Ok, I started looking at houses and I’m working with a financing guy. Now I want to start talking to Insurance companies.
What am I looking for in a insurance company? What coverage I should have? What questions should I ask?
I’m looking to work with the right company. Should I go to companies like Allstate or State Farm? I use Allstate for my primary resident.
Thanks
auggflo
Since you already have a carrier for your primary residence consider staying with that carrier. Insurance companies give discounts based on the amount of lines of insurance you have with them. More houses, means more policies, which means discounts.
You want to make sure that you cover the property for it’s FMV. Now depending on the age of the property insurance companies will offer you two ways to cover the proeprty. Replacement costs and or actual cash value. The age of the house will dictate what the insurer is going to offer.
You also want to concentrate on your liability protection. That is the portion of the policy that protects you from a law suit if somebody is injured on your property. IE: Somebody has a slip and fall on you property and they file suit against you. The liability coverage is the amount you are covered against. Any judgement issued against you under the liability limits you are covered. Any judgement issued above your liability limit comes out of your pocket. It is best to get the highest limit you can afford. (One million in liability is not that expensive at all, you will be surprised)
These are the two BIG areas you want to cover. Also check on loss of rental income if the propertyis damaged, sewer backup, flood insurance, wind/hail damage and the like. If you have a competent agent she/he should be able to cover all this with you in detail.
Good luck!!!