All Forum Posts by: Jason Bott

@Sam Leon 

It sounds like you have a fully underwriter policy with agent A,  Meaning, an underwriter has looked at all of the details of your property and created an accurate Rebuild Cost estimate.

 Agent B probably has a ballpark estimate that has not had any underwriting interaction.  If you could move to Agent B, chances are once it went through the underwriting process, you would end up with the same product you had with agent A.

@Chris Vail Strictly from an insurance perspective, insurance cost on a personally owned rental can be more competitive but 10%-20%.  Depending on your particular insurance company, you will usually max out at the personal policy capacity @ 2-3 buildings, 4-6 total units & state you need to move to a commercial policy.

A personal umbrella policy is almost always less expensive than a commercial umbrella policy. So depending on how many toys & personal autos you have, it is possible you could buy $2mil umbrella for $150-$200 per year. Every investor has a different comfort level to their protection, but maybe this enough to make you comfortable before moving them to an LLC.

@David Johansen 

I show $240k building value ($100 per sq/ft) Replacement cost, $500 ded  in zip code 27284 right around $720 for a landlord policy.  you should be fine with assuming the insuraca will stay even.  good luck.

@David Roberts 

You will want to get your own insurance quote as it looks like the pricing is "Grandfathered".  In the economic downturn the insurance carriers were looking for insurance premiums which created downward pressure on the premiums.   Now all of the insurance companies are showing a loss on this business and rates are much higher for new biz.

@ 700 sq/ft per unit = 2800 sq/ft.  The insurance carrier will most likely ask for $90-$100 per sq/ft, or $252k-$280k for Replacement Cost (which most banks seem to be requiring of late).  A competitive "new Business" rate is $0.30 per $100 of value, or $756 - $840 per building or $2268-2520.  Please note that older roof, fuses, building age greater than 50 years old can all drive the price higher.  Also keep in mind the underwriter will be underwriting you and your experience with multi's. 

For all these reasons I suggest to use a conservative annual cost of $3,000.  Hopefully I am wrong and you can get the $1500:)  Good Luck.

If these contractors do not have their own work comp coverage (great chance of this hiring off of craigslist) you could be liable for any injuries they claim to have received on your project. 

Can be insured but xpect to pay more for insurance.  Even if your current insurance carrier will do it, they will most likely have many "Loss Recommendations" that will need to be implemented before they will start coverage/ add to your current policy.  Example, would be Locks on gates, signage, safety items like a life preserver in clear view, etc. 

good luck

@Rob K. 

AS I mentioned above, all of the things that can go wrong will typically be covered outside of the Maternity endorsement and picked up by the main health policy. 

@J Scott @Brie Schmidt  The Maternity coverage "definition" in a policy can differ from state to state.  That being said, a typical definition covers "Routine Delivery".  Any complications to the mother are picked up outside the Maturity coverage under the main health policy. 

I really looked into this prior to having 3 out of pocket to make sure we weren't risking our future.  If something goes wrong, it can get crazy like in the case of J's wife.

It's best to run through all of these scenario's with an agent domiciled in your state.  These health laws have been all over the place the last few years and things can change at any time.

On an individual plan, the maternity coverage can have an 18 month waiting period before there is coverage.  Policy starts 1/1/15, coverage will not be effective until 7/1/16

So, if the maternity endorsement is $250 per month you will need to pay in $4,500 before they will cover any part of the delivery.  Not to mention there is usually a separate deductible for the delivery of $1,000-$5,000  You are basically trading dollars with the insurance company.   

I have paid for out last 3 kids out of pocket, last one 18 months ago was about $18,000 for everything.  BUT, if you negotiate with the hospital billing department, they can discount you 40% for paying cash.  Back that up with they can not charge you interest, you can then pay a set amount per month for 18-36 months. 

@Brad Gibson Health insurance rates are based on the health providers around your zip code so costs very from state to state and city to city.  I have been self employed ever since college, (20 years) and I consider it just a cost of doing business.  Yes, it's a ton of money, but you are also limiting your income when working for someone else.

I have to agree with @Darrell Shepherd just go out and make as much money as possible so the insurance is just a drop in the bucket.