Investor · Columbia, SC · Member since 2018 · 5 posts · 1 vote
Good morning my BP family!!
I will be closing on my first property which is one side of duplex (YAY!!). My question is in regards to the landlord insurance policy I need to get.
Does anyone have any recommendations as far as insurance companies to reach out to? The property will be located in Greenville SC.
I reached out to MetLife and AAA and received some quotes but wondering if anyone else had any opinions on it.
It is a duplex of which I would be purchasing 1 side. it is a 2/1.5 and is slightly over 1k sq ft. The HOA takes care of all external issues so I would just be insuring the studs and in. Thank you in advance.
We've always just gone with State Farm since we have our personal policies through them.
Most insurance companies should offer a Rental Dwelling policy which only covers the structure and not personal possessions, so it's important to be clear in your lease that it's the tenant's responsibility to purchase rental insurance since your insurance will not cover their personal items.
Another consideration is their pet policy if you plan on allowing pets. Some companies don't allow certain breeds of dogs in the property.
Bottom line is I would recommend just going with a company you're familiar with and that you trust.
We've always just gone with State Farm since we have our personal policies through them.
Most insurance companies should offer a Rental Dwelling policy which only covers the structure and not personal possessions, so it's important to be clear in your lease that it's the tenant's responsibility to purchase rental insurance since your insurance will not cover their personal items.
Another consideration is their pet policy if you plan on allowing pets. Some companies don't allow certain breeds of dogs in the property.
Bottom line is I would recommend just going with a company you're familiar with and that you trust.
I’d agree with @Amanda Erstfeld pick a company who you’re comfortable with. As long as you’re not choosing the bottom of the barrel, you should be fine. Be sure to read the policy though. They are dry, but it’s important to know what’s covered and what might not be.
After you have a few properties under your belt, it might them be time to look at alternatives and companies that can service a portfolio.
It sounds like it is a Condo unit despite being part of a 2 family. I would check with your agent to see if this should be insured as a rental condo unit. They may use a Dwelling/Fire Form or a Condo Unit Owners form (HO-6 form in the industry jargon).
The problem/challenge you face is determining what parts of the building elements you own and how much to insured them for. Things like siding and roofing are probably the Association's but what about common walls, pipes and electrical that service both units, etc.
@Mike McCarthy Yessir, since its my first, I def dont want to go cut rate and try to save a couple pennies. I was thinking about using Statefarm because they hold my home and auto, but AAA is really stepping up their game on this one so I think thats the plan.
@Dennis M. The policy I'm looking at is 300k personal liability with $5k medical payments. Deductible is $500. Do you think thats sufficient coverage? Some other companies quoted me higher rates with only 100k personal liability.
@John Mocker I asked for a policy that covers studs in as that is what the person at the HoA management company said. It sucks that this unit has an HoA but its also nice that I dont have to worry about the roof/siding and lawncare.
@Mike McCarthy Yessir, since its my first, I def dont want to go cut rate and try to save a couple pennies. I was thinking about using Statefarm because they hold my home and auto, but AAA is really stepping up their game on this one so I think thats the plan.
@Dennis M. The policy I'm looking at is 300k personal liability with $5k medical payments. Deductible is $500. Do you think thats sufficient coverage? Some other companies quoted me higher rates with only 100k personal liability.
@John Mocker I asked for a policy that covers studs in as that is what the person at the HoA management company said. It sucks that this unit has an HoA but its also nice that I dont have to worry about the roof/siding and lawncare.
I like 100k for each unit . A triplex has theee times the people and potentially three times the risk so I do 300k on those
Regarding the Liability coverage. I rarely recommend less than $500,000. The cost to go from $300,000 to $500,000 is rarely a large cost. If they offer $1,000,000 limits I would price it also. Often you can offset the additional cost of the higher liability with a $1,000 deductible.
If you have an umbrella policy with State Farm see if it will cover over the policy on this unit. If so, then the $300,000 limit may make sense.
I had great luck with @Jason Bott for my 8-plex and got coverage through Berkshire. I had checked into State Farm because they are my personal insurance company and they were really high. However, I'm buying a flip right now and State Farm was the better option on that one. Others would only cover what cash I personally had into it at the time and State Farm would cover full replacement. Both companies had the same monthly rate.