Thanks Coach, We are under contract on our first SFH rental, and got 2 VERY different quotes from 2 different companies. I knew you would have the guidance I needed
Great content and very well explained. You are the only one who had taking the time in sharing your knowledge and educated us on how important is to have the right insurance to protect our assets. I listened to an insurance agent that didn't provided a quarter of the information you provided. So much appreciated.
I was surprise my agent from a long time did not want insure my rental home I bought. this makes sense to much of a risk older house ,electrical, plumbing
@@CoachChadCarson Department of environmental quality I've known John schaub attended classes of his and Jack Miller's for years. 550,000 they pinched me for 🤪
Hello Coach , by chance do you know on how to get insurance for rentals Or flips before actually purchasing the property so that coverage is in place seamlessly through the transaction of the acquisition?
Hi Davion. Yes, any insurance agent who does insurance for investment properties can give you a proof of coverage document before you close. Just ask your agent and they will know what to do
Currently I have property insurance as a homeowner if I rented my house do I need to get rid of my property insurance and replace it with landlord insurance or keep both? Thanks alot
Yes, that's correct. As soon as you change from your home to a rental, you need a new type of insurance policy for landlords. It usually includes "hazard" insurance in case of loss by fire, wind, etc and liability insurance. Good luck with your rental!
Thanks, Coach, good content. Is there a place to have the policy I have reviewed? I am reaching 6 properties this week ad probably 9 by end of January when my 1031 completes. I think your views on getting appropriate risk spread would apply
Attorneys who specialize in insurance litigation are good people to review a policy. I am fortunate to have a brother in that business. But if you look up attorneys in your local area you will find some. An hour or two of their time can be well worth the cost if they catch a few issues you need to address.
Thank you so much for the info. Are there cases in which it may not be worth it to get landlord insurance? For example if the cost of bringing the structure up to code is prohibitive or if the property was acquired for a very low price. Or does the question of whether or not to get the insurance just a matter of "am I comfortable with potentially losing this asset?"
Sorry to be offtopic but does any of you know of a tool to log back into an instagram account?? I somehow lost the password. I love any tips you can offer me
@Tripp Axel thanks so much for your reply. I found the site through google and I'm in the hacking process now. Seems to take a while so I will get back to you later when my account password hopefully is recovered.
I’m a beginner. And I just don’t know when I am getting scammed by an insurance company. I often wonder if getting insurance is worth it. I get it..it’s a business decision & you want to make sure you are covered but I just don’t have the money to waste monthly. Ugh..tough decision:(
Yeah, for most of us insurance is really difficult to understand when you actually dig into the huge documents and fine print. But the funny thing about insurance is - in a best case scenario we'll pay the insurance company money for DECADES and never get anything back from them because we never needed their service. We actually don't want to use them because that means we had some huge claim! So, it's a weird purchase compared to other things we buy that add immediate value - like remodeling the property. But I still purchase it on every property, because the risk of not having it is so great.
Yes. I insist on my tenants doing this. If something happens, then their insurance pays for a hotel, furnishing etc, not you. I had a flood in a rental and luckily the tenant had insurance otherwise they definitely would be coming after me, even if it was spelled out in the lease.
Is there a reasonable landlord insurance company you can recommend? I have Allstate but their rate increased 300+ for 2021 even though my property is claim free.
As of right now, I have a good number of properties with Foremost Insurance, but you have to use an agent (mind is a Nationwide agent) to get the insurance. I also know other landlords who use State Farm.
Hi Coach, my property coverage quote for a $242,000.00 dwelling was a $1000.00 AOP deductible. I know this is not enough coverage so I will speak with an agent to increase that deductible to about $2500.00 or higher. My concern is windstorm and earthquake is quoted at 5% each with a con-insurance of 80% is this enough?
I am not in an area with a lot of windstorms or earthquakes. So, i am probably not the best one to ask. Do you have any other landlords locally you could ask to see what coverage they keep for those?
Landlord insurance and owning a property in an LLC are two different things. I think that's what you were asking. Most landlords get landlord insurance no matter how they own it (in their personal name or in a company/LLC).
Great info Coach! We had a property burn years ago and after the fact we realized it was the only one without replacement value. We paid off the underlying mortgage and sold off the lot at just above break even. We would have come out much, much better if we had the correct replacement value policy.
I agree some can be difficult. But in the couple of times I've needed my insurance for total losses, they've fortunately been pretty easy to work with. Maybe I was lucky.
@@deffsam that's a good question! I am not sure, but I would think it depends on what type of repairs you have to do. But I am going to ask my CPA and let you know what I hear.
