All Forum Posts by: Zach Shull
Zach Shull has started 2 posts and replied 9 times.
Post: Insurance on a rental that's on my primary residence
- Posts 9
- Votes 4
Quote from @Jason Bott:
@Zach Shull some of the issues you cite sound specific to the insurance carrier you are currently working with. If you get some other quotes you will find different guidelines.
If you live in the main house as your primary residence, you need to insure this property with a Homeowners policy. A Homeowners policy can add Landlord Liability. You would not go out to find a second policy for the rental.
Awesome, thanks you Jason! Looks like USAA has said I do not need to add Landlord Liability. Does that sound "off" to you? Glad to know I don't need to take out a separate policy though.
Post: Insurance on a rental that's on my primary residence
- Posts 9
- Votes 4
Quote from @Chris Davidson:
@Zach Shull you homeowners should cover the guest house, but a umbrella might be good for additional coverage. You might need to add a Landlord clause to your policy. Get with a broker or your agent and see what you are covered for now, and what you actually need.
Also think about who is giving you advice. If the agent says you need a umbrella ask him why, and then why your current policy doesn't cover that. Umbrella's only pay out once the underling policy is tapped out.
Best of luck!
Thank you, Chris! I appreciate it. I've now got my main policy which will cover the house + guest house and I also tacked on an additional umbrella policy. My carrier mentioned that they will not need to add a landlord policy to cover the place. I'm a rookie at RE investing, and hoping I'm doing it right!
Post: Insurance on a rental that's on my primary residence
- Posts 9
- Votes 4
Quote from @John Mocker:
Zach,
As Jason Mentioned, the underwriting guidelines of the company providing your Insurance will determine what needs to be done. You should reveiw this with your agent to verify:
1. The application indicated the rental
2. That the proper Endorsements (if any are needed) have been added to the policy.
They will probably need to know if the unit was permitted with the city/town. If not, there may be issues with what the company will pay on a total loss (may not pay to replace the kitchen and other non-permitted improvements. Also, there could be an issue if the unpermitted unit is not allowed in the company's guidelines.
Thanks, John! I just got off the phone to confirm all this and it looks like everything is dialed.
Post: Insurance on a rental that's on my primary residence
- Posts 9
- Votes 4
Quote from @Esta Ryder:
I think that it is great that you are trying to make sure that you have all of the insurance coverage you need and that you are questioning what you have been told to make sure that you are fully covered. I would talk to multiple insurance companies in your area to see what they say- make sure that they are all telling you the same thing (as far as what coverage you need) and then get the policy from the company that you feel is the best company for you. Good luck!
Thanks, Esta! I appreciate all the help! I'm on it.
Quote from @Bill B.:
As stated. Simple change from homeowner’s insurance to landlord policy. Should be same price or cheaper as it doesn’t cover any personal items inside. If you have a substantial net worth consider 300/300 limits and an umbrella policy. You can also equine your tenants to get renters insurance. This will cover their property (which your insurance won’t) and any damage to your property they cause.
Great feedback! Appreciate it. I'm excited to continue the RE investment journey.
Quote from @Devin James:
Hey Zach Shull,
Yes you should let them know that you are no longer living there and that you have a tenant in place. They will be able to update your policy accordingly. Should be a simple process.
Ok, great! Thank you very much!
Great advice! Really appreciate that. Definitely will require rental insurance and I'll make sure I call to make those adjustments.
In this situation, I'm needing to relocate for a work situation. Do I need to let the lender know that I've changed my primary residence? I don't want my interest rate to go up.
The house has been my primary residence for almost a year and I've been renting out the guest house. I have the opportunity to move for a job now and I'm wondering, if this house is no longer my primary residence and I rent out the main house, how that will change from an insurance perspective. What's best practice in this situation? Do I need to change the policy stating that I'm no longer living there? Or do most people just leave it? Thank you!
Post: Insurance on a rental that's on my primary residence
- Posts 9
- Votes 4
I have a property with a main house and a guest house/studio that is attached with a separate entrance. The house is my primary residence. I was told that I needed to have a minimum of a $1M umbrella policy for the unit if I'm renting it out, in addition to my main homeowners insurance (the homeowners policy includes the guest house since it's all one building). But in the event something happens to the guest house, is there any additional insurance I should maintain? I was told I could only take out a separate policy if it was a completely separate building/parcel. Just trying to learn the whole insurance world! Thanks!