Insurance for Rental Property | TigerDroppings.com

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LSU0358
LSU Fan
Member since Jan 2005
5180 posts

Insurance for Rental Property



My wife and I are building a new house and will be renting our old house out, for a while at least.

As far as insurance on the property I'm renting out (~1550 sq foot home built in 2010), what type of insurance should I look at getting. Also, any ideas on the cost?



This post was edited on 2/6 at 2:05 pm



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OnTheBrink
Alabama Fan
TN
Member since Mar 2012
3742 posts

re: Insurance for Rental Property


I believe it is known as a fire policy and it will be a good bit more than your normal policy.





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PhillyTide
Alabama Fan
The One Who Knocks
Member since Oct 2011
226 posts

re: Insurance for Rental Property


You will want to add some liability insurance on it.

Talk to your agent and tell him what you are planning to do, it won't be much more than you are paying now.






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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
16019 posts

re: Insurance for Rental Property


One factor is how much coverage you want per the price of the house.

E.G. on one property,I have a hazard/liability/ rental policy on a SPECIAL FORM which covers quite a bit( fire, lightning, explosion,windstorm, hail, smoke, aircraft and vehicles, riots/ vandalism, sprinkler leakage, sinkhole, volcanic action, falling objects, snow/sleet, water damage, collapse,theft and risk of physical loss) and 6 months rent loss should it burn down.

Much cheaper than my homeowner's policy. It runs me annually about 600 where my homeowners policy is about 1500 annually.







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LSU0358
LSU Fan
Member since Jan 2005
5180 posts

re: Insurance for Rental Property


Thanks FB. Is that a DP-3 policy?





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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
16019 posts

re: Insurance for Rental Property


That is just off the top of my head i do not have papers in front of me but here are a few more tidbits that could help you.

1. Replacement Cost (RC) - if location is insured to at least $65/square foot. RC coverage allows partial loss claims to be settled ultimately without depreciation.

2. Actual Cash Value (ACV), if less than $65/square foot, but at least $45/square foot minimum. Actual Cash Value settles partial losses with depreciation. This may not be a detriment, depending on your risk tolerance and business model.

Then as i talked about above I chose SPECIAL FORM for better coverage along with ACTUAL CASH VALUE for one of my properties.

The Program can be written on a SPECIAL or a BASIC form ("all-risk", less standard exclusions, including, but not limited to Earthquake and Flood). There is some limited coverage for vandalism/theft (most carriers exclude these on vacant properties altogether). BASIC form limits coverage, but lowers your cost.

The actual TERM for my coverage is a Commercial Policy for dwelling and premises liability.









This post was edited on 2/6 at 2:44 pm


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slapahoe
LSU Fan
USA
Member since Sep 2009
3617 posts

re: Insurance for Rental Property


ETA

Read your post wrong. I'd look at DP-3
DP-3 covers Dwelling, Other Structures, Rental Value, and Additional Living Expenses on a Special form basis. In doing this though, you will not be covered on a liability standpoint.



This post was edited on 2/6 at 3:27 pm


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NOLAGreg
LSU Fan
New Orleans
Member since Jan 2008
2082 posts

re: Insurance for Rental Property


There are a few companies that offer a DWG3 policy with premises liability (ASI, SFIC, Americas) to name a few. Location will determine if they will write though.





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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12212 posts

re: Insurance for Rental Property


Get a d3 policy. Require your tenants to carry 300k liability or so as well.





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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
16019 posts

re: Insurance for Rental Property


quote:

and it will be a good bit more than your normal policy.



incorrect. at least for me.



This post was edited on 2/7 at 10:17 am


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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
16019 posts

re: Insurance for Rental Property


quote:

There are a few companies that offer a DWG3 policy with premises liability (ASI, SFIC, Americas) to name a few. Location will determine if they will write though.



company I use is NREI group



This post was edited on 2/7 at 10:17 am


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