Landlord insurance - help comparing two quotes

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beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Landlord insurance - help comparing two quotes

Post by beagle1 » Fri Sep 08, 2017 7:03 pm

So Allstate had allowed my personal homeowner's policy to be used for renting out my house (80 year house, 2 br, 2ba, garage). However, they terminated the policy, and I had to quickly set up a new policy with another company pretty quickly. I temporarily chose a State Farm policy that I'm not thrilled about. But it did allow me to buy time.

The biggest obstacle is a high deductible ($2,420) that they won't let me lower without either more history with them, or a second auto policy with their company. In comparison shopping with American Family Insurance, their coverages for sewer and loss of rent, were inferior (or less spelled out, in terms of sewer).

The quote from American Family was twice as high, however. Only $350 of the price discrepancy is related to the higher deductible. Their loss of rent coverage will provide me with about $12,000 over six months versus $1,000 from State Farm.

I don't want to be "penny wise, pound foolish" but I didn't want to start with the policy that is twice as expensive.

Here are three questions, with the policy quotes included below:
A) Do I need to keep shopping? I tried Amico, but they wouldn't insure my property, but I am open to other companies. It does seem like the universe for (reputable) landlord insurance companies is more limited. The property is in Colorado.
B) Do I go with AmFam, and find ways to cut the cost down with coverages I don't need?
C) Or do I just stick with State Farm, knowing that I have only filed one claim - for hail damage - in the 19 years I have owned the property? (I know, famous last words.)

Below are the coverages for the two policies. Both policies cover 100% replacement cost

1) State Farm Coverage
Total Annual Premium 1,159.00
Dwelling (Coverage A) 242,000 1,053.00
Dwelling Extra Replacement Cost Excluded
Dwelling Extension 32,800 18.00
Personal Property (Coverage B) 12,100
Business Liability (Coverage L) each occurrence 300,000
Business Liability (Coverage L) annual aggregate 600,000
Premises Medical Payments (Coverage M) each person 1,000
Loss of Rents (Actual Loss Sustained)
Deductibles
Policy deductible 1% 2,420
Charges / Credits
Home Alert (63.00)
Sprinkler system (60.00)
Utility rating plan 211.00


2) AmFam Quote
Total Estimated Annual Premium $2,259.00
Premium
General Liability $9.00
Limit $2,000,000
Medical Expense Limit $5,000
Property Damage Liability Deductible $0
Property Cause of Loss
Cause of Loss Risks of Direct Physical Loss
Terrorism
Terrorism Reject
Employment Practices Liability Insurance
EPLI Coverage Reject

Coverage Detail Coverage Limits Premium
Building $1,844.00
Limit 228,000
Glass Deductible 500
Valuation Method Replacement Cost (RC)
ACV Loss Settlement - Wind/Hail Roof
Surfacing
No
Builders Risk No
Deductible
Deductible 1,000
Business Income Options $129.00
Dependent Properties Limit - Total Limit Desired
Ordinary Payroll Expense - Extend Days To 180 Days
Extended Business Income - Extend Days To 180 Days
Remove 72 Hour Waiting Period Yes
Dependent Properties Limit - Included in BOP 5,000
Sewer Back Up and Sump Overflow $101.00
Limit 5,000
Deductible 500
Auxiliary Buildings & Structures - $176.00
Limit 32,100
Total Estimated Annual Premium $2,259.00

Ruger
Posts: 67
Joined: Fri Jun 09, 2017 9:44 pm

Re: Landlord insurance - help comparing two quotes

Post by Ruger » Fri Sep 08, 2017 7:13 pm

I have three cars, my house, and two rental condos insured through State Farm.
I don't have the policy in front of me (I can look at it tomorrow) but I pay around $350 per year for coverage for each unit.

denovo
Posts: 3313
Joined: Sun Oct 13, 2013 1:04 pm

Re: Landlord insurance - help comparing two quotes

Post by denovo » Fri Sep 08, 2017 7:29 pm

It may not hurt to have an indie agent shop around landlord policies.

edited to add: I don't think double the premium for $10,000 extra in loss of use is worth it, either
Last edited by denovo on Fri Sep 08, 2017 7:34 pm, edited 1 time in total.

denovo
Posts: 3313
Joined: Sun Oct 13, 2013 1:04 pm

Re: Landlord insurance - help comparing two quotes

Post by denovo » Fri Sep 08, 2017 7:31 pm

So Allstate had allowed my personal homeowner's policy to be used for renting out my house (80 year house, 2 br, 2ba, garage). However, they terminated the policy, and I had to quickly set up a new policy with another company pretty quickly.
When you convert a property to rental, it becomes a landlord policy. Who told you it could be kept as personal? That makes no sense. Why were you dropped? I believe when you shop around policies you need to disclose if you've been dropped, which hurts your rates. I would disclose that when shopping around....

beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Re: Landlord insurance - help comparing two quotes

Post by beagle1 » Fri Sep 08, 2017 8:05 pm

That was my thinking on the $10,000 loss of use. Will look at an indie agent, good suggestions.
denovo wrote:
Fri Sep 08, 2017 7:29 pm
It may not hurt to have an indie agent shop around landlord policies.

edited to add: I don't think double the premium for $10,000 extra in loss of use is worth it, either

beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Re: Landlord insurance - help comparing two quotes

