new landlord policy - need advice on whether lower liability

6 Replies

hi

we just bought a property in South Philly with tenants already there.  The house is in a pretty bad condition, so we bought as is.  We'll be flipping when they move out.  But the main problems do seem to be easily fixable.  Meantime, this is what my agent suggested for policy, it comes out to almost $100 /mo, so I am doubtful:

dwelling 150,000 liability with 2500 deductible

premises 350,000 liability 

500 med. included

there's a pre 1930 built surcharge

rawhouse charge

premium comes to $1,107  - does it sound too much or about right?  

Originally posted by @Thomas S. :

Your liability is too low. You should have a minimum 1M liability coverage 2M would be better.

 Why?  I never get more than 300,000.  oh, I have an additional umbrella policy, forgot to mention. ty for reminding.  i am thinking it's too high maybe.

Insurance costs are very regional, but that seems high.  Ours range from $40 to $60/month.  Ask about umbrella policy options.  Shop other agencies.  Hopefully soemone else will chime in with levels they insurance at, my records are packed away currently.

@Tania Strobinski quick question for you I’m assuming it’s in your personal name but I thought I would ask is this house owned personally or by an LLC ? -as that could make a difference in the amount of Insurance you should carry.
-It’s hard to say that a certain dollar figure is adequate without knowing what your policy has for coverage as well as any key exclusions. I’ve found that I learn more about my policies but looking at what’s not covered.
- for example you could get a bad million dollar policy that’s comparable to a well written $500,000 policy depending on specific types of coverage offered or excluded
- Best advice is to find an agent that you can trust, they should be looking out for your best interests hopefully a million dollar policy without any coverage gaps and maybe an umbrella depending on your personal exposure/net worth etc

I would say there is no such thing as too much liability. The whole idea is to be protected against large claims, not minor events. You never know where a lawsuit could end up once attorneys are involved.