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Insurance for Rental Property
Posted on 2/6/13 at 1:54 pm
Posted on 2/6/13 at 1:54 pm
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?
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 2/6/13 at 2:05 pm
Posted on 2/6/13 at 1:59 pm to LSU0358
I believe it is known as a fire policy and it will be a good bit more than your normal policy.
Posted on 2/6/13 at 2:18 pm to LSU0358
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.
Talk to your agent and tell him what you are planning to do, it won't be much more than you are paying now.
Posted on 2/6/13 at 2:21 pm to LSU0358
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.
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.
Posted on 2/6/13 at 2:28 pm to Fat Bastard
Thanks FB. Is that a DP-3 policy?
Posted on 2/6/13 at 2:39 pm to LSU0358
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.
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 2/6/13 at 2:44 pm
Posted on 2/6/13 at 3:23 pm to LSU0358
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.
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 2/6/13 at 3:27 pm
Posted on 2/6/13 at 9:10 pm to slapahoe
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.
Posted on 2/6/13 at 11:06 pm to LSU0358
Get a d3 policy. Require your tenants to carry 300k liability or so as well.
Posted on 2/7/13 at 10:11 am to OnTheBrink
quote:
and it will be a good bit more than your normal policy.
incorrect. at least for me.
This post was edited on 2/7/13 at 10:17 am
Posted on 2/7/13 at 10:12 am to Buck Dancer
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 2/7/13 at 10:17 am
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