All Forum Posts by: Brian Armstrong

As an independent insurance agent and investor I require all tenants to have at least $300,000 personal liability (it's not much more than $100k base ... and truth be told I prefer them to have $500k for less than $1.00 per month more). Their renter policy protects you and your assets. 

It also protects them! Let's say they're on a ski vacation and run into someone and get sued. Their liability follows them :) 

What if they leave a candle burning and it damages more than just your unit? It would extend there as well. 

Lets say they loose their belongings (furniture, clothing, electronics, kitchen wares, etc.) there would be coverage for them to be made whole.

Good job requiring your tenants to have renter's insurance - it's as beneficial to them as it is to you as the investor! 

I'd be happy to answer any specific questions you have.

Successful investing, 

Brian

As an independent insurance agent and investor I second what @Jason Bott said above. Going forward I'd choose an agent I know, like, and trust to take care of me and protect my investments. Don't be afraid to ask them about if/how claims are paid out! Or anything else you'd like to know - I tell my clients "I can tell you what time it is or how the watch is built" ... basically I'll tell you as much or as little as you'd like to learn - and your agent should do the same! (There are a lot of great commercials from companies who are notorious for not paying claims.) Sounds like you made a good choice!

Successful investing,

Brian

It depends on the company. As an independent agent, I represent many companies with many different appetites. For example Company A doesn't require the underlying policies to be with them; Company B only allows up to 14 rental properties (total doors, not total roofs) before they don't want to provide the umbrella; etc. 

Things are changing a lot across the country in the insurance industry. I recommend finding someone you know, like, and trust to advise you on your specific needs. 

That does seem like a big jump but there's a lot of factors that I can't guess at without more details. 

Successful investing,

Brian

I'd suggest looking for an independent agent - they've got options and aren't stuck in a box. Whether it's a owner occupied, landlord policy, or vacant/flip policy an Independent Agent is the best way to go. Find someone you know, like, and trust to make them a member of your team. I'd be happy to help point you in the right direction if you need help. There are a lot of nuances emerging in the insurance world ... things to be on the lookout for:

-Deductible (many companies are increasing deductible
-Replacement Cost (rather than "depreciated value", called ACV)
-Personal property coverage (Landlord policies to include appliances, window coverings, etc.)
-Liability at $500,000 (it's a cheap upgrade to almost double what I see mostly at $300k)

Let me know if you'd like help getting pointed in the right direction! 

Your agent can advise you of specifics on their particular restrictions but some of the common breeds are:
Doberman
Rottweiler
Pitbull
Stafforshire Terrier
American Bulldog
Akita
Chow
Wolf Hybrid (should be a "duh" here ... but you'd be surprised)
German Shepherd

This isn't a comprehensive list but one to at least get you started :)

As an investor and Independent Insurance Agent, I agree with @Lynnette E. above. I would (and do) require my tenants to prove they have renter's insurance with at least $300,000 in personal liability for themselves. Not only does it add a layer of protection for the you, the property owner/investor, but it's also beneficial to them both now and as they take their next step in purchasing a home (depending on the company they can receive discounts for having prior insurance). Plus, insurance companies are very polite: they like to let everyone else go first :) Meaning a lawsuit about the dog would hit their policy before yours as the landlord.

As an aside, I would have clear, written guidelines that are applied to EVERY potential tenant. Make sure if someone ever accuses you of unfair practices you can show a clear list of criteria (that meet the fair housing and local laws) that you've applied to EVERY potential and current tenant. Good for you for deciding how old you want pets to be. I would have breed restrictions too, as many insurance companies will cancel you or deny claims for certain breeds. 

Successful investing,

Brian

Without reading the HOA documents it's impossible to say. As an investor and Independent Insurance Agent I'd recommend getting the HO6 condo insurance. You will have both liability protection as well as coverage for the things you own in the condo (appliances, window coverings, etc. ... and I'd probably throw in some "building" coverage as well -- condo insurance usually covers "drywall in" which means flooring, cabinets, drywall, etc. while the HOA typically covers the sticks and bricks. Even if the HOA covers the interior, it's good for you to have liability coverage. In my opinion the protection it provides is too cheap not to purchase. (If someone can sue Mickey D's for spilling their own hot coffee in their lap I'd want liability for myself!)
Typical Home and Condo policies do not cover flood damage. If the property is located in a flood zone you'll likely be required by the lender to purchase flood coverage separately. There are a few companies outside FEMA who provide this coverage. If you can't find a local agent to help, I'm licensed in 45 states and have current clients in Texas and would be happy to help or help point you in the right direction.

Any agent should be able to provide you with Evidence of Insurance upon request - it shouldn't matter if it's with the same carrier as the HOA. Some carriers that cover the HOA won't write personal policies.

Successful investing,

Brian

Hi Brent,
Congrats on your first Air BnB! As an investor and insurance agent, I feel your pain ... in both worlds. Many insurance companies don't like short term rentals like Air BnB. I recommend against trying to sneak this past your agent: they're on your side and want to make sure you're protected! 
I work with at least 3 companies that don't mind the Air BnB and will insure it properly as a landlord policy with short term rentals. If you can't find a local agent I'm licensed in 45 states and would love to help ... or at least help point you in the right direction. 
(I understand what @Matthew G. is saying above but I believe he means "landlord" where he says "renters" insurance.) @John Mocker is right that you should look for an Independent Insurance Agent - we're not stuck in a box and can tailor the right fit and protection for your specific needs :)
Successful investing,

Brian

The ACV is basically depreciated value of the home. As an investor and Insurance agent I won't write ACV policies - that would be a bad surprise if there is a loss! 

Just fyi, insurance isn't concerned with the market value (appraisal of $120k in your case) it's concerned with the cost to rebuild as @John Underwood mentioned above. 

If $25/month (you mentioned $about $300 more per year) breaks your deal, it isn't a deal. 

Successful investing,

Brian

Call Luke at 970 Services! Super great guy, super high integrity team!