USAA Homeowners insurance and lease terms.

1 Reply

recently purchased a 4plex in HB, Ca.

We are on state farm insurance and everything is fine, decided to shop around and noticed that USAA is lower with similar level/amounts.

USAA however required that all tenants i forget the exact phrasing but something like "tenants for at least 6months"

Now i said that my tenants have been there for over 10 years, and are technically on month to month now. I did make 3/4 sign a new lease for 12 month terms, but the 4th I did not make them sign yet.

USAA said they have to be on AT Least a 6month lease.

I said that they were previously on 12 month leases but are now month to month.

Can u guys comment?

Does anyone have USAA insurance for 4plex?

Do you guys make everyone re-sign their leases at 12 months and make it another 12 months?

or is this insurance salesperson mistaken?

He says u dont actually show the lease its just a good faith/honest thing.

I'm not entirely sure what your question is, but maybe my response is relevant. 

If i understand the situation correctly, the "salesperson" you are talking to is telling you that they don't actually check leases, but they want the tenants to be tenants for atleast 6 months? It sounds like they have been there 6 months, so just tell them that they have.

In terms of getting the best price on your insurance, I would always recommend you get in touch with an insurance broker. If you have a good one, they will get you the best deal, with the least amount of work. I have a great lady, I give her basic info about the property, she gives me ~3 options with the price and coverage I am looking for (and am required to have) and I fill out one application, she takes care of the rest.

YMMV