Advice on Insur. Coverage
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Advice on Insur. Coverage (by Sharon [CT]) May 8, 2024 7:35 PM
       Advice on Insur. Coverage (by WMH [NC]) May 8, 2024 9:12 PM
       Advice on Insur. Coverage (by Robert J [CA]) May 8, 2024 11:39 PM
       Advice on Insur. Coverage (by Rick [IN]) May 9, 2024 6:02 AM
       Advice on Insur. Coverage (by Steve [MA]) May 9, 2024 7:00 AM
       Advice on Insur. Coverage (by zero [IN]) May 9, 2024 9:29 AM
       Advice on Insur. Coverage (by Rick [IN]) May 10, 2024 5:32 AM
       Advice on Insur. Coverage (by zero [IN]) May 10, 2024 10:01 AM

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Advice on Insur. Coverage (by Sharon [CT]) Posted on: May 8, 2024 7:35 PM

Here's how you might write a follow-up post:


**Subject:** Update and Advice Needed on Rental Property Insurance

Hello fellow landlords,

I'm reaching out for some advice and to update you on the insurance situation I shared previously. To recap, my property insurance lapsed due to an uncommunicated change in the mortgagee clause by my mortgage company. The missed payments led to a lapse, and the subsequent quotes I received for a new policy were significantly higher about $300 more per month.

Today, after discussing this with my mortgage company, they've decided to place the property under a lender-placed insurance policy. Surprisingly, this policy is actually cheaper than my previous one, though typically lender policies tend to be more expensive and less comprehensive.

The lender's policy covers just the dwelling, which means there's no liability coverage if, say, someone were to have an accident on the property. This got me thinking about the adequacy of just having dwelling coverage.

The property is held under an LLC, so I'm particularly concerned about protecting the business from liability risks. I'm curious to hear from this community:

- What type of coverage do you usually get for your rental properties?

- Do you rely on standard dwelling coverage, or do you enhance it with additional liability insurance?

- Any recommendations for insurers who offer comprehensive yet reasonably priced coverage suited to rental properties?

I appreciate all the help and suggestions I received last time and am looking forward to your insights on this new dilemma.

Thanks in advance!

Advice on Insur. Coverage (by WMH [NC]) Posted on: May 8, 2024 9:12 PM

We have Dwelling and separate Wind policies (required here, not include with Dwelling, like Flood) on each property, and a business liability policy covering them all. So we have one General Liability for each LLC and also Umbrella insurance on our own home and anything in our name.

Advice on Insur. Coverage (by Robert J [CA]) Posted on: May 8, 2024 11:39 PM

It's your fault for not marking down on a calendar when all insurance policy's are due, property taxes and you Spouse Birthday/anniversary. --47.155.xx.x

Advice on Insur. Coverage (by Rick [IN]) Posted on: May 9, 2024 6:02 AM

Don't buy any additional insurance as the odds are you will not need it.

Make sure your rental properties are up to code, borrow money to do this if you have to.

Pay attention to the tenants who would most likely make a claim about an accident and consider not extending their lease. --75.104.xx.xx

Advice on Insur. Coverage (by Steve [MA]) Posted on: May 9, 2024 7:00 AM

Unless you're really diligent about keeping the monies & follow the strict rules about properly maintaining this LLC as a separate entity, it won't be very hard for a lawyer to pierce the corporate protection veil.

I recommend that you verify that this new policy has loss of rent aka business disruption coverage. I've suffered the loss of rents due to properties being uninhabitable after a fire. I collected over $100K on a burnt out 6 unit property. Even after factoring in the total premiums that I paid for coverage on this property, I received back over 4 times what I paid for it.

Advice on Insur. Coverage (by zero [IN]) Posted on: May 9, 2024 9:29 AM

Rick, while I like the idea of not paying for additional coverage what happens when a tenant's adult child comes over, trips and makes a claim?

What about neighborhood kids running thru the yard?

I admit that I am overly cautious at times. --107.147.xx.xx

Advice on Insur. Coverage (by Rick [IN]) Posted on: May 10, 2024 5:32 AM


Let's logically follow this scenario.

The kid has to have a serious injury. Rare.

The "parent" of said kid would have to find out your the owner.

The "parent" will threaten "I'll sue if you don't give me "x" amount of cash. This is where self-control comes in, you reply that all the property has been inspected and is up to code. And nothing else!

The "parent" would have to consult a lawyer(shyster) and the lawyer(shyster) would have to be convinced that it is worth his time (money) to pursue this possible case.

The lawyer(shyster) notifies you that he may sue if your insurance company doesn't cough up "x" amount of cash.

You notify the lawyer (shyster) that you don't have any insurance and if the "parent" and him wish to make any money try to sue me. Then send the shyster the documents that your property is up to code.

Now the lawyer (shyster) knows there is no low-hanging fruit and will advised the "parent" of this. "Parent" knows that that don't have the money for this, that they will loose in court because the lawyer(shyster) they wish to hire will not do a good job.

By this time their little heathen's injury has healed up or is on the way of doing so, so they don't have a case and odds are they will never bother you again.

I have been self-insured for a number of years and have had one older individual try this stunt about ten years ago. Claimed to have tripped going up a flight of stairs due to a faulty handrail and now has, iirc a foot injury. Told the lying sob ok, meet me at McDonalds. I filmed the lying sob walking normally into McDonalds quite normally and sitting down. Told the lying sob I was trying to figure out my new phone which is why I have it in my hands. When I told the lying sob that I filmed him ambulating without hindrance with his gait -- which is medical yak-yak for walking normally, so which lawyer(shyster) of his should I send the video to and, oh, by the way, where is your medical documentation of this traumatic injury? Said lying sob walked briskly out and have not heard of him since


Advice on Insur. Coverage (by zero [IN]) Posted on: May 10, 2024 10:01 AM

Rick, I follow what you are saying.

Not sure I have the nerve to follow thru. Very interesting though and I will give it more thought.

Have not had an injury claim in the couple decades I have been doing this. Had one tenant get a lawyer who contacted me about the supposed injury (not my fault) but I did nothing. They tried to sue the city and the meter reader company but nothing came of it.

I admit that I worry too much at times. --107.147.xx.xx

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