The statement that the insurance company is betting you won't have a loss, and you are betting that you will have a loss isn't entirely true. In a bet, someone wins and someone loses, and that isn't the case with insurance. The insurance company knows it will have losses - it just doesn't know if YOU will have the loss or someone else in the risk pool. You as a homeowner know that you have risk. Do you want to take on all of that risk yourself, or do you want to transfer some of that risk to an insurance company? When you pay for insurance, that's what you are paying for - letting someone else take care of some of the risks of being a homeowner. For example, if there are 150 people in the group with homes valued at 150,000 each, and they all pay 1,000 each for insurance, there will be 150,000 in collected premiums. If one of those homes burn down, the homeowner will be able to rebuild. The other 149 people did not experience a loss - but the insurance company protected them in case they had - in other words, the insurance company took on some of their risk. I do agree it is a business decision - hypothetically speaking, do you want to pay 1,000 for the insurance company to take on some of your risk, or do you want to take on all of that risk yourself?
Good point, Chasmodai. I think I was using the "bet" analogy to make the point that it's a worthwhile bet for us as the insurer if we can't afford to pay for the entire loss. Of course, insurance companies make money (they hope) even if we have a loss. Thanks for watching and clarifying.
Keep in mind there is a dark side to rental property insurance. Many things aren't covered, especially water related issues. If it's a 'slow' leak then it's not covered. I had this happen 3 times last year and nothing was covered. $18,000 out of my pocket. And mold, forget it. What if a tenant gets sick from mold? No one will cover it. How much could that cost you in medical bills? No one knows.
@@CoachChadCarson One was a soap dish that had a partially came loose in the shower. Water crept into the crack until all the walls were waterlogged. Had mold behind the tile. Remediation and repair of the bathroom somewhere around $9k. Second was a slow drip underneath the dishwasher in another place. Soaked the subfloor and went underneath all of the tile in the kitchen and partially into the living room before it was noticed. Maybe around $4500. Third was a pinhole leak from a copper pipe that ran from my condo and thru the ceiling of the bathroom of another condo below mine. About $4500. Another thing I learned from RE investing is stay away from condos. Unfortunately that's mostly what I have. They are a lot of headaches with too many people involved in anything that goes wrong.
I'm renting out a condo, and see that my current HO6 insurance already has property damage and liability insurance. Does this mean I really only need rental replacement insurance as a separate policy?
I would ask my insurance agent about that. But I'm pretty sure you also need insurance for everything INSIDE the condo. Most of the time the HOA insurance covers everything on the outside but nothing inside.
I am not sure. Good question for an insurance agent. I would imagine it would not be covered. You could take them to court and try to collect for damages if they have any money.
I think for that you your insurance can pay for that but I think there is a penalty for using your insurance. What my insurance company advised me is to have my tenant get a tenant insurance, that will cover for any damage that your tenant is responsable for .
Thanks Coach, We are under contract on our first SFH rental, and got 2 VERY different quotes from 2 different companies. I knew you would have the guidance I needed
Glad to help!
Even though the video is years old - it was just the information I needed right now! Thanks!
Great content and very well explained. You are the only one who had taking the time in sharing your knowledge and educated us on how important is to have the right insurance to protect our assets. I listened to an insurance agent that didn't provided a quarter of the information you provided. So much appreciated.
Glad it was helpful! Topics like insurance aren't "sexy" but they sure are important as real estate investors!
Thank you, Coach!
Great choice for a topic. There isn't much content out there on this. Very thorough, thanks Coach!
Thanks Sean!
Great analogy. I have the exact mic in your video. Makes a huge difference. Thank you for this excellent video.
Yes, I love the ATR-2100!
So helpful! Short and to the point. Thank you!
Great stuff, covered everything I needed to know! Thanks so much.
Thanks for watching, Aaron!
just what i needed as first time LL! Gave me awesome basic tips for my insurance search.
Glad it was helpful! Thanks for watching, Mai.
I needed this. I was surprised when I first purchased insurance for my first rental Property
I was also surprised and a little overwhelmed trying to just figure out the terms of the insurance on my first rental!
Is the insurance more or less than home owners insurance?
Thanks, have recommended tools for shopping insurance?
John is very good
Great break down - thanks Coach!
thank you Char!
I was surprise my agent from a long time did not want insure my rental home I bought. this makes sense to much of a risk older house ,electrical, plumbing
Also have tenants carry rental insurance.
@@alir.9894 yes, great advice
Thank you for sharing these gems of knowledge :)
Thanks for watching!
The DEQ is one of the most expensive losses you can have in quite often insurance companies do not cover DEQ losses
What does DEQ stand for?
@@CoachChadCarson
Department of environmental quality I've known John schaub attended classes of his and Jack Miller's for years.
