Rental Property Investor · Newton Falls, OH · Member since 2019 · 22 posts · 9 votes
Hey All,
I currently have 6 properties under statefarm insurance and my personal home/auto/umbrella through Allstate. Farmers Insurance thinks it would be smart to have all of my policies through Farmers Insurance (my 6 of my Rental Insurance Policies, Home Insurance, Auto, and Umbrella). I feel like this is a bad idea, what if I have a claim on 1 rental and all of my other policies shoot up? Is this a bad idea?
@Derrick Wortman That’s a valid concern! Bundling can sometimes save money, but it also concentrates risk—if you file a claim on one property, it could impact all your policies. I’d recommend getting quotes for bundled and separate policies to compare pricing and coverage. Also, ask how Farmers handles rate adjustments after claims. Some investors prefer spreading policies across multiple providers to minimize risk. Worth running the numbers before making a switch!
Sometimes you can get discounts by keeping all of your policies with one company, but sometimes you don't. I would probably keep my personal policies all with the same company for this reason. As for the policies on your rental units go with whoever is the cheapest. Just make sure your limits align with the requirements of your umbrella policy.
I currently have 6 properties under statefarm insurance and my personal home/auto/umbrella through Allstate. Farmers Insurance thinks it would be smart to have all of my policies through Farmers Insurance (my 6 of my Rental Insurance Policies, Home Insurance, Auto, and Umbrella). I feel like this is a bad idea, what if I have a claim on 1 rental and all of my other policies shoot up? Is this a bad idea?
If you have a claim on 1 rental, everyone else will be able to see it regardless of insurance carrier as it goes on your CLUE report. It may be a good idea to keep it all under 1 carrier just for potential discounts. Wouldn't hurt to get quoted on all of them with the discounts applied and see what comes back.
@Derrick Wortman That’s a valid concern! Bundling can sometimes save money, but it also concentrates risk—if you file a claim on one property, it could impact all your policies. I’d recommend getting quotes for bundled and separate policies to compare pricing and coverage. Also, ask how Farmers handles rate adjustments after claims. Some investors prefer spreading policies across multiple providers to minimize risk. Worth running the numbers before making a switch!
I have found my clients like the ease of use of one policy, and for discounts. If you have a claim some carriers are able to remove that one location from the others to help on cost and not have them rated for a claim for each property.