All Forum Posts by: Owen Rosen

A few notes:

1. Texas is unique animal currently for insurance so offerings are different there than other states although that's always the case state by state

2. $2,500 deductible is pretty much the standard on any dwelling (home or rental) at this point and $5,000 isn't uncommon at all.  If you have a $30,000 loss (very common) I don't think a $2,500 difference is going to change whether or not you'll file a claim.  Also, many contractors will work with you on your deductible so you have less out of pocket.  As an insurance agent I'm not supposed to say the quiet part out loud but that's the reality of things.  It all depends on the size and type of claim of course.

3. I'm an independent agent (representing dozens of companies) including Steadily and would have no problem insuring my own property with them.  It's all about your own situation and risk tolerance.  No issues with @Costin I. deciding Steadily wasn't your best fit but you're painting with a very broad brush to say their insurance is only for total losses or that they're systematically over-insuring their properties to keep deductibles high.  That is not the case.

 Unfortunately, it's highly unlikely a standard home/rental policy will cover flood or landslide.  Flood or difference in conditions would almost certainly have to be purchased separately.  

Be careful asking questions as well meaning contact your actual agent if you have one rather than a claims center because the actual insurance company could record things as a loss even if they aren't paying a claim.

 That makes sense.  It's a state licensing issue most likely for the agent/agency.

In a better market you might be able to use those things to get a better deal on commercial insurance but in the current market there won't be flexibility.

On personal policies/1-4 unit rental dwelling policies there won't be any flexibility whatsoever unless it's something the company already has built into their guidelines/pricing.

The Minnesota agent should be able to write the policy BUT they might have guidelines on their rental dwelling policies that require the owner to be local and therefore looking after the property.  Do you have a property manager?

When was the Acord dated?  Is it signed?  Why don't you contact the agency and make sure the policy is still active?  The speakerphone thing shouldn't be necessary and it could easily be faked if you're really concerned.

It sounds a little shady but might be legit.

Quote from @Neil Fernandes:

Quote from @Owen Rosen:

What is giving you concern about the coverage/protection?

Do you have any existing insurance to compare it to or you've just been getting quotes on properties that you are considering purchasing?

Hard to answer what to look for without even knowing what you're trying to insure - there are a lot of types of rental properties.

Landlord and homeowners insurance is not the same though the types of coverage are similar.

I understand your point. I have attached quotes from two individuals for the same property. However, I am not entirely sure what criteria I should be looking for. I noticed that one individual is taking a higher replacement cost compared to the other. The property is under contract for approximately $155k, and the quotes are for a long-term rental duplex. My concern is that American Modern has a lot more terms compared to State Farm. So, does it mean that American Modern is better, or is it just smoke and mirrors? Thank you once again for any advice you can provide.

 An agent gave you each of those quotes.  Have you asked them?  They should be explaining their work and differences.  Ask questions, see who you think you're more comfortable with. 

We don't know anything about your property, you, your business, your risks, what you care about, etc.  Those things are crucial when developing a coverage plan.

A few general points:

1. Replacement cost has nothing to do with the price of the property.  How many square feet is it?  Do you want full replacement cost if you had a total loss - would you rebuild in that case or walk away?  You won't get the replacement cost if you plan to walk away.  

More importantly, do you want a partial loss to be covered to full replacement cost?

2. The State Farm quote has a higher deductible.  It certainly wouldn't make up a 50% premium difference but it's not a fair comparison in that regard.  Did the agents discuss deductible with you?

3. There should not be a $100,000 discrepancy in the dwelling coverage (based on a replacement cost estimate.). That's too much of a spread for a property of this size.  Someone is "wrong."

To one of your original questions just because American Modern has more line items it doesn't make it better.

 Homeowners insurance is going up too - not just non-owner occupied properties.  Not just because of hail.  Insurance has been going up everywhere including places where there isn't hail.

Texas is a very challenging insurance market though not as bad as a Florida or California...yet.

Is your Travelers policy with an independent agent?  Who are your other rentals with?  Different agencies or?  If you're with a broker now have they indicated they might have other options or do they not communicate with you?

What is giving you concern about the coverage/protection?

Do you have any existing insurance to compare it to or you've just been getting quotes on properties that you are considering purchasing?

Hard to answer what to look for without even knowing what you're trying to insure - there are a lot of types of rental properties.

Landlord and homeowners insurance is not the same though the types of coverage are similar.