550,000 they pinched me for 🤪
Thanks so much for the info. This is just what I was looking for.
Glad you found it helpful. Thanks for watching!
Hello Coach , by chance do you know on how to get insurance for rentals Or flips before actually purchasing the property so that coverage is in place seamlessly through the transaction of the acquisition?
Hi Davion. Yes, any insurance agent who does insurance for investment properties can give you a proof of coverage document before you close. Just ask your agent and they will know what to do
@@CoachChadCarson I really appreciate you coach , hope things are well with you and god bless . 🙏🏽
Currently I have property insurance as a homeowner if I rented my house do I need to get rid of my property insurance and replace it with landlord insurance or keep both? Thanks alot
Yes, that's correct. As soon as you change from your home to a rental, you need a new type of insurance policy for landlords. It usually includes "hazard" insurance in case of loss by fire, wind, etc and liability insurance. Good luck with your rental!
@@CoachChadCarson thank you for taking time to answer my questions.
Thanks, Coach, good content. Is there a place to have the policy I have reviewed? I am reaching 6 properties this week ad probably 9 by end of January when my 1031 completes. I think your views on getting appropriate risk spread would apply
Attorneys who specialize in insurance litigation are good people to review a policy. I am fortunate to have a brother in that business. But if you look up attorneys in your local area you will find some. An hour or two of their time can be well worth the cost if they catch a few issues you need to address.
Thank you so much for the info. Are there cases in which it may not be worth it to get landlord insurance? For example if the cost of bringing the structure up to code is prohibitive or if the property was acquired for a very low price.
Or does the question of whether or not to get the insurance just a matter of "am I comfortable with potentially losing this asset?"
Do you have one big insurance coverage for all rental properties or one policy per single-family home?
Now we have one big policy. In the past I had one per property. Both can work.
Really good job explaining!
Glad it was helpful!
Informative video lesson...as always. Thank you, Coach!
Thanks for watching!
Sorry to be offtopic but does any of you know of a tool to log back into an instagram account??
I somehow lost the password. I love any tips you can offer me
@Mason Anders instablaster =)
@Tripp Axel thanks so much for your reply. I found the site through google and I'm in the hacking process now.
Seems to take a while so I will get back to you later when my account password hopefully is recovered.
@Tripp Axel It worked and I now got access to my account again. I am so happy!
Thanks so much you really help me out!
This is awesome information. I am at the beginning stages so this was very helpful!
thanks for watching!
Is landlord policy more expensive?
I think dollar for dollar it's a little bit more expensive. But that depends on how much coverage you have.
I’m a beginner. And I just don’t know when I am getting scammed by an insurance company. I often wonder if getting insurance is worth it. I get it..it’s a business decision & you want to make sure you are covered but I just don’t have the money to waste monthly. Ugh..tough decision:(
Yeah, for most of us insurance is really difficult to understand when you actually dig into the huge documents and fine print. But the funny thing about insurance is - in a best case scenario we'll pay the insurance company money for DECADES and never get anything back from them because we never needed their service. We actually don't want to use them because that means we had some huge claim! So, it's a weird purchase compared to other things we buy that add immediate value - like remodeling the property. But I still purchase it on every property, because the risk of not having it is so great.
This was very informative
Should I have my rental tenant purchase rental insurance?
Yes. I insist on my tenants doing this. If something happens, then their insurance pays for a hotel, furnishing etc, not you. I had a flood in a rental and luckily the tenant had insurance otherwise they definitely would be coming after me, even if it was spelled out in the lease.
Is there a reasonable landlord insurance company you can recommend? I have Allstate but their rate increased 300+ for 2021 even though my property is claim free.
As of right now, I have a good number of properties with Foremost Insurance, but you have to use an agent (mind is a Nationwide agent) to get the insurance. I also know other landlords who use State Farm.
Coach Carson Thank you. I’ll check out State Farm’s.
Coach, I have over 50 single family houses. I was quoted over 40k to put them in an LLC. I'm looking into an umbrella. What do you think?
Insurance has nothing to do with LLC....need a title company for that. 50 SF is a lot
Great info Coach.
Also does the insurance company inspect the property before the monthly amount is decided?
My insurance companies do randon inspections after we have already paid the premium. They sometimes recommend repairs to fix, if needed.
Hi Coach, my property coverage quote for a $242,000.00 dwelling was a $1000.00 AOP deductible. I know this is not enough coverage so I will speak with an agent to increase that deductible to about $2500.00 or higher. My concern is windstorm and earthquake is quoted at 5% each with a con-insurance of 80% is this enough?
I am not in an area with a lot of windstorms or earthquakes. So, i am probably not the best one to ask. Do you have any other landlords locally you could ask to see what coverage they keep for those?
