One Property, Two Separate Insurance Policies

3 Replies

Recently I was contacted by my property manager about the roof on my property possibly needing replacement. The roofing contractor saw a lot of storm damage and suggested I call my insurance company to file a claim. 

A little background on this property, I bought it in July 2014 when I lived in Arizona with an FHA loan and 3.5% down. It is a 4-plex, but has two separate buildings, each with two units. There are four different street addresses on two different streets, but it is just a single parcel.

I filed the claim and the claims specialist gave me an estimate for just one of the buildings. I asked if she had the opportunity to look at the other building and she told me that it wasn't covered under the policy. I was confused, but I assumed that she was mistaken and that is when several weeks of back and forth between myself and the insurance company began.

The insurance company insists that the policy only covers one of the buildings. My arguments was that it is a single property. They kept insisting that it was two different properties. Finally I literally had to show them the county plat map and give them the legal description because they could not understand it.

When I purchased the property, I explained the unique situation with the addresses to my insurance agent and he assured me that everything was good. Fortunately I have not had any major issues because apparently half my property has been uninsured for OVER 5 YEARS.

I lost the battle with the insurance company and I immediately signed up for a second policy (that's right, I am paying double) until I find a new insurer. 

The whole situation has had me pretty stressed out. Has anyone else experienced this kind of thing before?

@Anthony Gayden I would be checking other insurance providers to make sure you have the proper coverage. Insurance can and will bite you if you don't have the correct coverages in place, you know this first hand. Not fun!

I will pm you an insurer that handles a bunch of investors for us.

Its always important to look at what your policy covers.  Each of my policies state the number of square feet, the number of bathrooms, what the flooring is made of, quality of finishes, etc.  

Does your policy show it covers 2 buildings or the square footage of two buildings?  If not, then you were not paying a premium for both buildings.  

I also update my policies as things change, room addition, better quality finish, different flooring or siding, etc.  It does change the premiums, often less that $50, but it puts them on notice that if something happens I now have an expectation of a different fix than before.

You might want to review all your policies and make sure they clearly insure what you hope they do.

You went through a hard pathway to find out what was insured, and not,

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