Landlord Insurance after a Claim

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Landlord Insurance after a Claim

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Investor · Ventura County, CA · Member since 2020 · 40 posts · 22 votes

I have moved out of my primary residence and intend to rent it out in California. About a year ago, I had a water line break and cause $18k of damage; I filed a claim with my insurance (AAA). The renewed my homeowners policy; however, they don’t have Landlord policies. I went to State Farm and they denied me and told me I’d have the same issue with any major insurance company. Looking for advice or recommendations on “less than major” insurance companies.

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Sherief Elbassuoni
Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
3y

Unfortunately, a lot of big name insurance companies will keep denying you. 

You can try an insurance broker. He/she will look around amongst many companies to get you covered with a suitable insurance

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  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    Did you get denied based on the claim or for the landlord policy.  I don’t have State Farm but they have quoted me before so they do have landlord policies at least in ky.  I currently use Allstate and travelers for landlord policies.  I prefer Allstate because they are cheaper but they have a 4 rental cap so any over that I use travelers.  If you are really having issues talk to a local broker that’s who I get my travelers from and she got it cheaper than I could direct.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Stacey Bochenski

    Reach out to jb lloyd in texas. They have several carriers they deal with and they work primarily with investors

    7e investments53 Reviews
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  • Account Closed
    OP
    Investor · Ventura County, CA · Member since 2020 · 40 posts · 22 votes
    3y

    @Adam Martin thank you! Much appreciated

    0Reply
  • Account Closed
    OP
    Investor · Ventura County, CA · Member since 2020 · 40 posts · 22 votes
    3y

    @Adam Martin also, denied specifically bc of the previous claim.

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  • Account Closed
    OP
    Investor · Ventura County, CA · Member since 2020 · 40 posts · 22 votes
    3y

    @Chris Seveney thank you. I’ll look them up

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    I would hope you would tell your story over and over for all the people that talk of making $2,000 claims. 

    Personally with 12 properties over 24 years (288 property years) I’ve made 2 x $30k claims for toilet supply line failures with Allstate. They were a pleasure to work with arranging the work, paying the vendors and even suing one supply manufacture and returning my deductible, even though they didn’t get all their money back. At the same time I’ve eaten a couple thousand dollar water damage event and an approximately $5k tenant damage at move out. I figure this saves me with lower deductibles and an insurer that does the math on how few claims I make. 

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  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    3y

    Stacey,

    Seek out an Independent Agent(s) that write in CA.  They are better able to tell you what is available from the many companies they write with.  Generally, State Farm uses Captive Agents who just represent them.  

    Further, if there is not a Standard Insurance company that will write it, the Independent agent can quote out Excess/Surplus Lines policies (ie. Lloyds of London or similar).

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  • Sherief Elbassuoni
    Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
    3y

    Unfortunately, a lot of big name insurance companies will keep denying you. 

    You can try an insurance broker. He/she will look around amongst many companies to get you covered with a suitable insurance

    3Reply
  • Account Closed
    OP
    Investor · Ventura County, CA · Member since 2020 · 40 posts · 22 votes
    3y

    Thanks everyone. I ended up going to a broker who has one “possible” company that “might” insure me, otherwise I was going to have to go through a State program. Luckily, that company did and I’m officially insured! I appreciate all the insight. 

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  • Account Closed
    OP
    Investor · Ventura County, CA · Member since 2020 · 40 posts · 22 votes
    3y
    Quote from @Bill B.:

    I would hope you would tell your story over and over for all the people that talk of making $2,000 claims. 

    Personally with 12 properties over 24 years (288 property years) I’ve made 2 x $30k claims for toilet supply line failures with Allstate. They were a pleasure to work with arranging the work, paying the vendors and even suing one supply manufacture and returning my deductible, even though they didn’t get all their money back. At the same time I’ve eaten a couple thousand dollar water damage event and an approximately $5k tenant damage at move out. I figure this saves me with lower deductibles and an insurer that does the math on how few claims I make. 

    I’ll gladly pay a couple thousand dollars to not file a claim. I’m grateful to have learned the lesson on a substantial claim. I’d really be kicking myself if it was just a couple thousand dollars. 
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