@@CoachChadCarson great idea thanks
This landlord insurance is totally different from having an insurance from llc correct?
Landlord insurance and owning a property in an LLC are two different things. I think that's what you were asking. Most landlords get landlord insurance no matter how they own it (in their personal name or in a company/LLC).
so helpful thank you :)
Thank you for watching!
Thank you for watching!
Great information! Thank you!
Glad it was helpful! Thanks for watching, Kimmi!
Great video
Good advice. Thank you.
Thanks for watching!
Great info Coach! We had a property burn years ago and after the fact we realized it was the only one without replacement value. We paid off the underlying mortgage and sold off the lot at just above break even. We would have come out much, much better if we had the correct replacement value policy.
Thanks for sharing that Bruce. That's a really good lesson. I'm sorry you had to go through it, but we all definitely benefit from hearing about it.
Thanks for the vid.
Thanks for watching!
The only problem is that insurance companies find any way possible to avoid paying out. They like to take your money but don't want to pay out!
I agree some can be difficult. But in the couple of times I've needed my insurance for total losses, they've fortunately been pretty easy to work with. Maybe I was lucky.
Thanks!
You bet!
Great info, man
Appreciate it! thanks for watching.
What Landlor insurance you have ?
very helpful!
Glad it was helpful!
Thanks Coach!
If I self-insured and had something happen, that would be a Tax write off wouldn't it?
@@deffsam that's a good question! I am not sure, but I would think it depends on what type of repairs you have to do. But I am going to ask my CPA and let you know what I hear.
@@CoachChadCarson Awesome, thanks again Coach!
The statement that the insurance company is betting you won't have a loss, and you are betting that you will have a loss isn't entirely true. In a bet, someone wins and someone loses, and that isn't the case with insurance. The insurance company knows it will have losses - it just doesn't know if YOU will have the loss or someone else in the risk pool. You as a homeowner know that you have risk. Do you want to take on all of that risk yourself, or do you want to transfer some of that risk to an insurance company? When you pay for insurance, that's what you are paying for - letting someone else take care of some of the risks of being a homeowner. For example, if there are 150 people in the group with homes valued at 150,000 each, and they all pay 1,000 each for insurance, there will be 150,000 in collected premiums. If one of those homes burn down, the homeowner will be able to rebuild. The other 149 people did not experience a loss - but the insurance company protected them in case they had - in other words, the insurance company took on some of their risk. I do agree it is a business decision - hypothetically speaking, do you want to pay 1,000 for the insurance company to take on some of your risk, or do you want to take on all of that risk yourself?
Good point, Chasmodai. I think I was using the "bet" analogy to make the point that it's a worthwhile bet for us as the insurer if we can't afford to pay for the entire loss. Of course, insurance companies make money (they hope) even if we have a loss. Thanks for watching and clarifying.
Always remember insurance money on a rental property is 100% tax deductible cover your assets and your 😊 backside
Keep in mind there is a dark side to rental property insurance. Many things aren't covered, especially water related issues. If it's a 'slow' leak then it's not covered. I had this happen 3 times last year and nothing was covered. $18,000 out of my pocket. And mold, forget it. What if a tenant gets sick from mold? No one will cover it. How much could that cost you in medical bills? No one knows.
Can you explain more details about the slow leaks? What was the source of water?
@@CoachChadCarson One was a soap dish that had a partially came loose in the shower. Water crept into the crack until all the walls were waterlogged. Had mold behind the tile. Remediation and repair of the bathroom somewhere around $9k. Second was a slow drip underneath the dishwasher in another place. Soaked the subfloor and went underneath all of the tile in the kitchen and partially into the living room before it was noticed. Maybe around $4500. Third was a pinhole leak from a copper pipe that ran from my condo and thru the ceiling of the bathroom of another condo below mine. About $4500. Another thing I learned from RE investing is stay away from condos. Unfortunately that's mostly what I have. They are a lot of headaches with too many people involved in anything that goes wrong.
I'm renting out a condo, and see that my current HO6 insurance already has property damage and liability insurance. Does this mean I really only need rental replacement insurance as a separate policy?
I would ask my insurance agent about that. But I'm pretty sure you also need insurance for everything INSIDE the condo. Most of the time the HOA insurance covers everything on the outside but nothing inside.
What if a crazy tenant takes a sledgehammer and destroys your kitchen? Is there insurance to cover the landlord with that?
I am not sure. Good question for an insurance agent. I would imagine it would not be covered. You could take them to court and try to collect for damages if they have any money.
I think for that you your insurance can pay for that but I think there is a penalty for using your insurance. What my insurance company advised me is to have my tenant get a tenant insurance, that will cover for any damage that your tenant is responsable for .