Landlord insurance
We live on the coast in South Carolina and have just rented our secondary home... When we notified Allstate Ins. that we wanted to convert our homeowners ins. into landlord ins. They told us that it couldnt be done and we would have to locate insurance elsewhere. This was a shock to us and really put us in a bad situation., as we live in a storm prone area and it is very difficult and expensive to find and buy a new policy..
Has anyone ever run into a problem like this?? If so what was your solution
Thanks for any ideas...[list][/list:u][list][/list:u]
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
Yes, now you are in Business, and need to look for commercial lines. Any good multi-line Broker should be able to locate a carrier that will take on your property, although some are pretty picky. Even State Farm now is non-renewing policies on all multi-family properties here in Honolulu. While you are at it, if you don't already have a five million umbrella, you should...
Welcome to being a business owner with a rental. The insurance you need and the risks you have are not well covered by a homeowner policy. Allstate is really doing you a favor by making it clear that you need to shop around for a company that knows how to cover your risks.
I am not saying Allstate is bad or that they will not provide rental coverage in many markets. Just that too many people see a second home that is rented as a home so they fail to cover it correctly.
I know of specific situations where someone has a home, they moved out (job relocation or similar) and then rented the place. They made no change in the coverage. In one case the guy was flying back from his new state where he worked as the tenant had moved out the prior week. While in the air the home burned to the ground. The insurance company denied the claim as it was a homeowner policy. With no house left the mortgage company foreclosed and the guy lost everything he had in the property. AZ story.
Originally posted by "faldr1":
We live on the coast in South Carolina and have just rented our secondary home... When we notified Allstate Ins. that we wanted to convert our homeowners ins. into landlord ins. They told us that it couldnt be done and we would have to locate insurance elsewhere. This was a shock to us and really put us in a bad situation., as we live in a storm prone area and it is very difficult and expensive to find and buy a new policy..Has anyone ever run into a problem like this?? If so what was your solution
Thanks for any ideas...[list][/list:u][list][/list:u]
