Long time reader rare poster here.
- I am having a difficult time finding umbrella insurance for my property and I am hoping you all can help.
- I currently own three duplexes in the Atlanta area and I rent my current residence in NYC.
- My current three properties all have Rental Dwelling Insurance, not commercial.
- I am looking to buy a fourth in the next 1-4 months.
- One of my existing properties is in an LLC.
- I do not have a car.
What I Tried:
- I contacted State Farm, my current insurance provider, and they said as I do not have a car policy with them they cannot give an umbrella policy. (Sorta crazy I think.)
- I tried a broker and according to his underwriters I would need a commercial policy for all the properties. (Which I had previously tried to put together but because two of the units are in my name I cannot do.) I also do not want to quit claim to an LLC as it will trigger the due on sale clause in my mortgages as they are traditional mortgages.
I am just hopping someone already lived through his issue and has some suggestions of an insurance company that cover me as I start to grow my portfolio my personal risk is growing which I would of course like to avoid.
Thanks for all the help!
I ran into a similar problem. We have some properties in an LLC and others in our names. I specifically recall that SafeCo wouldn't even quote an umbrella policy unless we had their overpriced auto (and maybe home too!) insurance. It took me a few phone calls, but found a broker who would do it. We ended up not getting the coverage (though we really should). I suspect you'll get some solid answers and I look forward to reading them.
There is a market for your situation. The website is PersonalUmbrella.com. You need to work with an Agent. There should be a list of agents on their site. If not PM me and I will find out. We have used them for many years. They have a Personal & a Commercial Umbrella (depends on number of units you have and size of the properties to tell which is correct for you). I checked their website and they write in both NC and NY. Good luck
United States Liability Insurance Company
I went through an agent for a personal umbrella policy, just had to list all my owned properties (in any names) and they wanted to make sure I had insurance on them, this would cover above and beyond the $500K I have on each property, I got a few Mil policy, expensive, but nice to have POM
@David Boroughes hi David did you ever consider an LLC as well or do you recommend just having an umbrella policy?
@Ryan C. you're in the sweet spot where most "big name" insurance companies don't want to work with you because of your portfolio size because their guidelines say it's commercial. I've seen a number of companies also say they would not provide certain coverage due to the auto policy being with another company.
My best advice would be to work with a broker who you would be able to consolidate all of your policies with to ensure there are minimal gaps in your coverage as well as giving you and your family piece of mind that everything is covered across the board. Hope this helps!
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