If you are an owner of several rental properties, keeping your insurance program organized is very important. If you are like many owners, as you acquired each new multi-family property you purchased an individual policy just ahead of the closing to have protection for the building and liability associated with the new exposure. Now you may have several different insurance policies all with different renewal dates, different payment dates, with different companies, and possibly even different liability limits.
There is a better way. You can simplify the insurance for all of the properties by placing them all on one policy, with one payment, and with one renewal date. Equally important, the policy’s liability coverage will extend over all of the properties. This will consolidate your coverage, eliminate duplicate coverage, and simplify the management of the properties.
Let us look at a common structure: You own several rental properties, and the current insurance program looks like:
Building #1- $560,000 in building coverage, $500,000 in liability, rental loss coverage, with a $500 deductible. Policy renewal on June 25th. Billed monthly.
Building #2- $720,000 in building coverage, $1M in liability, no rental loss coverage, with a $2,500 deductible. Policy Renewal on April 11th. Billed quarterly.
Building #3- $330,000 in building coverage, $500,000 in liability, rental loss coverage, with a $5,000 deductible. Policy renewal on August 13th. Paid in full.
Building #4- $910,000 in building coverage, $2M in liability, rental loss coverage, with a $10,000 deductible. Policy renewal on November 2nd. Billed monthly.
Placing these four properties, and their insurance programs, under one policy would simplify the billing, standardize the coverage for all of the properties, and eliminate the hassle of separate renewals each year.
The new insurance policy would look like:
Buildings #1-4 Scheduled with a total building limit of $2,520,000. Using a “blanket limit” provides a rating discount, typically 10%. There is now rental loss coverage for every building. Plenty of available liability coverage spanning all four buildings available in limits from $1MM to $20MM. One deductible for any claims on the policy. Special form coverage for all of the buildings. One renewal date. One monthly bill. One insurance company. One claims department. One agent: Gordon Atlantic Insurance.
Each building is a sizable financial asset. Each building also represents a potential liability exposure. The insurance program you have in place for your properties is extremely important in order to sleep easy at night, knowing the buildings and your liability is efficiently well-protected.
If you want to investigate this option even further, simply contact us by clicking below.