All Forum Posts by: Derek Lacy

If the property is in the name of the LLC, but you insure it in your personal name and additional insured the LLC, you are at risk of voiding the policy. Due to no insurable interest of the named insured. How many KCMO properties at any given time? I can list the insurers that would be interested in providing competitive coverage.

First off. Big difference between self insured and uninsured. Self insured indicates insurance, a means of financing the risk. As in do you have $1,000,000 set aside to access if something were to happen. Disney does, that’s why insurance professionals agree that Disney is self insured. But guess what, they even buy reinsurance, a backdrop against catastrophic claims. Just not purchasing insurance is a different matter. Here’s a big reason to purchase, your contractor put in faulty work. At 9 years and 364 days a beam kills a child living in the house. They file suit the next day. In Florida, your on that claim. So you spend a hundred thousand in defense to get to a settlement of $500,000. All of that is out of your uninsured pockets. Don’t worry about your contractor he went out of business 5 years ago and cannot he found. But you could and they pierce your LLC veil because you did not act in a prudent and businesslike manner by carrying appropriate insurance. Most of my property managers are “self-insured” in the fact that they carry a $250,000 deductible. Because they are not worried about the small claims, just like you aren’t. But they are worried about the killer claims.

Amad Osman Yes, having inaccurate rebuild can bite the owner. It’s so bad the state of California now requires all insurers explicitly inform insurance buyers of under insurance penalties in the policy. Also the form is very important. Make sure you have Special Form coverage. Replacement is the value, the form is what describes what you are covered against.

When you say portfolio, how many houses are you talking about? Under 10, not really, but over 10 we have programs that cover flood at no additional cost. So it just depends.

Seems to be an Orlando party here. I'm moving down on 10/2, office in Maitland (I write commercial premiums starting at $50,000 to $5,000,000, so don't worry I'm not competing in your market). But to the OP, I believe the insurance game is risk management profiteering by definition. So it should feel like that, when I started 16 years ago, I was told warm fuzzies in insurance are when you get a dog. Is reform needed, maybe. Seems like if a warm fuzzy insurance existed there may be room in the market, but I think it would fail in less than 10 years. Unfortunately it's a complex financial document and someone has to say no. If $20,000,000 was spent on telling people to duck, cover and be safe that's $20,000,000 more they need to collect to pay expenses. So when customers have to choose $5,000 with not warm fuzzy mutual or $6,000 with warm fuzzy mutual, it's actually adverse selection to spend that money. Btw, if any of you know of a nice 4/2, at least 2000 sqft and moderately updated I'd appreciate it, I'll be down the week of the 18th to try to tie up a lease. Orlando rentals move FAST.

Your not going to get many to admit to $1mm losses. But they happen, not frequently, but they do happen.

Jordan Fox I'd really read that policy. The extended replacement cost provision of a policy only pays out if you insured at 100%. That whole no free lunch extends to 25% extended replacement cost coverage. Insurers never offered that as bonus coverage, it's a coverage enhancement. I'm afraid if you ever had a total loss you would find yourself 75% insured. And also since you would be under 80% insured you would find depreciation subtracted from your claim as well. I won't say this is definitely the case, but 98% of the time this is the case. As a CPCU, I'm overly qualified to give this opinion.

Issac Yes Water backup is easily purchased in the central Indiana area. And a city like Columbus, surrounded by three rivers, very important especially if there is a basement. You are purchasing a basic form policy, I'd highly suggest special form. Vandalism, Theft and water damage are pretty likely. Those perils are excluded on your quote.

@Account Closed

You and I are usually on the same side, but you can force insurance through contractual language. Additional insured is tough in some states. 

I actually agree I might have to show my tenants my insurance, it's actually part of my lease packet. I don't care if they see it's covered.

I do that to show them I have my property covered. While I might seem like a reasonable guy that won't go after them after they negligent burn down my house, I show them the insurance and say, but these guys can be rather nasty. 

Never have an issue with $500,000 in liability coverage. They all get it asap. I do come armed with a quote for them, but do not force them to buy from me. And it's always from Safeco, for reasons assigned above on the thread. 

It's not $500,000 of contents we're worried about, they can have $10k in contents for all I care, but 3rd party liability, they will have $500,000 or I will evict (yes I'm the unicorn landlord that actually enforces the renters insurance clause). 

The answer is simple, what is an occurrence?  In the ISO policy occurrence means an accident, including continuous or repeated exposure the substantially the same general harmful conditions.

What is an accident?  Accident generally means a fortuitous event. It is something that occurs unexpectedly or by chance.

 Again all policies are different I can only advise based on ISO standard, unless you present the policy forms. 

$1mm per occ, that's a commercial lease, $100-500k is more standard on residential  

The only issue with that is there an aggregate over the occurrence, it could be $1mm per occ/$2mm agg.  If that's the case after 1 $1mm claim they only have another $1mm to pay out.  Great news!  If they did $1mm in damages, I'm going to guess there is not much chance they could do it again (as the home has probably been completely destroyed)  

But per occ vs maximum?  There is no language in insurance as maximum liability, as that's what the "limit" implies. It is the limit of their payout, therefore it is they're maximum.