Flipper/Rehabber · Columbus, OH · Member since 2019 · 14 posts · 11 votes
Does anyone have experience with Berkshire Hathaway GUARD? We recently received a quote from a broker that is about $1000 a year less than other quotes. My concern is that the policy is listed as a homeowners policy and being owner occupied. We are closing on a four plex that will be rented. No owner occupants. The broker states that is how Berkshire policy’s are written. Another insurance agent has told me the policy is not right and will not protect us. Both are sales people trying to make money. Any help? Thanks!
William
You are right to check it out. The first agent is correct. We write with Guard as well and they insure the rented 1-4 family properties under a homeowners form. When we rate it up we have to indicate that it is not owner occupied.
Some carriers will write rental policies on HO-3 or HO-5 forms, which are built for homeowner's and then add in endorsements to cover loss of rents and other non-owner-occupied endorsements. The majority of rental property policies are written on a DP-3 or the like as those are more tailored to non-owner-occupied properties. To fully understand and be confident in any policy you choose, you should read it cover to cover. However, just like Terms and Conditions we blindly agree to, we often don't.
In lieu of spending hours of your time to translate insurance language, working with an insurance agent that you trust will allow you to have confidence in the carrier and policy that they are choosing for you. If you don't believe that the agent you are working with has your best interests at the top of their list, find a new one.
@Sam Brust Thanks Sam. I have a policy on a rental with State Farm and my agent with them is who told me that it was not the correct policy. He’s been emailing every couple days asking if I have any questions to make sure we are covered.
William
You are right to check it out. The first agent is correct. We write with Guard as well and they insure the rented 1-4 family properties under a homeowners form. When we rate it up we have to indicate that it is not owner occupied.