Rental property haz ins (by Ron [NJ]) Jul 30, 2020 8:58 AM|
Rental property haz ins (by Robert,OntarioCanada [ON]) Jul 30, 2020 10:11 AM
Rental property haz ins (by Ron [NJ]) Jul 30, 2020 10:13 AM
Rental property haz ins (by MikeA [TX]) Jul 30, 2020 10:30 AM
Rental property haz ins (by Martin [ID]) Jul 30, 2020 10:30 AM
Rental property haz ins (by Steve [MA]) Jul 30, 2020 11:05 AM
Rental property haz ins (by 6x6 [TN]) Jul 30, 2020 12:07 PM
Rental property haz ins (by Robert J [CA]) Jul 30, 2020 12:14 PM
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Rental property haz ins (by Ron [NJ]) Posted on: Jul 30, 2020 8:58 AM
I wanted to know how much personal property coverage you have on an investment property you donít live in?
The dwelling coverage covers the building but not the appliances so I put $10k for that. I was just curious what others put.
Rental property haz ins (by Robert,OntarioCanada [ON]) Posted on: Jul 30, 2020 10:11 AM
In case of a fire or natural disaster the cost of rebuilding has to be considered. Labour, building materials along meeting new building codes will drive up the costs. Appliances used are not worth much where can buy used appliances. Usually insurance companies have a ball park of building a new building. If do not want to rebuild then can only sell land. If concrete block or poured construction there is less chance building we be completely destroyed in a fire or natural disaster. Wood frame construction is different. --147.194.xxx.xx
Rental property haz ins (by Ron [NJ]) Posted on: Jul 30, 2020 10:13 AM
My question was specifically how much personal property coverage do you carry on an investment property you donít live in. --173.63.xx.xx
Rental property haz ins (by MikeA [TX]) Posted on: Jul 30, 2020 10:30 AM
None. In fact I have a $5000 deductible on all my units. My reasoning, I've been doing this for over 30 years and have yet to have a major loss. What I've saved on insurance has bought another SFH over the years.
Lets say you have a 7 year old refrigerator that is destroyed. New it costs $500 but it is half way through it's life so you will only get $250 from the insurance. How many years of stashing that premium away would it take to break even? (my calculation was less than 3 years). Even on things like roofs, you are going to get the depreciated value so I look at insurance as simply a measure to protect me against a major loss, just make sure you have an emergency fund to cover the difference.
Rental property haz ins (by Martin [ID]) Posted on: Jul 30, 2020 10:30 AM
Mine also has $10,000. It covers appliances, carpeting, things like that. There is not furniture or other typical property so having a higher coverage amount didn't make any sense. And it seems that there wasn't much of a premium difference between a $5000 and $10,000 limit. --65.129.xxx.xxx
Rental property haz ins (by Steve [MA]) Posted on: Jul 30, 2020 11:05 AM
I'm not sure what kind of coverage you have but my coverage includes liability, fire, loss of rents. During my LLing career, I've lost several properties to fire. Each time I collected on any refer, stove, water heater & boiler that of mine that were in the units. After the first fire, I learned about business disruption & added it to all my policies.
My deductibles range from $5K to $10K. --71.174.xxx.xx
Rental property haz ins (by 6x6 [TN]) Posted on: Jul 30, 2020 12:07 PM
Steve, why do you think that you had so many fires?
Is it because of the amount of properties you own?
Is it because of bad tenants? --73.120.xx.xxx
Rental property haz ins (by Robert J [CA]) Posted on: Jul 30, 2020 12:14 PM
Most of my policy's for rentals have a blanket amount coverage for "personal property". For single family homes I have around a 5% of the total coverage for personal property. On apartments, it's around $6,500 per unit.
I look at it this way: any appliance or personal property is going to be depreciated greatly after the 1st year of ownership. Second, there is always a delectable.
When a tenant was evicted, they moved out and stole the refrigerator, washer, dryer and microwave oven. The cost of the appliance when purchased new 3 years prior to being stolen was around $2,000. But 3 year old stuff was only valued at $500. Then you deduct the $1,000 deductible, then I'd get nothing anyways.
However, since I was only able to depreciate $900, I got to write off $1,100 from my income of the property for the balance of un-depreciated stolen stuff...it could also have been damaged item from a loss... --47.155.xx.xxx
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