Business Insurance coverage????

General Real Estate Investing
1

Hi,
my cpa says i need to buy some business coverage insurance for my corp.

Does anyone have experiance with this and can offer experianced advice?

Costs?
What coverages and types?
Good companines?

thanks,

2

Bill,

I would recommend a general liability policy. One million should be sufficient. Talk to your agent. He/she should be able to set something up and give you some quotes.

Wilson

3

I go $1 to $2 million. I negotiated a broad policy for my mobile home business with Westfield Insurance in Ohio. Just be sure to read the policy (even more boring than reading tax law), especially the exclusions!

John Hyre

4

Bill,
What does your corporation do? From an insurance perspective, what is the “exposure”?
I’ll give you a better answer when you can answer that.

5

Hi,

I’m looking into buying my first property all it will take is a paint job and additional minor cosmetic work to resale. I will mainly want to flip properties. What type insurance (if any) do I need. I’m concerned about liability, fire, vandalism, etc. while it is in my name. (I will not be forming a LLC, S-Corp, etc for now). If insurance is needed - what type should I be asking for. Will the insurance cover me for any property I buy or do I need specific insurance each time I purchase a piece of property.

Thanks,

tew

6

Speak with your home owners insurance agent and ask them these questions, but an umbrella policy for at least one million in coverage is recommended.

Any time one takes ownership of a property, they should have it insured for it’s value. Protect your investment no matter how long you may own it. Protecting your investment, protects yourself!

Good Luck!

7

TEW,
You’ll need a Landlord Policy or Dwelling fire policy for each location you buy. Not all companies will entertain what you’re doing, as these will be VACANT buildings in the ins. co. eyes.

An “Umbrella” policy won’t help here, as an umbrella is a liability only coverage and you still need to maintain an underlying limit of $300,000 liability on each location before the excess or “umbrella” kicks in.

Take care.

8

When John says to be sure to read the policy (exclusions), what exactly am I looking for? I’ve only got a couple rentals, and it was a pain to find insurance period. My insurance seems to have requirements that I’m told are more strict than most, and there are many exclusions (I’ve only skimmed over it, it did suck to read). Without getting and reading countless other insurance policies until I’m an expert, are there any guidelines or standards to look for or to tell my agent that I require?

Thanks

9

Buckeyes,
Property Insurance for landlord’s come in “Forms” of perils, quite simply a basic, broad or special form. These are show as either a FL1,FL2,FL3 or DP1, DP2, DP3 or HO1, HO2, HO3 where 1=basic, 2=broad, 3=special.

Always get the special form 3 if you can, the only things it won’t cover is flood & earthquake (there are some other minor exclusions). If you only have a broad form 2, things like weight of ice & snow, pulling down your gutter’s & facia are not covered.

Ask your agent to explain what form of coverage you have and what it would take to get a special form.

Good luck!