Landlord Insurance w/Pending Claim

1 Reply

Hi BP! 

I'm a buy-and-hold investor and I've found myself in an interesting place this week. I currently have 5 rentals under my own name and I'm in the market for a few more. While getting an insurance quote on one that I'm ready to pull the trigger on I found out that I cannot get a new insurance policy with my current carrier because of a pending liability claim on one of the current properties. This makes sense (kinda...), so I called a few more insurance companies and none of them are willing to issue a policy because of the pending claim either. I can't buy new properties if I can't insure them. 

I've been told that this claim could take years to settle and I don't want to be out of the REI game for years....that really derails my growth plans. I've thought of a few paths forward and hoping for some advice from this community.

1. Buy new properties in wife's name (she's onboard, of course)

2. Start LLC for new new purchases (I'm unsure how this changes lending capability or insurance needs)

3. Commercial/Master insurance for all properties (not sure if this would help?)

Maybe there are other or better options I haven't thought of? Any advice or recommendations are very much appreciated.

@Brian Olson it's common for insurance companies to not want to take on new policies that have unsettled claims.  Especially if you are getting quotes from personal insurers (that do home and auto).

As for a new locations with no history, that is not an issue on the commercial side.