs can make a big difference.

On the bookkeeping side, I’d also keep the insurance costs tracked by property and entity. It makes it much easier to see the true cost of each rental and keeps things cleaner at tax time.

Hope you find a good fit as you add the next two properties.

Leo Stein · Answer

Short version from the PM side: yes, use an independent broker who writes landlord policies, not a captive agent. They can shop several carriers at once, which is how you get past a five property cap. Ask for a dwelling fire DP-3 style policy with liability and loss of rent included. Blanket portfolio policies can be cheaper, but one big claim can hit the shared limits, so compare against separate policies. With an LLC, tell the broker up front so the LLC is the named insured, and add an umbrella policy on top.

Jeremy White · Answer

Many landlords who grow past a handful of properties end up on a landlord package policy or a commercial portfolio policy, and an independent agent can quote several carriers at once, which saves a lot of calling around. When you compare quotes, line up the same liability limit, loss of rent coverage and water damage terms on each one, because the cheapest number often comes with weaker terms. It also helps to ask whether the policy is written per property or as a blanket, since that changes how a claim on one unit affects the rest.

Clever Mukori · Answer

Jonatas, one thing I'd ask about on every quote is the vacancy clause. Many landlord policies cut back or exclude some coverage once a property has sat empty past a set number of days, and that's exactly when a turnover or a rehab on a new purchase can stretch out. I'd also keep a simple list of each property's carrier, policy number, renewal date and deductible, since with seven policies the renewals start sneaking up on you. And if your leases require renters insurance, ask tenants to list you as an interested party so you get notified if their policy lapses.

Jonatas Melo · Answer

Yes makes sense. Thank you

Jonatas Melo · Answer

Thank you!

Randy Schell · Answer

Jonatas, one thing I'd have handy before shopping around is the age of the roof, electrical and plumbing on each property, since insurers are getting pretty strict about those lately. An independent broker can ask several companies for quotes at once, which saves you a lot of phone calls....

Randy, Bunklow

Jonatas Melo · Answer

Thank you Randy. Just had to answer about a roof in one of the new properties. Apparently it is missing some shingles.

What Insurance to use?

What Insurance to use?

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