All Forum Posts by: Ian Shinnick

@Alex Cabej the mortgage company or servicer usually require a specific limit in order to comply with lender requirements. It also may  be that the carrier applied an inflationary increase on the value and that has caused the increase. 

You can make a request directly to the carrier and they may be able to reduce the value. They will typically ask to see an appraisal so they can document that the requested value is accurate. 

@Marisa Alvarez I think it boils down to a cost/benefit analysis. If you can buy a $1M policy for $200 and or a $5M for $500 then a $5M may be worth the cost. I have seen some weird claims as an agent and so I tend to buy more than less on my investments but it all depends on what helps you sleep at night. 

In the event of the fire it would all depend on if you were liable for the loss. If the fire was started by the tenant then your liability would be minimal. They would have to prove you were negligent in some way, shape or form. 

If it helps, I have a number of clients with 500+ units and most purchase $10M umbrella policies with a handful electing for higher limits in the $15M - $25M range.

@Marisa Alvarez I am a commercial agent based in Florida and with clients across the county. Pricing seems expensive. Not sure which carrier that is but I have several clients where I placed a $10M umbrella for less than $40 a door.  

Umbrella pricing is rated based on crime rates, type of tenant, underlying liability terms, conditions and pricing, etc. That being said there are a number of programs available that your agent should be able to price. 

Another strategy is to ask the GL carrier to provide a "per location aggregate" limit. This means that a loss at one location will not erode the limits at another location, ultimately, giving you more coverage. Then you could place a $1M umbrella at a lower cost and still improve your coverage. Just a thought. 

I am a commercial insurance agent and have clients all over the country. It is hard to give you a definitive answer without knowing more details on the property (square footage, construction type, etc.) but that does seem high. I would recommend reaching out to a local agent and asking for a quote from an excess & surplus carrier. I won't bore you with all the insurance jargon but those carriers file their rates differently. This gives them the ability to quote Actual Cash Value and be a little more aggressive on the rate. Carrier would be someone like Lloyd's of London. 

I am a commercial insurance agent with clients in Florida and there are several other carriers that will list a Trust as an Insured on the policy. I have a few clients that have insured their properties thru their trusts. Not sure why Peoples Trust would have an issue with that set up but, then again, this is the same company that was suing their own insureds in the Tri-county area to avoid having to pay hurricane claims.