Chicago, IL · Member since 2017 · 40 posts · 17 votes
About to close on my first investment property (first property ever for that matter) and am in the process of getting homeowner's insurance quotes. So far, it seems like my best option will be to go with NatGen as the provider, but they offer some additional options that I'm unsure of regarding their value.
1. Water backup insurance
2. Appliance & equipment breakdown insurance
3. Service line coverage insurance
Does anyone have experience with NatGen, in particular these three options? Any thoughts/advice are greatly appreciated!
Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
9y
It seems to me you are getting two different kinds of insurance mixed up. There is property insurance, which covers damage to the building, some liability, possibly things like sewer backup if it is a good policy, and lost rent if it is a landlord policy (among other things). Then there are policies that cover the building's mechanicals. You need the first kind, you might or might not want the second. I am simplifying a lot here. A good indendent agent can help you.
It seems to me you are getting two different kinds of insurance mixed up. There is property insurance, which covers damage to the building, some liability, possibly things like sewer backup if it is a good policy, and lost rent if it is a landlord policy (among other things). Then there are policies that cover the building's mechanicals. You need the first kind, you might or might not want the second. I am simplifying a lot here. A good indendent agent can help you.
Thanks - I realize that they are different, the three options I provided above are just that, optional. I've never owned any property period before so I don't really know how valuable these options are, hence why I'm asking for opinions.