I have my first investment property (an inner city semi-detached). Rehab is complete and tenant due to move in next month, now I get a notice from my insurance carrier that they are cancelling coverage because the other half of the property is vacant and damaged. I know I can get fair plan coverage for the property/fire insurance portion, but does anyone have any suggestions of insurance companies that will not only insure structure, but offer liabilty coverage? I can’t think of owning a rental with no liability coverage.
If it makes a difference, the property is in Harrisburg PA.
Any suggestions would be appreciated.
If you already own a home, your first call should be to the insurance company that covers it. I got all of my insurance, including liability, from Travelers through GEICO.
I just got done doing a rehab of course it was unoccupied. Because it was unoccupied the insurance company charged me 1000 per year on a 39000 policy. Now I have tenants in it and my insurance will probably drop down to half of that amount. There are insurance companies out there that will do it albeit probably expensive. Try an insurance broker instead of say an agent for a specific company.
I’m beginning to look into insurance options too (planning for my first invest).
At issue for me is that I live at the state border and most of my opportunities will be in the neighboring state. I made a call to the company insuring my home, and they will not insure a rental out of state.
Hopefully, this won’t become too much of a headache with sky high premiums that will take a big bite out of the cash flow.
Working on options, but no decision at this point. Best I have seen so far is a commercial policy with a minimum annual premium of $1500.