All Forum Posts by: John Schaeffer
John Schaeffer has started 1 posts and replied 68 times.
Quote from @Kyle Sosnowski:
Quote from @Ray Hage:
Quote from @Wilson Feliciano:
So I came across a property that seems to be price within my budget but it's in a flood zone. What are some of the things I should be looking/asking about when acquiring such property ?
If it makes you feel better, I bought my house which is in a flood zone in Florida (most of my county is in a flood zone so whatever haha). Not saying I recommend it, but know the risks before going in. The most important thing to check is where it is in relation to other houses (meaning is it the lowest house on the block), is it on a slope, etc.
Also if you have time, go to the house during/after a very heavy rainstorm and check out the flooding....You can easily get a quote for the flood insurance cost. The downside, your insurance might be 600 this year and 1200 next year so just make sure you are getting a good house for the money because the costs could go up significantly.
Hi Ray, loved this reply.
Questions for you, when it comes to speaking with an agent about a flood policy..
1. I am not familiar with these types of policies as I am a beginner, and I will be sure to speak with an agent when the time comes. But, when we are talking about "flood insurance", is this typically one policy that you are paying for, or does this include others like "fire" or "hurricane" insurance? Or are these all separate and different policies?
2. How common is it for people to "bundle" policies for there rentals with personal poicies like auto, etc? And would you recommend this to begin with?
Thank you so much for any wisdom,
God bless.
Hey Kyle, I wanted to answer some of your questions.
1. Flood insurance is a separate policy that you purchase and they sometimes come with a 14 day waiting period or a 30 day waiting period depending on the carrier. The other "insurances" you're asking of is typically covered in a standard HO-3/5/6/8 policy. Pay attention to the deductibles for the policy as you may have a $1,000 deductible for claims but if a loss occurs due to a "named" storm (hurricane) your deductible may be a percentage of your dwelling which will dramatically increase your out of pocket expense for a claim.
2. Bundling is typically the most cost effective way to get insurance however it doesn't ALWAYS work out where you get the best rates by bundling with the same carrier. I do recommend speaking with a broker that can shop your coverages with multiple carriers so you'd have one point of contact for your properties vs 4 carriers or agents that represent each line of insurance.
Good luck to you!
Quote from @Brandon Victor:
Quote from @Andrew Freed:
@Account Closed - Yes, insurance is expected to rise 20-40% this year as a result of the increase in claims that they have been paying out the past few years. This is due to the extremely weather conditions across the US. It rised on one of my multifamilies from 4500 to 5700. One thing you can do is request that your deductible is increased. If you don't plan on filing a claim unless its at least 5k, why pay a premium for a smaller deductible? I did that and it saved me hundreds annually on a few different policies.
⭐️Fun Fact - ADT gives new homeowners a certificate of up to 20% off insurance premiums every year also 👍🏽
ADT will give the client the 20%? That's pretty impressive. Is it only offered in select states?
Quote from @Lisa Albright:
I hope this makes sense, we have a second home, we have our space upstairs(not rented) and made the basement into a studio STR.
We do have an excellent Insurance company for full coverage on the home but they will not write an endorsement for a STR. My question is that: will an insurance company write a policy on just the studio part of the home and we keep our current policy on the entire home? So essentially having two policies on the one home. Thanks for any advice in advance.
I'm going to go with 99.4% no. You're going to have to find a carrier that will do an endorsement for the STR with the homeowner policy.
Post: How to build relationships
- Posts 74
- Votes 26
It really comes down to talking to anyone and everyone as you never know what a connection could bring. Try going to as many as possible and talk to as many people as possible, remember you're there to WORK and build your COI.
I genuinely try to talk to someone for 15-20 minutes at an event and move onto the next. Work on your elevator pitch and don't come across as salesy. I try SO hard to stay away from the mental health coaches as they do serve a purpose but they're trying to sell you at THAT specific moment.
For example in my field generally NO ONE wants to talk to us but we're a pretty important cog in the process. When I go to an event I genuinely go to hang out and meet people. If they ask what I do I tell them but I don't expand on it as insurance is sometimes a dirty word in people's mind and if they ask for more info I'll tell them but I'm more interested in what THEY do.
Hope this helps.
Post: New Intro! Northern New Jersey
- Posts 74
- Votes 26
Quote from @Earl White:
Wecome to the NJ Real Estate Community!
@Ryan Muska - you left attorney off the list : )
He ALSO left insurance off his list!
Post: Seeking Referral for Property Insurance for 3-Family House Investment in Newark, NJ
- Posts 74
- Votes 26
Quote from @Ryan Muska:
Thanks for the recommendation Ryan!
Carlos,
Lender placed insurance usually isn't very good and extremely overpriced. I'd be happy to assist you in understanding your options available to you. I work for a brokerage and can look at multiple options for you. Send me a DM and we can start as soon as you're ready.
Good luck to you!
Post: Excited about new Real Estate ventures
- Posts 74
- Votes 26
Welcome!
I'm an insurance broker in NJ and would love to assist in anyway I can. Looking forward to connecting with you!
Post: Calling on Quadplex Investors, Who is Your Property Insurance Carrier?
- Posts 74
- Votes 26
Hey Yonia,
There are carriers who will be able to do so however you might have better luck placing it with a commercial lines policy instead of a personal lines policy.
If it is indeed owner occupied then it will be easier to place. Let me know if I can help or you'd like to speak on it further.
Quote from @Rodney Sums:
Quote from @Mike Parker:
Good morning,
Bill, John and Bo. Thank you all so much for the knowledge and advice. It is much appreciated.
co-sign what @Joseph Coleman and
If you finance a property as an investment, the lender will insist on that type of coverage to close. If you convert a primary to a rental, then make sure you have that coverage. In my experience, it's always been a coverage that came standard with the landlord policy.
Yes, if you do end up converting a primary home to a rental property the insurance carrier must be notified of the change as it's a completely different policy with different coverages.
It's not a difficult change to do but if you don't make the change and a loss was to happen a claim could be denied.