I am a new investor, and have not yet purchased any rental properties. Through the process of my due diligence I am getting information for what insurance costs and options are to flip and rent houses. I reached out to my personal insurance broker, who directed me to a friend who specializes in commercial and investor insurance needs. In speaking with her, she told me that they have a product called Scheduled Dwelling Policy that allows multiple (all) properties to be placed under the policy. The benefits are that you have 1 policy for all of your rental properties, premiums are lower and there is better coverage because it is a commercial policy and covers more than traditional residential policy used by many investors.
Sounds like a great option, I don't have pricing on it yet, but wanted to see if anyone is using this type of policy and if there is any feedback on them.
Aaron, I'm not aware of that option for insurance, but I would be interested in hearing more when you find out more. Personally I carry a liability policy for each property then have umbrella insurance for added protection. I'd be curious to know if what you're talking about is specific to Texas or not. I know insurance tends to be much more expensive out there.
This type of policy is the norm in the commercial insurance space, nation wide. Coverages are the same or better as the underwriters may start to compete on coverages offered, not just pricing.
Once you get to several hundred units, no one (client, agent, underwriter, book keeper) wants to just sort invoices, track policy #'s and cut checks several hours a month. That being said, I have schedules as small as 2 or 3 locations.
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