All Forum Posts by: Casey J Burkhead

Hey Jairus,

This will typically depend on the insurance carrier and insurance form used to insure the property.  In my experience, most standard dwelling fire policies (DP3 is the most common insurance form used for single family homes) will not allow for two separate buildings with habitational units to be insured on the same policy.  However, if you find a company that will write them on a Businessowner's policy (BOP) or a commercial package policy (CPP), you will be able to insure them on the same policy.

Hi Neela,

We do a lot of insurance business in the Cleveland area and these items you've mentioned do make it more difficult to place the insurance.  However, there are insurance carriers out there that will exclude older roofs from coverage until you replace it.  And there are plenty of companies that will still write older properties.  The crime rate for an area is typically factored into the pricing for most carriers.

15-40% rate increases are typical across the board for all property insurance, no matter what insurance company.  They say it's due to a combination of inflation and increase in claims frequency.  They have all started to become much more strict with roof condition as well.  Your best bet is to find a good independent insurance agent that has access to several different investor friendly insurance companies.

Hi Lisa - Burkhead Insurance Services has several options for Ohio rentals - feel free to message me if you'd like.

It depends on what work has to be done but there are definitely regional mutual companies that are more flexible with this type of thing.  If you have a good independent agent, they can reach out to their carriers and underwriters to find out if they will give you 30 days or so after policy inception to get it done.

It's just a standard homeowner's policy written for a multi-family home.  There's nothing special to it.  It's possible your current agent doesn't know what house hacking is.

It all depends.  Every insurance company has different rates.  You'd just have to shop them to find out.  However, I have had clients that just call their lender(s) and ask if they can pay their insurance premium separate/not escrow and they will sometimes allow it.

Hey Kevin,

Yes, it is common for this to be an issue if the insurance premium is escrowed with the lender.  I stopped bundling my client's properties on one policy if the insurance is part of an escrow account.  If that's not the case though, there usually is not an issue.

Hi Petur,

It can definitely be beneficial to bundle everything with one personal lines company since the investment properties are in your personal name.  Some carriers are less competitive with multi-family homes though.  If you don't have mortgages on the properties, it can be cost effective to do a property package policy with a commercial insurance company for the rentals - this is where you can insure multiple properties on one policy.  You can still purchase these types of policies even as a sole proprietor.  And then just go with whoever provides the best coverage at the best rate for your personal auto and home. 

For my investor clients, I usually recommend a higher deductible in order to save on premium and to dissuade them from turning in small claims that could cause future policy surcharges.

If you're not worried about covering appliances, you probably don't need personal property coverage on the rentals.  However, some insurance carriers allow you to choose how much personal property you carry on a rental and some don't.

To answer your last question, insurance brokers don't always have access to every insurance carrier or insurance option.  I would ask your agent to at least show you some quotes in order to keep them honest.  If they know you're shopping, they should be doing their due diligence to make sure they're providing you with their best option.  If not, you may want to check elsewhere.

- Casey