Help!! So confused about my landlords policy in Indianapolis

11 Replies

     I hope someone can help me out. I would like to ask seasoned rental property investors with rentals in Indianapolis which company they use, maybe I can narrow my search, or find the right broker. I am in contact with some of them already and I am getting quotes, but the truth is that the best advice comes from the actual landlords. I am still  confused about what do I really need and what estimate price is in a good range. My property is a 1947 property, 4 bedrooms and 1 bathroom, and has 2 detached garages. The property is currently being renovated.  What is a good deductible in your experience? I read in some place that I should get ordinance or law coverage, and water/sewer backup cover. I am overwhelmed right now. The only thing I have clear is that I want at at least 1M with personal liability coverage, but the rest not sure what to do. I just want to get the proper insurance. I spoke already with some agents, but still I would like to see what works for people with similar rentals than mine in Indianapolis. Any opinion would be so much appreciated and it will help me out to learn the craft. 

Thank you so much, 

Get a high deductible. $2500+. You only want to make claims for worst case scenarios. Hail damage roof replacement is not a worst case scenario. I have only had one claim in the past 20 years and it was because of a fire. 

What do you think the house is worth fixed up? You may only want actual cash value. 


@Juan T. This is who I use

https://agents.allstate.com/john-bontrager-greenwood-in.html?utm_source=GMB&utm_medium=Website

He has been pretty good on my rentals and they are also brokers for another company as well for older homes.

I agree with Lee and you can even bump it a bit higher it just depends on how much you have as a safety net for repairs.

Indianapolis is a weird market to get the right insurance since there is renovations going on everywhere a lot of companies don’t even want to cover what the house could be worth just how much you paid for it. Once you are done with the renovation you could probably get an appraisal and shop for a new insurance company but at least you would have a better idean on what you really need.

Good luck!

I would recommend calling a local insurance representative. I have my policy with State Auto Insurance. The deductible is $2500 and property is older than yours. It's running about 1200 per year. Not to bad if you ask me. It's been remodeled as well. My maintenance should be less. A handy man can fix 95% of issues so I won't get the insurance involved. 

I use Travelers. My policy is less than $1000/mo and it includes loss of income (rent) if the property were ever to be damaged badly enough that it was uninhabitable. I'm pretty sure my deductible is only $1k, and I may be looking at changing that after reading these other answers.
Having said that, @Victor Buquer gave great advice... use an insurance broker that can write policies for different companies to get your best rates. Once you have a good quote in hand, you'll need to shop the bigger agencies on your own to see if they have better rates. I don't believe brokers can write policies for Allstate/State Farm/Farmers/American Family.
We also have a separate liability umbrella policy. There's always a large debate on having an umbrella policy or if it's simply better to put all your properties into separate LLC's so figuring out that one is a whole new discussion.
Good Luck!

Originally posted by @Juan T. :

     I hope someone can help me out. I would like to ask seasoned rental property investors with rentals in Indianapolis which company they use, maybe I can narrow my search, or find the right broker. I am in contact with some of them already and I am getting quotes, but the truth is that the best advice comes from the actual landlords. I am still  confused about what do I really need and what estimate price is in a good range. My property is a 1947 property, 4 bedrooms and 1 bathroom, and has 2 detached garages. The property is currently being renovated.  What is a good deductible in your experience? I read in some place that I should get ordinance or law coverage, and water/sewer backup cover. I am overwhelmed right now. The only thing I have clear is that I want at at least 1M with personal liability coverage, but the rest not sure what to do. I just want to get the proper insurance. I spoke already with some agents, but still I would like to see what works for people with similar rentals than mine in Indianapolis. Any opinion would be so much appreciated and it will help me out to learn the craft. 

Thank you so much, 

During renovations you need a Builders Risk or Vacant Building policy.  If the property has never been rented/leased while you have owned it, most claims will be denied if you have a standard landlord policy.

Once the property is occupied, then you can get a standard Rental Dwelling/Landlord policy. 

No one can tell you what coverage to get.  Your risk tolerance and over all comfort level is what should dictate what you want covered and what you should self insure for.

From your comments above, and being an out of state investor, I'd suggest going with most of those additional coverage's until you get more comfortable.

Good luck

    First at all, thank you for all of your responses, it helps a lot. I am getting quotes from several companies, estimates are different, and there are a couple of broker agents that I like. It is very interesting to see opinions about the deductibles. One of the brokers told me that the difference between $1000 to a $2000 deductible was 66 bucks a year, and that in his opinion was not worth it. I got clear that I want 1M in personal liability at least. All of them are giving 1M separate episode, 2M total. Not really understand it exactly, the truth is that one of the brokers  kind of explained to me, but I think I would need to see from an example to really see it in perspective. My lender requires loss of rent coverage as well. 

    But it is true, it all come that what makes me feel comfortable, but at the same time I have to see that the numbers are right. I guess it is a process. Most of the quotes run about $700 more or less, but it helps a lot to see what other investors are paying for their policies because it makes you feel more comfortable about the numbers, since you can compare. Maybe my quotes are very low and I think they are great. 

  No matter what, so glad some are trying to help. i love 

Hey @Juan T. I would be interested in hearing what insurance companies you've talked to and what you think about each of them. I am using State Auto and they run at ~$1.2k per year. It would make me very happy if I could cut that down to $700 per year of course :-)

      Simon, I sent you a private message .

      Thank you @Lee Smith , I am going to follow your advice and ask for bigger deductibles. Still trying to compare apples to apples. May I ask you how much average you paid for your properties, so I can compare if mines are too cheap, or if I should better  go with bigger estimates. I don't think a policy that quotes me in the $800 is as good as other that quotes me about $1200, the problem is that I do not really know how to read the real quality of each one.  

    This is driving me nuts,    

@Juan T. Ask the different agents why theirs is more or less expensive.. Show them the quotes and let them pick each other apart...

As for what I pay, most of my homes are low income with an ARV of 40-60k... So I pay $400-500 a year for insurance with a $2500-5000 deductible.

Adding a 2nd vote for Travelers.  I purchase through Geico, which acts as a broker for home owners insurance.  Travelers has been the cheapest/best option every time.

https://www.statefarm.com/agent/us/in/indianapolis/stacey-hamilton-308365czlak

is who we use. Property insurance should be considered a solution for catastrophic events. As a result, high deductibles are often the best practice especially when paired with appropriate liquidity. I like State Farm, but most of the big names are good choices.

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