All Forum Posts by: Derek Lacy

Joanna L. Or even more scary. What if your guests do something illegal to the neighbors. Say physical/sexual abuse. Or burglarize. Or maybe the neighbors sexually abuse your guest. Sexual/physical abuse is a common exclusion. How many here look over thei policies that closely. To actually answer your question. If your guest’s visitor gets hurt, that usually going to be easy enough to pick up by the Liability (subject to the exclusions on the policy, as in on/off premise, etc.)

Depending on your scale a monthly reporting form property policy with the vacancy clause removed is ideal, include GL for each property on that. But to get that type policy, you need to be in the average 50 units owned at anyone time. Otherwise your stuck in the call your agent every time you add a property.

You cannot have that covered affordably on a guaranteed cost policy. That’s your risk as a landlord. So manage your risk. Low chance a great credit score, decent security deposit, no eviction, no criminal conviction tenant causing such issues. Dealing with any of the above? Charge more for your risk.

AIG and Zurich are the only two actual builders risk policies I’ve ever seen for remodeling. You will hear Foremost or NREIG but neither are a builders risk as they do not cover theft nor materials on property that are not attached. Proper security measures, whatever the builders risk insurer requires. At minimum, all means of ingress/egress secured.

Also. One thing that is never spoken about much on this forum. You are absolutely commingling personal and LLC assets by transferring for $1. It would need to be a fair market value (arms length transaction). And you’re commingling by funding the house with a personal loan. So why bother with the LLC? I mean if any attorney straight out of law school will be able to pierce the veil, why set up an LLC? Unless you just like to pay the state and your cpa extra fees, just send them a gift. Otherwise just buy an umbrella insurance policy.

Ericka Medina The Golden/Arvada hailstorm changed CO insurance markets. Yes a high scrutiny will be made on roofs. And yes absentee landlords present a huge increase in risk. Do you have professional property management in place (not some friend that will look after the house, but a professional to mitigate that hazard). But the TL:dr of you post was I present a significantly higher hazard to my insurance company but I don’t want to pay a higher price. That’s not how insurance works. Replace the roof, hire professional management and you’ll get the rates you desire. As for the Tlock shingle comment, it’s not the fail rate (at this point) that causes the increase. It’s the fact that they are no longer manufactured making simple repair impossible.

Ed E. Even better news. If you keep your X flood policy, you will stay at X rates. But don’t let it lapse for one second. Also don’t purchase private flood or you lose it too. You can also transfer the grandfathering to the new owner. But it’s a tricky process. Good luck.

Yeah this is very common requirement. Any property manager that does not require this should be looked at with a healthy dose of skepticism, as they are not even doing a best practice to protect themselves. Imagine the best practices they will skip when it’s your money on the line.

Agree. Those rates seem to be midwestern rates not northeast rates on coverage.

Chuck Masters Proper or CBIZ. Only two markets in FL that properly write STR. I mean I’m sure Lloyd’s or Lexington would write something, but not affordable. Yes your agent is mistaken. By far most businesses in the US are in a personal name, so it sure would be odd that you cannot get it. The problem in you are between needs in FL. Most commercial agents don’t make a dime helping you because the premium is too low (usually need to be about $20k in premium), and most personal lines agents only know home and auto. You also hit the nail on the head why most rentals, not just STR’s are much better covered under a commercial policy.