can anyone share what type, how much, etc.. of insurance I should get for a 4-family I just put under contract? Any mistakes I can learn from in this area? Many thanks
You will want to consider replacement insurance on the building. If the building is older, you probably want to also make sure you get the insurance that pays to bring any repairs up to current code. You probably also want to get loss of rents and some minimal contents insurance to cover appliances etc. that belong to you. As for the liability side, it all depends on your risk profile. If you hold the property in your name, I would recommend a minimum of $1m. In order to save money and make sure I am protected on all fronts, I have $500k liability insurance on my 4plex with an additional $1m coming from an umbrella policy that also adds $1m liability to my personal residence, vacation home and cars. That umbrella policy only cost $130 per year due to small probability that it would ever be called into use.
great information- thanks for posting. What should I expect to pay for the insurances you mentioned? It is an older property and I am buying it/holding it under my LLC. I am considering doing a transfer to a Realty Trust, held by my LLC. Any comments on that move too?
You will want to consider replacement insurance on the building. If the building is older, you probably want to also make sure you get the insurance that pays to bring any repairs up to current code. You probably also want to get loss of rents and some minimal contents insurance to cover appliances etc. that belong to you. As for the liability side, it all depends on your risk profile. If you hold the property in your name, I would recommend a minimum of $1m. In order to save money and make sure I am protected on all fronts, I have $500k liability insurance on my 4plex with an additional $1m coming from an umbrella policy that also adds $1m liability to my personal residence, vacation home and cars. That umbrella policy only cost $130 per year due to small probability that it would ever be called into use.
great information- thanks for posting. What should I expect to pay for the insurances you mentioned? It is an older property and I am buying it/holding it under my LLC. I am considering doing a transfer to a Realty Trust, held by my LLC. Any comments on that move too?
This may help:
http://www.thecreativeinvestor.com/modules.php?name=Articles&file=article&articleid=438
[addsig]
EXTREMELY valuable info Tim. Thank you
Very much welcome...
[addsig]