All Forum Posts by: John Mocker

Carlos,

I forgot to mention, there may be agents locally to you that can write in MO.   If it is easier to deal locally, you could check into that also.  The FL Professional Insurance Agents or Independent Insurance Agents Associations may be able to suggest some. 

Good Luck with the properties

Carlos,

I don't know what type of properties these are but there are some basic recommendations I can make:

- look to an independent agent(s) that represents many companies.   Sellect multiple ones and talke to them to see how you work with them.  Most companies have several agents appointed in an area so if you want a particular company (ie. Hartford, Travelers, Liberty, etc...) you should have multiple choices for who to deal with

- look for an agent that does both Personal Insurance and Commercial Insurance (especially if you plan on doing any flips or renovations)

- look for an agent that already writes a lot of what you are doing (apartments, flipping, etc..)

- If you will be using a local realtor, property manager, or CPA see who they recommend

- If you are doing any renovation or new home construction check for a local Building Contractors Association and see if there are any agents affiliated.

**you mentioned "Basic" policy.  Watch out, if you use that term they may think you are asking for "Basic Coverage" under the Property policy.  That coverage is very limited.   You should ask for proposals at different levels of coverage and compare the price vs the amount of coverage.  

Andrew,

Whether or not you use the services of a Public Adjuster, there are a few things that can be done to prepare for what will be needed to settle your claim.  First is to address any immediate repairs needed to secure the property or prevent further damage.   A fire & Water damage restoration company like ServPro or ServiceMaster may be help full in this.  Your agent can probably recommend so.  Second, you will want your own estimates for the cost of repairs.  Third, you will want your rent records to establish what you are losing in rents during the repairs. 

A Public Adjuster normally charges a percentage of the claim payment for their services.  That will reduce the amount you have from the insurance to rebuild.  They may or may not help you recover more but, if you remain stationed overseas they can manage the claim process for you locally.

Julie,

In a Condo Association, the building is divided into Common Elements (Foundation, Roof, exterior walls, etc,), Limited Common Elements (located in a unit but serving Multiple units).  Both of those are generally covered by the Condo Association.  In the Bylaws, there will be a description of your unit and it should define what parts of the building are part of your unit and what is a Common Element/Limited common element.  Depending on the description of the unit, you may or may not own things like:

- Sheet rock of the walls

- Kitchen Cabinets

- Bathroom fixtures

- Piping or wiring that just serves you unit

- other things like a heating/cooling unit, interior doors, ....

There may also be some items that the Association is obligated to replace if they are still original but not if they have been replaced.   I have seen that for Floor coverings and wall air conditioners but other items could be in that category. 

If you do not have a copy of the bylaws, the Property Management company should be able to get them.   Once you have an Idea of what parts you own, an estimate can be made.   

Our agency has offices in NJ so if you need help or quotes please contact me.

**There is an optional coverages that I recommend for Condo Unit Owners:

1. Loss Assessment.   Pays for assessments that result from a loss that the Association suffers that would have been covered under your policy's coverage.  It is an inexpensive coverage but if the Association under insures something it could come in handy.  Because the assessment is divided by the unit owners, the number of units in the association affects how much you purchase.  The smaller the number of units the greater the assessment.  

Ben,

Rates vary depending on the type of project, materials, ground up vs. renovation, fire protection of the community, etc.  The Builders Risk policy premium also is directly affected by the limit of the policy (how much it is costing to build the structure).

 Are you getting quotes on just the Builders Risk or are you also getting Liability for the project.   Can you give me some more info and I may be able to tell you how those numbers compare.

**some Builders Risk policies are paid in full and others offer prorated cancellation if the project finishes (gets Certificate of occupany). 

John,

As an Agent, we use estimating programs to figure how much insurance is needed for the "Replacement Cost" (cost to rebuild).  Many the the Insurance Companies we represent have their own program or customize programs from a couple of providers.  They take into account factors such as type of construction (wood, brick, metal, etc), square footage, number of stories, number of bathrooms & kitchens, level of finish (basic, custom, etc.) ....  Using that info they come up with a figure.  The various companies systems do not always agree on an amount.   I would suggest checking with several agencies that represent multiple markets to get some idea.  

If you are not sure of the accuracy the limit suggested, a good idea is to purchase insurance from a company that will give coverage that will pay even if the Replacement cost is exceeded.   Some companies will cap the extra coverage to 25% over the limit or 50% over.  There are a few that offer Guaranteed Replacement cost. 

Another way to figure it is to get an estimate from a Builder for what they would charge to rebuild your structure.

**one last thing to think about is, if you have a total loss, will you be able to rebuild the same way or have building codes changed.  If the codes have changed, you may have to spend more to rebuild with upgraded features.  Most companies offer an endorsement called "Building Ordinance & Law" or something similar.   It allows you to specify an additional percentage of the limit to pay for these changes/upgrades. 

Hope this helps.  Let me know if you have any additional questions about this. 

Robert,

The 2 means of egress often a question on the application.  If not, you need to ask the agent if it is a problem in the Insurance Company's Underwriting Guidelines.  Those are filed with the State Insurance department.  The reason that is relevant is, many companies will inspect the building after they write it.   If they have a guideline that says the building has to have 2 means of egress they will probably issue a cancellation.

Deanna,

You should shop around.  Most Standard policies cover water damage due to the bursting pipe due to freezing if they are at "Special" (aka "all-risk") Form.   There are coverage forms that include less coverage; Basic (Fire, lightning, & removal), Fire & Extended coverage (adds: wind, Riot, Civil Commotion, Smoke, Hail, Aircraft/Vehicle, Explosion), to the Extended coverage is often added Vandalism & Malicious Mischief (VMM).  These lesser forms normally not cover the Water Damage.   Some companies have their own versions of the standard forms that may include the coverage. 

If the pipe they are talking about is outside the house (ie. the incoming water line underground) the policy normally excludes that.   For the outside water pipe you can sometimes purchase coverage through the water company. 

Winn and Kaitlin,

You may want to consider shopping all three properties at once.  We are a national broker with 30+ markets.  Many of our personal lines markets will only write the Dwelling Fire Policies if they write the Homeowners as well.   They will have tougher guidelines but often will have better rates if it qualifies.

If you plan on doing any flipping or if you buy properties that will need renovation, you may want to make sure the new agent can help with Builders Risk and General Liability in case you need those later. 

Lastly, in case you need to change the Umbrella policy, there are a couple of markets for personal umbrella that do not require you write the underlying policies with them.  One market, can do up to 40 units of rental (condo units, 1-4 family, apartment bldgs., etc.). 

Please let me know if you have any questions. 

John.

Glad it had a Happy Ending