Insurance
I am a homeowner as well as investor. I have (2) 2 Family units, (4) Single Family and a 4 Family unit. I have been able to get reasonable Insurance rates for all with the exception of the 4 family. My Insurance agent told me that I had exceeded the limit on NOO investments allowed by my current Ins. Company and that the 4 family was considered a commercial unit. The 4 family is now insured at 5x the cost of any of the other units. Should I believe him or find another agent. I also have a 5MM umbrella on my personal residence that covers the first 6 properties. Any thoughts? Thanks, Tom
Try Erie Insurance out of Ohio. I think you will fit their criteria.
Welcome Tclifford!
Maybe this article will help:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=438
It sounds like your Agent is extending liability to the properties from your home and PERSONAL umbrella. I'd recommend you separate the PERSONAL exposure from your BUSINESS (i.e. rental properties) exposure. I am not comfortable with that from an Agent or a fellow investor's perspective.
Additionally, find an Agent (maybe through a local REIA group that works with investors frequently), rather than just check specific companies. Erie which is out of Erie, PA actually, has a good habitational product in some of the 16 states we operate, but as I don't know where you are, can't tell if they could help you. Feel free to PM me if you have any specific questions.
Tim