All Forum Posts by: Derek Lacy

The whole basis of insurance underwriting is discrimination. Why do they discriminate against the guy with 12 DUI’s? The question on legality is “are undergrad students a protected class.” And that’s a big nope. Do they present a much higher chance of loss, yep. Hence the issue. The issue your agent will have is why did you advertise on a student forum if you would not rent to students? With proof, he’ll get the cancellation lifted. But you’ll be on an underwriting watch list, just get ready to prove it every year.

@Jon Holdman  you obviously have experience because from a lay standpoint, that’s almost exactly how it goes. 

Yes depreciation in insurance is certainly never accounting depreciation, but actual building depreciation. Comes with the rule of indemnity. That you are not supposed to be enriched by insurance.  If that roof should have been replaced 3 years ago your not out any money when it hails and destroys the roof. 

Of course, replacement cost turned that on its head. And now we’re seeing the reaction 30-40 years later (limiting of replacement cost in high wind/hail states). 

Roy N. The only pet damage covered on the US renters policy is damage to property other than the premises rented and bodily injury to third parties. But the dog chews up all of the trim, carpet and vinyl in the rented premise... not covered. Not even covered by the owners dwelling policy.

Thomas S. The off the shelf renters policy is a package policy which includes personal liability in the states. Canada is a little different in that regard. But the damage to the rented premise is very limited as it only covers fire, smoke and explosion as perils. So it’s certainly not a cure-all, but it does help recovery if they burn down your house.

Guaranteed you can find it for less. Of course protection will most likely be less too.

Can tell the Floridians on here. I would not rent a house down here that did not have a pool. But I want Class A tenants down here and I buy class A properties in Fl. My Midwest rentals, no pools (I’m a native Hoosier, pools only work 3 months out of the year, FL, almost all year). I pass through the $85 monthly pool service fee. Occasionally you have to buy a cell, rarely a pump. But generally adds $200-400 a month (on top of the service fee). Then adds in $350 on the high side for insurance. Then again go to a nice neighborhood in Fl 8 out of 10 houses have pools. Nice neighborhood in Indy, 1 out of 10.

Rick C. Depreciation is already factored in on a total loss. Hence you insuring for $75k vs $100k. Where depreciation hurts is a partial loss. Say a $30,000 claim happens (estimate from contractor). Now depreciate, could be higher, but we’ll use 25%. And subtract deductible. So the question is do you have $10k in cash reserves on this property? Or would it be better to spend $300 and move it to full replacement?

Oh. Yes an official denial reason helps. If that’s all they got. Was it rented at the time of the occurrence (the fire)? I can see a denial based on reasonable time. I can see a denial based on no damage to subject property (as you stated all loss, but loss of rental income, was that of the COA). I don’t see how they deny because the lease may have expired (because it may not have).

Did you have Business Income - Dependent Property coverage? If so, your getting screwed, but it sounds like you have a rental dwelling policy that pays loss of rent to you for the time period it takes to reasonable repair the insured dwelling, not the attached common area. Keep disputing, might get you a few bucks, but it seems that smoke damage could be cleared in one month. So it’s a sound denial.

Unless a judge signed that letter. Throw it in the trash and turn in a claim to your liability carrier. Failure to turn it in could exclude further coverage. But have their atty talk to your (insurance company’s) atty.