Hi BP Family,
I am trying to see what kind of insurance I can have on my first rental home(my primary). I called my insurance company hoping to just insure the outside of the house(to lower my monthly payment) but they quoted me double what I am paying now just because they have been receiving lots of claims from rented homes.
Any idea what I need to proceed in this step? What do investors elect when they want to rent their home or properties?
I would first check with other local insurance companies. You can find references on this forum or from other local investors.
Are you requesting full coverage of actual-cash-value (ACV)? The ACV quotes are much lower, but so is the coverage level. I personally use ACV for the much lower rates.
Have you contacted Foremost Insurance?
I currently have full coverage and it is a relatively new home. I am not sure if the bank will allow me to do ACV for a much lower rate.
let me check Foremost insurance and see.
Thanks for your advise.
@Asem AbuAwad There are significant differences between ACV and replacement cost. There is also something called co-insurance which is important to consider. I just sent you a PM. Give me a call if you like. I'd be more than happy to go over things with you. My info is below.
@Asem AbuAwad Both @Anthony Lee and @Jonathan Alesso have something with the ACV. I also like the idea of looking at Foremost. They will insure properties that most companies shy away from. Working with a broker who represents multiple carriers is probably the way to go in this case. Also, think about choosing a higher dedct. to off-set a premium increase. And make sure you require that your tenants carry renters insurance and present you with a copy of the policy declarations to verify coverage is in-force.
Great advise!! I will go with a broker to check various carriers and am planning to make the tenant have renters insurance prior to giving him the property.
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