I have 5 rentals in Ohio and I am shopping for umbrella coverage. What are the key things that I should look for? Do I need a business policy or does a personal policy cover my rentals as well? One of the insurance agents from NREIG told me that I need a business policy. Is that true? A lot of posts on the forums here indicate that a personal policy will cover rentals as well. So I am confused. Any inputs on this will be helpful.
Wondering the same things. Was going to buy a commercial policy but my personal State Farm agent convinced me that they could cover my Ohio rental just the same. But I have my doubts; don't want to find out I made a bad decision when I need to file a claim.
If you can get a commerical policy it will always be better for rentals. My 8 rentals are covered by a commercial policy that includes umbrella as well.
A personal umbrella policy will cover your rentals as long as the deeds are under your personal name. Each insurance company has it's own rules on how many rentals they will cover on their personal lines umbrella. There are some companies who will do more than 4 properties but if you plan to purchase more investments, I'd start looking for a stand-alone policy. I have one company that will write a personal umbrella for up to 30 properties.
Or, you can go the commercial property package route. That's what NREIG suggests because that's what they sell. Though the liability coverage is there for all of the properties, sometimes the coverage is not as good. You would want to make sure you find out if there is replacement cost coverage and what perils are covered. There are many different options and companies for this type of policy. When you start getting into 10+ rentals, this is usually the most efficient route.
An Umbrella policy needs to match the underlying policy you have on the rentals.
NREIG is a commercial product, that's the reason for the commercial Umbrella suggestion.
The State Farm policy is most likely a personal policy, that is the reason for the Personal Umbrella suggestion.
As far as coverage goes, an Umbrella policy rarely adds or removes coverage, it just raises your Liability limit.