Do you have an individual insurance policy on each of your rentals or a commercial policy with all rental properties listed on the one policy? All my rentals are residential property financed with residential loans. However my insurance agent is telling me that instead of having a separate policy for each property it would be better coverage and more cost effective to have a single commercial policy with all rentals listed on the one policy. Does anyone have experience with this — pros and cons? Also wondering if the lender would have any issues with this, as I have residential loans and need to furnish proof of insurance each year. --107.77.xxx.xxx

I have never heard of multiple properties under one policy. --76.120.xx.xx

I just pulled all of my properties into a commercial/business insurance policy like this; however, I moved all of the properties into one commercial loan as well. I do end up saving money by having one commercial policy over multiple individual residential policies. I haven't come across any cons yet to this point. --174.82.xxx.xxx

My friend had his Home, Auto and Rentals with one company. He also let his sister-in-law borrow an extra vehicle weekly. The sister-in-law had a major accident and as a result, ALL of my friends rates went UP! Auto, Home and Some Rentals..... He had been getting a "Good Landlord" and "Good Driver" discounts. Not anymore.... --47.156.xx.xx

I have commercial insurance - not sure but I believe it's called a "master policy". I have a separate declaration page for each property. Billing is broken down per property. Coverage broken down per property. --72.70.xxx.xx

2 buildings in LLC with commercial loans on one insurance policy with 1 umbrella policy. Both buildings are listed with their values on the declaration page. --24.61.xxx.xx

I am in process of moving mine to commercial... I have switched 15 so far an went from would guess avg cost of 650 a year with 2500 ded per home to 4300 a year for 15 with same or better coverage on all homes with 1k ded.. My only draw back right now is umbrella for commercial is 1500 per year compared to about 400 for 3 million in personal... But she is looking into it since all my homes are in my personal name... Might have to have 2 umbrella or increase liability on each home from 1 mill to 3 mill... Still figuring it out --107.242.xxx.x

Mine are free an clear so dont no about loan part of it.. I like idea of all my rentals on 1 policy.. Will keep my primary an cars with 1 place...an 1 rental house at 2 other places just in case need to switch or anything --107.242.xxx.x

It's not right or wrong, but I run each building as a separate business. Co-mingling them wouldn't work for me. --76.120.xx.xx

JohnnyB would be interested to know if there is a significant cost savings. I have maxed out the number of policies with one of my carriers and going to 2nd carrier for the ones that the first carrier doesn't pick up is more $$$ --38.142.xxx.xxx

Thanks for the reply’s everyone; I appreciate the feedback. Lynn(MA) - I’m in a similar position as you. I currently have all my properties insured with one carrier that also has my primary homeowners policy. However, with a new purchase I now exceed the limit of individual policies they will write. So far I’ve received three quotes going the commercial policy route (some companies call it a business policy). It basically lists each property separately on one policy and also separately identifies the coverage and premium amount per property. Of the three quotes I’ve seen vs. the totality of all individual policies, one was lower, one was about the same, and one was way higher. The one that was way higher I’m not considering. But the coverage on the new policy quote that was lower and the one that was about the same is better coverage than I currently have. So considering pricing on the commercial quote is favorable, the coverage is better, I get the convenience of having one policy vs. many policies, and it solves my problem of maxing out on policies, I’m going to go the commercial route. Given your position it sounds like you may also be able to save money going the commercial policy route. It’s worth at least looking into. Also as an FYI for anyone else following, this type of policy was ok with my bank and residential loans because of the fact that each property is listed in the policy separately with its own identification of coverage and premium. This was a learning experience for me, hope this helps someone else. --24.147.xx.xxx

I have all of my rentals in a business policy. When I first switched the policies it was cost effective, now it is not. I am switching them back to normal policies at a savings of about $1000.00 per year per home. Once they have the policies the rates go up significantly every year- and I have newer builds. It covers me for more potential liabilities, but not really things I need. For example: it includes business practice insurance that would cover me if someone who worked for me showing apartments screwed up. I’m the only one who shows the apartments so it’s not insurance I need. --71.10.xxx.xxx

Johnny are you coming to the meeting Tuesday night? maybe we can catch up there or off-line. --38.142.xxx.xxx

Lynn - yes I’ll be at the meeting next week. Interestingly enough I think the speaker for this months meeting is an insurance agent. Have a good long weekend, see you on Tuesday. --24.147.xx.xxx

Lynn & Johnny B planning on seeing you both Tuesday evening. Maybe JKJ will be able to join us for some pizza & stimulating conversation. --96.237.xx.xx