All Forum Posts by: Tommy Brown

Absolutely! The property manager should definitely be added. Property managers are potentially liable for almost everything that occurs on property they manage. They should require you to add them before ever performing any work on your behalf.

CA DOI License # 0K51144

You are paying to protect your investment in the property and your financial assets. This is a 4-unit property which involves significantly higher exposures to liability lawsuits by the nature of the business. Also, this must be a reasonably sized building and exposed to potential hail damage. Check with the agents about roof age since this is a decent factor, and consider a higher deductible ($5K+ if you are worried about cashflow).

It is far better to have a higher deductible than to skip out adequate financial protection from a large claim. Also, talk to your CPA about writing off a portion of the insurance premiums as a business expense.

@LIAM COUGHLIN

Hi Liam,

Insurance requirements and underwriting guidelines vary by state. You should find an insurance agent/broker in your state to talk about the specifics.

Important factors to consider included the name the property is title under (llc, trust, individual, etc) This particular portion will determine how you move forward.

Regards,

Tommy Brown

CA Insurance Lic # 0K51144

 Hi Jason,

Insurance rates are determined by individual characteristics, the underwriting company, and the rates filed with each state. If AAA will not write the umbrella liability insurance, than you could check with a broker who represents RLI, USLI, or personalumbrella(dot)com. Feel free to message me should you have any additional questions!

Regards,

Tommy Brown

CA DOI License # 0K51144

@Anna Ogo

A DF-6 (rented townhouse/condo) insurance policy would be necessary if the building is part of a community association and you as the owner do not own 100% of the building. If the building is part of a PUD (planned unit development) you would only need a standard SFR rental property policy (DF-3).

The CC&R's for the association should indicate whether or not an DF-6 policy is needed.

Tommy Brown

CA DOI License # 0K51144

@Alice Chan

I can do the umbrella insurance, but it might make more sense to ask your current insurance agent about the umbrella policy. It is usually pretty simple to add for the current agent, because it requires listing all of your properties, ATV's, boats, cars, etc on the umbrella policy. You should be able to gas we one umbrella policy going over all of your policies in Texas and the California property. Feel free to last me know if you have any questions!

@Quan Thai

I am an insurance professional in Northern California specializing in habitational and commercial property portfolios. If you have any questions about insurance in general or brokers, I would be happy to assist. Feel free message me if you would like any information.

Jason is absolutely correct. The "Named Insured" on the policy should absolutely be the same name as what is listed on the title. The "Named Insured" has the broadest coverage applicable in relation to the liability coverage. In the event of a lawsuit, the ownership entity would almost certainly be included. Your personal names should also be added as "Additional Insured" unless the are able to show through their policy forms that coverage for a trust applies to the individual trustee (not very likely).

Tommy Brown

CA DOI Lic #0K51144

There is a certain cost of doing business as a landlord, but nobody ever wants to feel the burden of that cost. You may need to buy yourself a new garage door and move on. If you are able to obtain any proof of who/what caused the damage (obvious paint transfers, neighbor's security camera, etc) you should be able to either demand payment against their auto insurance policy or deduct from their security deposit.

Unless you can prove their negligence, you do not have many options. Even deducting from their security deposit if they did not (or claim they did not) cause the damage would cause a headache later down the line.

@Fabiola F. 

Regarding the umbrella liability question, you should consult with your local insurance professional regarding the total value of your assets and what is able to be taken in a liability judgment in your state. Using this information, it is often a best practice to carry enough liability insurance (through homeowners, umbrella liability, and excess umbrella liability if needed) to protect you financially against the largest judgments.

Tommy Brown

CA DOI Lic #0K51144