Investor · Los Angeles, CA · Member since 2014 · 285 posts · 142 votes
I've been househacking for about 2 years, and have recently rented out all the units of my property in L.A. Since I won't be at the property any longer and plan to get a few more units in the next couple of months, I've been looking into getting an umbrella policy for some extra peace of mind.
I contacted my insurance broker who said that since I don't have a primary residence any longer, the umbrella policy I'd need to buy would be "renter's insurance," which like a regular umbrella, can provide $1m in personal liability protection.
I'm not sure my broker is laying out all my options. Is it true that I cannot buy an umbrella policy if I'm renting, but own a property that I'm renting out completely? I also heard that there's such thing as Landlord's Insurance. From the perspective of a landlord, what is the difference between an umbrella policy, renter's insurance, and landlord insurance?
Umbrella is an excess policy. Renters and landlord are primary policies.
A primary policy will usually cover $300-1,000k per liability occupancy. Excess will go over that.
Umbrella insurance as a term is so misused on this site.
If you are personally renting you need renters insurance to cover your butt from lawsuit.
Umbrella is an excess policy. Renters and landlord are primary policies.
A primary policy will usually cover $300-1,000k per liability occupancy. Excess will go over that.
Umbrella insurance as a term is so misused on this site.
If you are personally renting you need renters insurance to cover your butt from lawsuit.
Insurance can be confusing. What you need is insurance specifically for a rental property. This would be what I assume your insurance company is referring to as "renters insurance". It has nothing to do with the renters it is insurance on a rental property.
Tenants on the other hand require insurance to protect their personal property. That would be "renters insurance". The landlords insurance does not cover the tenants personal property.
Either the terminology in your state is different or your agent is not knowledgeable in rental properties.
I suggest you contact a insurance broker rather that a specific insurance company and let the broker shop the market.
@Greg Thank you for your insights. I agree that I should contact a broker to shop the market. My only hesitation is that I'm getting a multiple policy discount; otherwise I would have ditched this broker long ago.
@Derek Lacy Thank you. I have a homeowner's policy that I'm paying around $1800 a year; this fee is impounded with my mortgage payment along with property taxes. Since there are two buildings on the property, I have a separate policy for each of the buildings. Since I moved out of the unit I fixed up, and I'm no longer occupying any of the units, the insurance broker said I have to make a change to the policy to reflect the fact that I'm no longer living in any of the units. I end up paying slightly less after the change. Is this revised policy a "landlord policy"?
For the Umbrella, I'm being quoted the following below: Is this reasonable, given that I own my own car, and I have a 3 unit building, all of which are rented out? I intend to rent until I find another property. Once I get that property, my umbrella insurance would go up?