All Forum Posts by: Adam Zdunek

Larry, 

I'm interested if you ever found another carrier and if so who.

@Suraj Guptha

Lots of data in AirDNA very eye opening that there are many markets that do extremely well even if not top markets.

Below is the top places per AirDNA data for 2020.

https://www.airdna.co/blog/best-places-to-invest-in-us-vacation-rentals

I have a number of insureds that have rental dwellings in the New Castle market.  You are right, low cost of acquisition and they seem to have their units rented out.  Best of luck.  Let me know if you have any questions regarding insuring the rental property.  Best of luck

@Sandy Metivier there are a number of things to consider while purchasing a rental property when talking about the insurance.  First, confirm your current personal lines umbrella will cover you in another state for rental properties.  Yes, a lot of carriers will extend coverage for your rental property as an umbrella, but will require  you to have an underlying liability limit with the property (could be $500,000 or $1,000,000).  If you already have rental properties you will also want to check and see what the total amount of properties you are allowed before the personal umbrella will no longer extend coverage.  Some carriers have a 2 limit some have 5 limit, etc.  Lastly, your umbrella policy will not help rebuild the duplex if there is property damage, so I would suggest getting insurance on the property incase there is for example a fire and the duplex is destroyed.  

Feel free to reach out to me if you have any other questions as I'm an independent insurance agent licensed in Ohio.

Brad,

I'll DM you a DM for a contact.

Curtis, I would try to find a local independent insurance agent around that area.  I would just make sure they write and understand multifamily as a lot of insurance agents mostly focus on personal insurance.

I have a couple insureds that have recently purchased properties (within last 2 years) in the New Castle area.  They seem to be doing well and when I say that I mean rented as of right now.  I know the properties they purchased we're low prices compared to surrounding areas.

@Quint Powell the insurance is hard to determine because it's all relative to the property itself.  If you are paying $350 a month for taxes and insurance how much of that is insurance compared to taxes, second what type of risk/building is it and finally how do you want to insure it (replacement cost vs actual cash value).  

Too little info to determine if that's a good price for the insurance or not.  

I will tell you that if the building is currently insured with an insurance carrier and the property is sold you aren't able to take over the insurance from the previous owner.  It will have to be rewritten on a new policy and will go through the underwriting process again.  So that same carrier may not want to insure that risk again (depending on the shape of the property and the appetite risk of the insurance carrier).  Always best to contact an independent insurance agent to work you up some quotes to see what the prices would be for you if/when you purchase the property.

Best of luck and if you have any more questions regarding the insurance feel free to reach out to me directly.

@Nischal C. congrats on the first property.  I saw you stated you wanted everything under one umbrella policy.  The umbrella policy is a separate policy all together and won't be able to have just the umbrella policy.  What you want to get a General Liability/Property Insurance policy with an insurance carrier that is able to put multiple locations on the same policy (not all carriers will do this).  Once you purchase this policy you can also purchase an umbrella policy that will go overtop of the other policy.  If you don't want to purchase the umbrella right away you can possibly increase the liability limit on your general liability policy, ask your insurance agent to make the liability limits to a per location limit instead of a policy limit, or both of those things.

Some things to look at in the future for your second, third, fourth, etc properties are the types of properties you are thinking about purchasing.  Depending on the insurance carrier you have they could have different risk appetites with the other properties.  For example if your first purchase is a 10 unit apartment building the carrier you have that insured with might not want to insure your second purchase if it's a mixed used building with habitational risk above, but lets say a bar below.

Best of luck with the property.

Martin,

My best advice for you is to call a couple independent insurance agents in Michigan and explain to them the situation.  It's going to more than likely be a smaller company that will say yes and give you a date as to when you have to have the panel updated or might be a nonstandard company that will write it for a higher premium until you are able to update the box.  Good luck with the new purchase.