What Could Be Done Better

Question

I am new to insurance for landlording and need help to see if i can save more on insurance. I bought for 49.9k with 11700 for down and closing. Worth 82k fixed up in Wichita, KS

Rod Hanks · Answer

@Eric Lee Nation

Hey Eric, Travelers is actually one of my goto companies for landlord insurance. The rates are competitive and the coverage is comprehensive. That’s a pretty good rate for the coverage you are getting on that property. Be careful about trying to save a couple dollars on your insurance polices because you will definitely regret it once you get a claimed denied by one of these unknown companies. Sometimes trying to save $50-$100 will cost you thousands in uncovered claims. Maybe look at raising your deductible to $5000 would give you the savings you are looking for.

Eric Lee Nation · Answer

@Shane H. Thanks but i dont think its workin. Dont know if using a phone is different. Im pretty sure is RCV

Shane H. · Answer

Easiest way when typing a reply -- type @ symbol then question mark -- @? -- when you do that it will bring up a list of all the people who have responded to this thread if you are not quoting someone - you can select their name and it will give them a "notification" they were mentioned so they know to come check the thread.  Or @ (with no space) then start typing the person's name.

Shane H. · Answer

@Eric Lee Nation    I did ins claims in another life for 14 years - I do not recommend that EVER as someone's employment but I did learn a few things.

Here's 2 things agents or no one will tell you -- your Replacement value (RV) on the house is JUICED up way higher than what's realistic -- however you have a relatively inexpensive house so it's not much of an issue - but typically the reason they juice the RV is to get your wind/hail deductible higher -- typically 1%, 2%, 3%, 5% of RV is what your wind/hail deductible will be even if you had a $1k or whatever other deductible they offer for any other peril -- so follow me for a minute - you bought a rental for $150k -- they've juiced the replacement cost to $250k the most likely loss in KS or the midwest in general is going to be wind/hail --- the math actuarial nerds do this so the casino or the ins company in this case has the upper hand -- do the math what a 2% or 3% deductible on a $250k house will be -- I have a commercial building insd for over a million -- the lowest wind/hail ded they will give me is 5% -- the only reason I have ins at this point is I'm required to -- the wind hail coverage is worthless to me with as high as the deductible is.

Anyways with that out of the way - ask your agent if you have a 3% option - at that RCV cost they figured of $99k that wouldnt be much different than the $2500 all perils coverage you have now -- Also I'd wager as someone mentioned dropping the med payments to others coverage -- it probably wont make a bit of difference in your policy cost -- I could be wrong - but I'd guess $25-50 dollars a year -- your coverage is the price it is due to the perceived wind/hail risk the company is putting on KS.

I'm with Big Red and have been for a # of years -- your price to insure that house is on par with what I get from them for that replacement cost -- though i think State Farms game is a bit different they really jack up the Replacement cost so I have higher wind/hail deductibles -- I'd make out good if the house burnt down or a tornado destroyed it - but for a hail claim there wouldnt be much there.

***Also I couldnt tell from your paperwork you uploaded but ask your agent or maybe you know -- do you have an ACV (Actual Cash Value) or RCV (Replacement cost value) policy ????   This mainly pertains to your roof - IF you have an RCV policy - do not switch anywhere else -- that is a good price and a good policy -- if it's ACV you can shop around -- try Shelter too -- I worked for them - all my coworkers were fair -- I just wont get a policy there -- something to do with not shitting where you used to eat and if I had a claim it'd be weird to deal with my former co-workers -- would rather deal with people I dont know.

Eric Lee Nation · Answer

One more thing. How are you making my name appear blue?

Eric Lee Nation · Answer

@Jason Bott what is normal for liability coverage? So ur saying get rid of personal and medical coverage and put more on liability?

Jason Bott · Answer

@Eric Lee Nation There are a few changes would recommend you consider.

1)  Remove the Med Pay (if possible) and putting hat premium towards a higher Liability Limit.  $300k is really low.

2)  You have $2k of coverage for Personal Property, but have a $2,500 deductible.  Basically no coverage it the claim is only on the personal property.  Again, you may want to put this premium towards higher Liability limits.

Eric Lee Nation · Answer

I went thru Wheat State Insurance Group. They compared prices for me. They were very friendly and I thought helpful.

Anjelica Pearson · Answer

Do you recommend the agent you used?

Eric Lee Nation · Answer

I live in Wichita, KS so i wasnt sure if it was high or not. And i wasnt sure if the coverage was too much for the property. I may end up doing that with the deductible because i dont expect anything to happen.

What Could Be Done Better

Most Popular Reply