Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
9y
Jorge,
If you are an investor with multiple properties I suggest you look for an independent Insurance Agent that represents multiple properties. I've found in our area that the same company that is competitive in one area/town is not in one a short distance away. Also, different companies can be competitive on 1 families or two families but not 3 or 4 family. Over 4 families you need to look for an agent that works with multiple companies that insure Apartments.
Two companies that do a lot of Dwelling/Fire Policies for 1-4 family rentals are:
American Modern Home
Foremost Insurance
They may or may not be competitive in your area but looking up their agents in your area may lead you to some agents who have multiple companies and know the residential market.
Another company that you may want to seek agents for is PersonalUmbrella.com. They do Umbrella policies and can handle certian LLC's and up to 40 units total. In case your company can not cover over all the rental properties you may want to compare them
Lansing, MI · Member since 2015 · 301 posts · 149 votes
9y
Hey guys - American Modern and Foremost are two of the main companies that specialize in rental property insurance. Foremost's headquarters is actually near Grand Rapids. That being said there are other companies that will insure rental properties. You should be able to get Replacement Cost and not just ACV on most of your properties if you want. Be certain that you know the difference between the two at least.
I'm always here for specific questions if anyone has one!
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
I also used Foremost but I recently got a private money loan through Benchmark Capitol in Grand Rapids and they also offer insurance which ended up being MUCH cheaper than Foremost so I switched. Look them up.
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
9y
Jorge,
Actual Cash Value (ACV) and Replacement Cost (RC) are the primary ways Insurance Policies value the coverage on Buildings. RC is the cost to rebuild with the same kind & quality (subject to exclusions, policy terms, and the Limit). The best way to calculate it is to get a builder(s) to estimate the rebuilding costs. The Insurance companies have estimating programs they use to determine what they consider to the be the RC. If you are relying on just the companies estimate, see if the policy allows for "Guaranteed Replacment Cost" or a 125% or 150% option incase the RC is more than the policy limit.
ACV is the Replacement Cost minus the Depreciation. An estimate of the that value is the selling price of the property minus the value of the land. That is not exact and will change as you make improvements. Sometimes the Bank Appraisal or Tax Assessors card with also have estimates for the ACV.
If you are purchasing an older home or one that is not conforming to the current zoning laws (ie. too close to the road or neighbors, not enough parking, etc..) you should check with the town's zoning dept to see if you will have to rebuild differently if it is a partial loss and if it is a total loss. If you will need to build differently, you should purchase Building Ordinance and Law coverage. That allows you to purchase the additional limits needed to rebuild to the higher standard.