All Forum Posts by: Jared Townsend

Check out @Elenis Camargo with Thirdstone properties. They can help locate, renovate, and manage your property whether you live in the area or not. 

It is normal and expected for the insurance carrier and lender to both want coverage to be in the name of the deeded owner. It shouldn't been inherently difficult to insure the property in an LLC name, unless you conduct other business activity in that LLC.

No one wants to insure the person that is negligent or ignorant to protecting the home. So if you had water damage, show them that you re-plumbed the house or added water sensors. If you had electrical issues, get a letter from an electrician showing you have pro-actively replaced any potential hazards. You want to show the carriers that you are knowledgeable and engaged in protecting your home. 

All that to say - have a good story that explains why you had the claims and what you have done / are doing to prevent the same claims from occurring again. 

You can request to be added as an 'Additional Interest' to their policy. That does not extend any coverage to you, but it does include you on all policy communications including cancellations. 

I would expect that your typical rental property insurance companies will not want to insure a sober living home due to the increased liability associated with the property usage. Talk to a commercial agent to get property & liability coverage in place; business coverages too if you are an owner/operator. 

There is a spectrum of risk associated with real estate investing. Generally speaking, moving towards the 'safe' end of the spectrum adds cost, complexity, and/or hassle. Ultimately it will be your personal comfort with risk vs. return that determines your choices. 

Less safe ------> more safe

LLCs: None --> Mutliple homes in one LLC --> Individual LLC per home

Insurance: Low limit --> high limit --> umbrella coverage

A majority of our short term rental investors carry $1M liability coverage whether directly on the hazard policy, as an umbrella policy, or a stand-alone commercial liability policy. A select few opt for $2M or more according to their personal risk tolerance. 

One more consideration: the type of trust you utilize may limit your insurance options as carriers like to know who it is that they are insuring.

Feel free to DM me with any other insurance related questions! 

You can insure the home through a carrier offering NFIP policies (read more about that at https://www.fema.gov/flood-insurance) or through a carrier offering private flood insurance (Compare NFIP to Private flood). 

If you live in a Special Flood Hazard Area, you may need to provide an Elevation Certificate in order to receive accurate rates. 

Let me know if you have any other questions!

I've never heard of a carrier taking issue with seller financing before either. If you want to send me the details I'd be happy to review it.