All Forum Posts by: Mark Ford

@Christian E Ray

With a dozen properties, we often help investors by writing a scheduled policy. It's a little easier to manage for you as the investor and can save some overall costs. Let me know if you need more advice. I'd be happy to talk you through what to seek, even via phone. Feel free to pm me if you want.

@Joe Koppel I believe the blanket you are referring to is officially a scheduled policy. Multiple rental properties can be added to a scheduled policy or be "scheduled" on the same policy. We do that for our clients all the time. The advantage is merely to have the properties together for ease of billing and management. Some insurance carriers maintain separate policies but bill together. Others will create the single policy with multiple dwellings.

As many have mentioned, you can also have an umbrella policy that covers your properties with higher liability limits and protects you more than the typical $500K limits. But don't forget to talk to your lawyer to get your properties in a corporate structure such as an LLC at the minimum to help as well.

@Junior Soares I'm aware of several carriers that can help you in Texas and have multiple carrier contacts. PM if you need more information and contacts in Texas.

Hi Jim.  To answer your liability question, I would go for $500K in liability to start.  You can always add an umbrella to bring it up if you'd like.  As for the replacement cost, I'd use a solid and reputable independent agent.  Here's the key though.  A good agent will research your property and then ask you some very specific questions about your home in order to formulate that replacement cost.  With the correct information, the replacement cost is not too difficult to compute and can go a long way towards guiding you in the purchase of your policy.  Please be cautious as there are many DP1 policies out there that are just for ACV or actual cash value.  Those policies typically do not cover the replacement cost of the home and base the settlement upon the market value.  That's not always a deal breaker, but you should know what you're buying.  There are also functional replacement cost policies that will rebuild the property only to functional standards.  If you want a replacement cost policy like you'd expect for your own home, you'll want to use a DP3 policy as long as the property is in good shape.  Hope that helps you!

In Tennessee, we've had luck with several companies for vacation rentals - in case that's where you are needing the coverage.  I'd say Foremost is the best - that's our favorite for vacation rentals.  That said, there are other companies to consider.  If the property is in great shape, I'd lean towards a DP3 policy rather than a DP1. Feel free to PM if you need more advice.

I'd follow up with my agent.  For situations like this, the best course of action is for your agent to keep on top of the insurance company.  You should be able to quickly rewrite the property if necessary.  I wouldn't worry too much, but I would make sure the property stays insured.  Just in case, ask your agent to have an alternative policy ready to issue if the policy cancels.  In other words, try to avoid having a lapse in coverage.  We always strive to keep clients insured even if the carrier drops their coverage.  You should be given a date for the cancellation so that you can make sure a new policy kicks in the minute the other policy ends.  Also, most dwelling policies don't require that your prior policy be in place for more than a year.  That will help in case your current policy isn't that old.

You're absolutely right.  There are many companies for annual rentals or 6-month rentals, but many insurance companies will deny claims on your short-term rentals or vacation stays.  That said, you certainly can get a policy for short-term rentals that covers your needs.  Dwelling policies are your best bet, but you'll want to focus on the companies that provide that coverage.  Dwelling policies are inherently designed for you to be profiting from the rental of your home.  The key is to purchase a policy from a carrier that is the best fit for your property.

There are several specialty companies you can use in Texas.  Many will write a short-term rental risk.  Depending on the situation, some will be much less expensive than others.  In our experience, the key is going to be to use an independent agent.  If you're interested, I know of several companies that would write your property and can point you in the proper direction.  Feel free to PM me if you'd like more advice.