Investor · Millburn, NJ · Member since 2018 · 141 posts · 100 votes
Hi all,
this question may be a little odd, but would appreciate everyone's input.
Is there a downside of having all your rental properties under one insurance company? We are not familiar in this area when it comes to property insurance. Let's say if for some reason, your tenants sue you, would the premium on all of your properties go up? is it possible?
Rental Property Investor · Allentown PA · Member since 2021 · 159 posts · 36 votes
5y
I am covered with Allstate and each is its individual policy w/ individual coverage limits etc. So if I were sued it wouldn't affect the others. I also have an umbrella policy which is highly recommended.
Rental Property Investor · Broomfield CO and Estes Park, CO · Member since 2017 · 52 posts · 45 votes
5y
Anything is possible. Insurance companies have a wide variety of rules and guidelines. If they are all on a single policy, likely they would all have some impact. If they are on separate individual policies and are owned by separate entities like LLCs, maybe not. If they are all on separate policies but owned by the same person or same LLC, maybe yes. Talk to a local independent insurance agent to learn more about how it is handled by the companies that are in your area.
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
5y
Joanne, There could be several downsides, but as long as you and your agent are managing the program, they can be avoided.
A common issue many new investors run into is that they assume because their company was the most competitive on singles and duplexes, that company will be competitive on ALL of their properties. Most times the companies that have the best options for singles will not have the best options for buildings with 4 or more units.
Many of my investors who have a portfolio with different property types will have more than 1 insurance carrier to get them the best coverage and pricing.