Post by beagle1 » Fri Sep 08, 2017 8:07 pm

Thanks, they did previously have the policy set up to use as either my primary home or as a rental per my policy and agent. They have stopped offering that coverage.
denovo wrote:
Fri Sep 08, 2017 7:31 pm
So Allstate had allowed my personal homeowner's policy to be used for renting out my house (80 year house, 2 br, 2ba, garage). However, they terminated the policy, and I had to quickly set up a new policy with another company pretty quickly.
When you convert a property to rental, it becomes a landlord policy. Who told you it could be kept as personal? That makes no sense. Why were you dropped? I believe when you shop around policies you need to disclose if you've been dropped, which hurts your rates. I would disclose that when shopping around....

boglerdude
Posts: 425
Joined: Fri Jul 10, 2015 1:28 am

Re: Landlord insurance - help comparing two quotes

Post by boglerdude » Fri Sep 08, 2017 10:12 pm

"Loss of Rents (Actual Loss Sustained)" double-check that it's capped at $1k, that sounds wrong, most policies are 6 months. Read the policy, agents often make mistakes.

It's not worth making small claims as they raise your rates so the deductible isn't a big deal. In addition, changing the deductible has less impact on what you pay, than you might expect. You can test for yourself with Statefarm's online quote tool.

Max the liability on your policies and get a 1M umbrella.

beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Re: Landlord insurance - help comparing two quotes

Post by beagle1 » Sun Sep 10, 2017 10:38 am

Good point, I'll ask about increasing the liability limit.

I did ask about the $1k loss limit, and he said that was in fact the limit. Will see when I actually review the full policy.

I know the deductible isn't a huge part of the bill - it's only about $350 to lower it to $1k - but they won't even allow me to do so without having my auto policy with them. Or a longer-term relationship. I will try to do that at some point.
boglerdude wrote:
Fri Sep 08, 2017 10:12 pm
"Loss of Rents (Actual Loss Sustained)" double-check that it's capped at $1k, that sounds wrong, most policies are 6 months. Read the policy, agents often make mistakes.

It's not worth making small claims as they raise your rates so the deductible isn't a big deal. In addition, changing the deductible has less impact on what you pay, than you might expect. You can test for yourself with Statefarm's online quote tool.

Max the liability on your policies and get a 1M umbrella.

Carefreeap
Posts: 1978
Joined: Tue Jan 13, 2015 7:36 pm
Location: SF Bay Area

Re: Landlord insurance - help comparing two quotes

Post by Carefreeap » Sun Sep 10, 2017 3:22 pm

beagle1 wrote:
Sun Sep 10, 2017 10:38 am
Good point, I'll ask about increasing the liability limit.

I did ask about the $1k loss limit, and he said that was in fact the limit. Will see when I actually review the full policy.

I know the deductible isn't a huge part of the bill - it's only about $350 to lower it to $1k - but they won't even allow me to do so without having my auto policy with them. Or a longer-term relationship. I will try to do that at some point.
boglerdude wrote:
Fri Sep 08, 2017 10:12 pm
"Loss of Rents (Actual Loss Sustained)" double-check that it's capped at $1k, that sounds wrong, most policies are 6 months. Read the policy, agents often make mistakes.

It's not worth making small claims as they raise your rates so the deductible isn't a big deal. In addition, changing the deductible has less impact on what you pay, than you might expect. You can test for yourself with Statefarm's online quote tool.

Max the liability on your policies and get a 1M umbrella.
I'm another long term (close to 30 year) State Farm Customer. Periodically I will shop around for other coverage but since we were complicated (1 primary, 4 rentals, 2 autos + umbrella + valuable property) I've not been able to find something better. The long-term relationship helps.

Is there a reason you won't insure your auto? I agree with the need for an umbrella if you are a LL. Do you also have a primary home elsewhere? One nice thing about State Farm was that they were willing to have the umbrella cover my rental condo even though it was insured by USAA. I had to do a little extra paperwork every year but that was it.

beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Re: Landlord insurance - help comparing two quotes

Post by beagle1 » Tue Sep 12, 2017 4:17 pm

.dup post
Last edited by beagle1 on Tue Sep 12, 2017 4:18 pm, edited 1 time in total.

beagle1
Posts: 97
Joined: Sat Oct 02, 2010 3:09 pm

Re: Landlord insurance - help comparing two quotes

Post by beagle1 » Tue Sep 12, 2017 4:17 pm

beagle1 wrote:
Tue Sep 12, 2017 4:17 pm
Good point. Actually I think my wife's rental property is insured by State Farm. I think she had auto insurance through them, but was paying double the same coverage from Allstate. I'll have to check on that though.
Carefreeap wrote:
Sun Sep 10, 2017 3:22 pm

I'm another long term (close to 30 year) State Farm Customer. Periodically I will shop around for other coverage but since we were complicated (1 primary, 4 rentals, 2 autos + umbrella + valuable property) I've not been able to find something better. The long-term relationship helps.

Is there a reason you won't insure your auto? I agree with the need for an umbrella if you are a LL. Do you also have a primary home elsewhere? One nice thing about State Farm was that they were willing to have the umbrella cover my rental condo even though it was insured by USAA. I had to do a little extra paperwork every year but that was it.
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