Rental House Insurance

4 Replies

I have purchased my 8th buy and hold rental property.  I was informed yesterday by Allstate that they will only insure five (5) rental properties.  What do I do?  I could go to numerous different insurance companies once I reach every five units but that would be a record keeping nightmare.  Is it possible to buy an umbrella policy that will cover all of ones rentals or is there another option?  

I'm over my limit at Allstate.

Many up front thanks,

Jim II

Sunny South, Alabama.  

Originally posted by @Jim Deshler :

I have purchased my 8th buy and hold rental property.  I was informed yesterday by Allstate that they will only insure five (5) rental properties.  What do I do?  I could go to numerous different insurance companies once I reach every five units but that would be a record keeping nightmare.  Is it possible to buy an umbrella policy that will cover all of ones rentals or is there another option?  

I'm over my limit at Allstate.

Many up front thanks,

Jim II

Sunny South, Alabama.  

 Jim, with 8 locations, you should really look for a commercial policy that can have all locations on a single policy.  So many options to choose from, unfortunately your Allstate agent does not have access to them.

If you want to look into options, do not contact other Home and Auto companies like Allstate, but rather Independent Insurance agents who represent multiple insurance carriers specializing in the REI space.

I'll drop you a PM with some company names. 

@Jim Deshler

Jim, I ran in to the same problem, almost. I had 7 properties with them when they made the rule, so I had to use another insurance company for 6 other properties. After a couple years that insurance company changed hands and didn’t want to do rentals any more. 

I contacted my allstate agent and said I would be shopping around my insurance so I could get all my properties under one company and therefor had to leave him. 

He called allstate and they asked him to write up a “business case” for accepting all my properties. A couple weeks later they underwrote all 13 properties at an even lower rate. This was just over a year ago (maybe 13 months)

If your agent wants to call my agent pm me and I’ll give you his info and maybe he can walk your guy through it, or give him some pointers. 

Thank you Jason and Bill.  I am going to talk to my silent partner tomorrow and see if either option will work for us.  I started listening to Bigger Pockets several months ago.  Great Great Great site . This is my first use of the message board.  Both answers were appreciated because there are ZERO sources of information where we live.  

@Jim Deshler   Keep calling around.  I have over 20 properties in the hands of two companies.  I've never hard a word of complaint from them yet.

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