All Forum Posts by: Michael Norris

If you have not joined already you should absolutely get to the monthly Greater Cleveland REIA meetings - there is one tomorrow night but unfortunately I won't be able to make it this month. I've always said that whatever challenge an investor has the answer to that problem is almost always in that room > somebody has already had that issue or knows someone who can help and it's a great group for that.

Membership is basically free - it's something like $160 a year maybe less.

I'm not sure I can post the link to BP but I'll try ...

https://www.greaterclevelandreia.com/

You might as well jump to getting a quote vs jumping thru the hoops with an engineer report. The engineer is going to tell you it's messed up but you already know that. The vendor who will do the work (and warranty it) is going to tell you what it really costs and what your real world options are

Most landlord policies won't cover damage from the tenant - talk to your agent about that. Most likely the best course of action is fix your place and get it back on the market. 

Find an independent agent or Farmers agent who can access Tapco, USLI, Foremost, and Aegis for you - any of those carriers should work. For a total gut you probably want Tapco's builders risk policy

Try Neal Wolf & Jimmy Markowitz at NCCG (440) 364-9954

Assuming the properties are in California based on your post (San Diego) finding insurance may be a challenge as multiple carriers have stopped accepting any new business there. Your Farmers agent should have access to a company called Aegis who should accept the multifamily property used as a short term rental. (Your state may be different)

She can access to Aegis thru Kraft Lake (tell her that) but may not be aware of the option or has not used them yet and is offering you a policy from a carrier she does have experience with.

Previously Foremost would have been a great option but as of October 2022 they stopped accepting new business on multifamily properties. 

For anyone reading this... The insurance marketplace is a MESS right now so if you have coverage - make sure you pay on time and if you think about filing a claim make sure it's worth it as most of the carriers I'm working with have new rules in place not to accept ANY new policies from a client with any paid losses in the last 3 years. 

Yes that's right - you could have 20 properties insured with a carrier for multiple years with no losses and then have 1 paid claim (even a small one) then find out when you go to buy an additional property they won't accept it.

Check on your insurance friends they are not ok at the moment lol. 

One other carrier not mentioned is Aegis. Property & Casualty carriers are on a big tsunami of being unprofitable right now so they are ratcheting up underwriting requirements like I have ever seen it in the last 15 years. Some carriers have stopped accepting new business all together others have started to limit the types or age of properties they insure.

The other thing they are doing is blocking any new business if you have a claim in the last 3 or 5 years. Example - you have 30 properties with a company and have a claim, even a small one.

Then you go but another property they will not accept the new property from you until the claim drops off the 3 year mark.

Ridiculous? Yes - but that is starting to be very common.

Don't make small claims! 

And make sure you don't lapse a policy for missing a payment the carriers are starting to be very unforgiving on re-instating policies that cancel for non-pay and some may even decline to issue a replacement or new policy if you have a cancel for non-pay.

You're not responsible from an insurance perspective. But... do you want to have a forever beef with this neighbor?

Do you have a roofer that can do a basic repair to keep the peace?

If they are ok with that have them sign some kind of release to have it done.

Also - if that tree is that big chances are more damage will occur in the future so maybe start budgeting to have it brought down.

Trees that close to a home degrade the roof, cause moss to grow, roots push on your foundation walls, and can be a vector for bugs and critters to get on your roof and try and get in your attic. 

Call an independent agent near that city and let them know your situation. You will probably end up with one of two policy situations.

A owner/occupied homeowners policy endorsed for the multifamily dwelling - I have no clue what New Jersey offers but there are carriers in Ohio that will do this depending on how you title the property.

A landlord policy for all risks associated with the dwelling plus a renters policy for your self to cover your personal property and personal liability. 

The 20 year old boiler could affect your rates or ability to get a policy with some carriers but it's not a big deal for others. 

A good agent will walk you thru all this stuff

We are very much in a hard insurance market - a huge number of insurance companies are unprofitable and taking aggressive rate action as well as tightening up underwriting requirements on all new business.

Obviously you shopped and were able to find some savings. Make sure to look at the coverage on those policies vs what you had. Also verify how your lender requires the policy be set up as one of the companies you named will not write the policy in the LLC name - it has to be in your name personally and the LLC is named as additional insured. That is not a big deal by itself but some mortgage co's demand the LLC be primary on the policy. You don't want to jump thru the hoops of switching carriers to find out your lender has a beef with the way the policy is written.

You could speak with the Erie agent and have the reconstruction cost calculations looked at to make sure the properties are not over valued.

You could also look at taking a higher deductible to pick up some savings.