3 insurance policies?

Question

We have an LLC and have a commercial liability policy with fire and dwelling, as well as the umbrella policy that extends liability limits beyond the original policy. Do we also need "Landlord" Insurance? Or is that for people that do rentals in their own name and do not have an LLC structure?

Please any advice would be great!

Bev Willerby · Answer

Hi
                    In Australia, we have a "Landlord Insurance" policy that costs approx. $250 p.a. with approx. $200 excess per claim, and covers the Landlord against Malicious Damage & Rent Default.
                    (A totally seperate policy to the building insurance)
                    
                    Malicious Damage caused by the tenant requires a police report.   It is very hard to establish at tribunal that the damage was done intentionally with malice and not just out of stupidity:
          
          case example;
          tenant brought motorbike into living room to change oil and severly damaged/stained carpet - judge ruled tenant had not set out intentionally to cause damage to the carpet -so this was not covered
          
          on the other hand, tenant caused offensive graffitti to internal walls -this was ruled to have been done intentionally with malice -so covered          
          
                    However, this policy comes into its own mainly for rent default, of varrying amounts depending on the circumstances but in some cases upto 12weeks if the tenant does a runner.
                    
                    You can see the peace of mind $250 can give you.
                    
                    Is there anything like this available in USA?

Larry T. · Answer

Thanks so much for the information, I will set a meeting with our agent and see what they say. I was kind of concerned that they would consider that an opportunity to sell me yet another policy but I am probably just paranoid. I also would rather have my insurance situation straight and as good as it can be than any other aspect of this business. Peace of mind is a high priority...wait does such a thing exist in the world of tenants?:)

Eddie Ziv · Answer

As suggested, check with your agent, On my insurance policies I have myself as the insured and my LLC as an additional insured party, so if someone file a claim (suit) against me or my LLC, we are both covered.

Michael Rossi · Answer

LT,

It's not a dumb question.  Insurance is confusing.

I have all my insurance under one policy.  My landlord policy covers liability, lost rents, fire, etc.  I do not have an umbrella policy and umbrella policies will normally only cover a few rentals.

Bill Gulley · Answer

Hey, if you tell your agent that peace of mind is important, open your checkbook and be prepared to buy all kinds of policies! LOL

See what they say, don't buy at that appointment, just btell tyhem you want you coverage coordinated for the exposure. You should end up something like Mike's arrangement, a separate policy for each property and an umbrella liability policy. When you get to about a million in dwelling coverages, then you might get into a blanket policy. Ask you aget, alot of this will be determined by your area and fire protection class code, how properties are ranked in an area. Good luck, Bill

Bill Gulley · Answer

Hi, no, good question, ask your agent under the general liability policy. Your blanket fire policy should have a liability element which would be the first, then your general liability policy kicks in. These will only come into play in the event you are sued, to defend you up to your limits of liability. If you really messed up and you don't have much of a case, insurance companies can and do, throw in the towel and just pay the remaining limits and walk away, so make sure you have limits high enough to cover any exposure. You should have your policies with one company to avoid two or more companies from bickering about any loss. It's a reall pain, and you can lose coverages you think you have if you acquire duplicate coverages for an insurable risk. Check with you agent/broker. Good luck, Bill

Larry T. · Answer

I am sorry if this is an obvious answer question...it is not obvious to me though:)...if anyone knows a place on the site where it is answered I would try to go there. I searched insurance and llc and other terms and still am not sure.

I had not heard of landlord insurance until this year.