All Forum Posts by: Owen Rosen

Which type of insurance do you guys recommend for a town house rental property? Landlord insurance or personal home insurance? I wont live there. Planning on renting per room.

Personal home insurance won't be an option unless you are also spending time at the property.

0 Votes

Baltimore, Maryland

Quote from @James Wise:

Quote from @Jessica Hollingsworth:

What all do I need to cover on insurance on my landlord policy?

I have a policy but I feel like it’s too much?

You should only consider making a claim if it's a total loss. Trying to make claims on small stuff will get you dropped from your current carrier and keep other carriers from insuring you.

This really doesn't make any sense. Let's say you insure a property for $350,000 replacement cost. If there's a kitchen fire that requires $150,000 to rebuild and remediate you're suggesting not filing a claim because it's not a total loss?

0 Votes

Jackson, Mississippi

Quote from @Bandu Khote:

Quote from @Owen Rosen:

Not necessarily. What are you adding the condo to? What carrier?

Thanks. I am buying insurance on the new condo by adding it to the list of three condos already insured with them.

You should definitely ask what he/she meant and if it's a suggestion or requirement based on the amount of properties.

0 Votes

Springfield, Massachusetts

Vandalism/malicious mischief is probably more important than the burglary coverage but this really is about your risk tolerance AND perhaps you should see if there are other policy options.

1 Vote

Akron, Ohio

Not necessarily. What are you adding the condo to? What carrier?

0 Votes

Springfield, Massachusetts

Quote from @Bob Stevens:

Quote from @Owen Rosen:

Quote from @Bob Stevens:

Quote from @Owen Rosen:

Quote from @Bob Stevens:

Quote from @Jessica Hollingsworth:

What all do I need to cover on insurance on my landlord policy?

I have a policy but I feel like it’s too much?

the cost of your investment that's it, of course basic liability You ins should not be more then 1k

Huh? Only insured what you paid? Insurance should not cost more than $1000? For what? For every property in every market? I don't think so.

YES only your investment, your not going to rebuild if total loss. Sorry for some reason I assumed you would be the 100k all in price, if so yes INS is 1kish,

What if your tenant has a kitchen fire and you need to rebuild/remediate? With actual cash value you'll get a depreciated claim payout and much of the expense might not be covered. Or are you just going to tear it down and move on?

Total losses are rare. My scenario isn't. I don't think your advice is suitable for many investors but everything is case by case and your one size fits all advice could lead to a lot of issues.

In 10 years doing about 500 deals in the Cleveland markets, we never had one claim. Also we only get ins for the total all in on the props, 75- 100k, its about 850 a year. If there is a fire in the kitchen sure insurance will cover. If its a total lose, get our money back and move on. Not going to rebuild.
ALL THE BEST

If you aren't insuring replacement cost, insurance probably won't cover it as you say.
Most properties are not 75-100k. Yours might be but that's uncommon overall.
If you've never had a claim that's great but it's not really relevant to the discussion.
Do you understand how partial losses work and what loss settlement provisions you have on your policies?
These are rhetorical questions but newer investors should speak with a trustworthy agent that has your back when making these decisions.

2 Votes

Jackson, Mississippi

Quote from @Bob Stevens:

Quote from @Owen Rosen:

Quote from @Bob Stevens:

Quote from @Jessica Hollingsworth:

What all do I need to cover on insurance on my landlord policy?

I have a policy but I feel like it’s too much?

the cost of your investment that's it, of course basic liability You ins should not be more then 1k

Huh? Only insured what you paid? Insurance should not cost more than $1000? For what? For every property in every market? I don't think so.

YES only your investment, your not going to rebuild if total loss. Sorry for some reason I assumed you would be the 100k all in price, if so yes INS is 1kish,

0 Votes

Jackson, Mississippi

Quote from @Bob Stevens:

Quote from @Jessica Hollingsworth:

What all do I need to cover on insurance on my landlord policy?

