All Forum Posts by: John T.

Jeff, since you live in Frisco, TX, I assume that you property is in Texas.  See Texas Property Code Section 92.054.

Sec. 92.054. CASUALTY LOSS. (a) If a condition results from an insured casualty loss, such as fire, smoke, hail, explosion, or a similar cause, the period for repair does not begin until the landlord receives the insurance proceeds.
(b) If after a casualty loss the rental premises are as a practical matter totally unusable for residential purposes and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, either the landlord or the tenant may terminate the lease by giving written notice to the other any time before repairs are completed. If the lease is terminated, the tenant is entitled only to a pro rata refund of rent from the date the tenant moves out and to a refund of any security deposit otherwise required by law.
(c) If after a casualty loss the rental premises are partially unusable for residential purposes and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, the tenant is entitled to reduction in the rent in an amount proportionate to the extent the premises are unusable because of the casualty, but only on judgment of a county or district court. A landlord and tenant may agree otherwise in a written lease.

Also, check your Lease provisions.

@Hanna Minkin You should have a policy (or separate policies) of Landlord's insurance covering all of your rental property.

Also, my standard lease provides that it is mandatory for my tenants to maintain Renters Insurance during the term of the lease and any extensions thereof.  In addition to coverage that is helpful to my Tenants, I require their Renters Insurance to include $300,000 in liability coverage.

My tip is to renovate the property immediately upon acquisition.  This will give you several years of low maintenance.  Otherwise, renovations may become necessary at the most inopportune time.  Its Murphy's Law:  
"Anything that can go wrong will go wrong (often at the most inopportune time)".

It is not unusual for a Property Management company to request to be put on the insurance as an Additional Interest or an Interested Party.  The insurance company will give the PM notice of non-renewal of your insurance and notice if the limits of liability are lowered.  In case of an insured claim, the PM's name does not go on the insurance check.

What a waste of time!

In the last five months I have filed two house fire claims.  These are the only insurance claims I have filed in ten years.  I also fear that I may not be able to acquire any more Landlord's insurance.  I am seriously thinking about liquidating my rentals and investing elsewhere if I am denied Landlord's insurance.  

The link to your book doesn't work.

You may wish to consider going to an online rent collection system.  I use Rentec Direct.  Each tenant has an online portal on the Internet.  The tenant logs on and initiates an electronic funds transfer from their bank account to my bank account.  Funds clear within 6 or 7 days after the tenant initiates the transfer.  It has worked well for me for quite some time.

There are several companies that assist landlords in receiving rent by electronic funds transfer.  Just search BiggerPockets.  Find the one that works best for your.

If you want to be humane, then give them 90 days notice of rent increase.

I have multiple SFRs.  In my area, State Farm and Allstate (both good companies) will only insure 2 or 3 rentals.  I switched to American Modern Insurance and insured all of my SFRs on one commercial policy.  I saved a little money, but stopped getting multiple bills for insurance.