All Forum Posts by: Brian Sigrest

@David C. I agree with @Rod Hanks. With carriers that allow $1MM in liability on SFHs, it may be worth getting that as it may only be (literally) a couple dollars more per month than $500k liability. But as Rod said, a $10-20MM umbrella is pretty excessive for most people. 

Hey Orie, I'm an insurance broker.

The cost of insurance varies widely (not the answer you probably wanted to hear, haha). We've insured single family homes for $300-500/year up to $16,000/year for an apartment complex. 

Dwelling coverage, "landlord insurance," with at least $500k liability per house is recommended for small homes and portfolios, but once you get a larger portfolio an umbrella definitely doesn't hurt.

I'm biased, but an independent agency will typically give you much better options than a captive agency, simply because of the fact that they can shop around and have a broader knowledge of each carrier's pros and cons.

Most of the time you should be able to get bound the same day as you request a quote. There are some groups that we work with that don't have a modern quoting and binding system, so all communication is through emails and old school forms. In those cases, it may take a day or 2 to get bound.

It never hurts to shop around whenever your policy comes up for renewal!

Here's your insurance FAQ of the day:

Q: Why is “Coverage A: Dwelling” in my insurance policy more than the market value of my property?

A: Coverage A is not based on the market value of the property, but on the estimated reconstruction cost of the main dwelling structure should it be destroyed by an event covered in your policy (assuming your coverage is for “replacement cost”). Some people get confused about this! As most of you know, the price of construction has gone up in the last year, so make sure your agent is reviewing your policy at renewal to adjust your coverage as needed. You don’t want to find out the hard way that you’ll have to pay thousands of dollars out of pocket even though your insurance company “covers” a loss.

Hey Gigi,

For the STR-specific side of things, many people use Proper. Basically it's an "I don't trust AirBnB's insurance policy" type of policy. It covers many of the same things AirBnb says it will cover. It would be worth checking out if you haven't already!

Hey Kevin,

It's best to have an insurance broker who can shop around for you. State Auto, US Assure, and OSC are some companies that I have had good success with for my clients. They tend to have the best coverage at the lowest prices. It does depend on the state and location though. Feel free to PM me if you'd like more information. 

Hey Hai Le, I am an agent for a small independent agency. What state is this rental in? I may be able to help out. We can get quotes from several carriers to help you find some cheaper insurance. Feel free to PM me if you'd like to try and cut that cost!

Hey Jessie,

Those rates seem a bit high to me. I am a broker for a small independent insurance agency, which means we can get policies from many different carriers. We have really good carriers for rental properties. I can PM you and get a quote for you if you'd like! 

I'd also recommend a 500k liability limit and a $2,500 deductible. Then if I were you, I would require your renters to get renter's insurance (which many times costs less than $20/mo). That covers you really well in case anything happens, and it won't cost you an arm and a leg!

Hey Hana! I'm an agent with a small independent agency, Red Rose Insurance. We specialize in REI and we're able to shop around to get you the best price. Feel free to PM me if you have any questions or want a quote.