I have a policy but I feel like it’s too much?

the cost of your investment that's it, of course basic liability You ins should not be more then 1k

Huh? Only insured what you paid? Insurance should not cost more than $1000? For what? For every property in every market? I don't think so.

0 Votes

Jackson, Mississippi

Quote from @Jonathan Pflueger:

Many believe and advocate that filing a homeowners insurance claim will lead to higher rates, discouraging claims altogether. This subjective and heavily pushed idea seems driven by a real sense of fear. I mean, why pay for a service and not utilize it when you need it? Filing insurance claims is the cost of doing business in real estate and if you can’t afford a rate raise maybe the investment you own is not really a true investment…

What have been your experiences with this? At what cost threshold do you decide to file a claim? If you did file a claim was your insurance automatically raised astronomical amounts?

I have filed multiple claims across several properties and some have more than one claim (all within 1-2 years) and I have not had any rate adjustments. Is my experience normal?

1. Filing a claim will likely lead to a rate increase

2. This doesn't mean you should never file a claim or be fearful of doing so. It simply means you should make sure the incident is worth filing a claim over.

3. That threshold should be discussed on a per property and per individual basis with an agent that is trustworthy, knowledgeable, and has your back.

4. It's highly unlikely you can file multiple claims in a short period of time on the same property and not experience a rate increase in the current market. Most carriers would non-renew in this climate to take it a step further. Not a reason not to file a worthy claim but it is a reason to make sure the claim is worthy. If you have been filing multiple claims on properties and not taking rate increases or having other actions taken your experience is not normal in my opinion.

2 Votes

San Jose, California

Quote from @Rohan Thakker:

Hi - I have a second / vacation home in upstate New York which had an issue and is under maintenance for almost two months. I have a secondary residence home insurance on this house and getting claim back for the mitigation/repair work.

I have this house on Airbnb for short term rental. Can I claim a rental revenue loss for the two months on this house, considering I don't have a short term rental home insurance?

Also If I ask the adjuster the above question what's the risk that my broader home insurance claim would be rejected since I had this house on short term rental?

What are my options?

Are they aware you use the property as a short term rental? Do you have it endorsed on the policy?

0 Votes

All Forum Posts by: Owen Rosen

Owen Rosen has started 0 posts and replied 493 times.

Post: What types of insurance do yopu all recommend?

Post: What to Cover (rental)?

Post: Why my insurance agency asking me to get a commercial insurance

Post: Insurance Coverage on 4Plex (vandalism and theft)

Post: Why my insurance agency asking me to get a commercial insurance

Post: What to Cover (rental)?

Post: What to Cover (rental)?

Post: What to Cover (rental)?

Post: So Much Fear Around Insurance Claims: Is a rate raise automatic?

Post: Claiming Short Term Rental Revenue Loss on Secondary home insurance

Owen Rosen has started 0 posts and replied 493 times.

Rounded Star Post: What types of insurance do yopu all recommend?

Rounded Star Post: What to Cover (rental)?

Rounded Star Post: Why my insurance agency asking me to get a commercial insurance

Rounded Star Post: Insurance Coverage on 4Plex (vandalism and theft)

Rounded Star Post: Why my insurance agency asking me to get a commercial insurance

Rounded Star Post: What to Cover (rental)?

Rounded Star Post: What to Cover (rental)?

Rounded Star Post: What to Cover (rental)?

Rounded Star Post: So Much Fear Around Insurance Claims: Is a rate raise automatic?

Rounded Star Post: Claiming Short Term Rental Revenue Loss on Secondary home insurance

Post: What types of insurance do yopu all recommend?

Post: What to Cover (rental)?

Post: Why my insurance agency asking me to get a commercial insurance

Post: Insurance Coverage on 4Plex (vandalism and theft)

Post: Why my insurance agency asking me to get a commercial insurance

Post: What to Cover (rental)?

Post: What to Cover (rental)?

Post: What to Cover (rental)?

Post: So Much Fear Around Insurance Claims: Is a rate raise automatic?

Post: Claiming Short Term Rental Revenue Loss on Secondary home insurance