As A Landlord, Should I Require Tenant’s To Carry Renter’s Insurance?

June 14, 2011 by Leave a comment

Having an investment property can be a great return on investment. But on the contrary, you do have the management aspect. This can include maintenance, leases, insurance and etc. One of them being your insurance policy. In this blog were going to cover why your tenants should have renter’s insurance, or better known as a homeowners policy number 4.  If you want to know more about landlord insurance, please visit this link.

What Is Renters Or Tenants Insurance or Known As A Ho-4?

A HO-4 policy, also known as renter’s insurance, covers only the tenants interest. This includes the following coverage,

  • Personal Property
  • Medical Payments
  • Loss Of Use
  • Personal Liability
  • Other Coverages are available

So Why Should I As Landlord, Require  My Tenants to have Tenants Insurance?

To avoid any legal problems or losses from your tenant.  A Renters Policy has a personal liability built in.  If your renter were to encounter any legal problems or losses, she/he is covered.  Here are some examples of what could happen.

-A renter invites a guest over and they slip and fall on the premises.

-They could accidentally start a fire in the premises.

With renters insurance, any type of law suits, or premises losses are going to fall on their policy. If your renter does not have insurance, you as a landlord are going to have to use your own policy.  Requiring your renter to have insurance can avoid huge headaches in the event of a loss or legal problems. The last thing you need to deal with as a landlord is getting sued for one of your tenant’s actions. In additon if a loss does occur on your policy, chances are your premium is going to increase on next renewal.

How much personal liability coverage should your renter have?

All you should be worry about on your tenant’s policy is their personal liability.  I would recommend a $300,000 liability requirement and it costs the tenant $15.00 – $30.00 per year extra.  This for the most part will cover most law suits that a tenant could encounter.  This for the most part covers the average cost of a dwelling or condo if were to completely burn to the ground.  If you feel that this will not be sufficient, your renter could go with a $500,000 personal liability or higher.

How much does Renters Insurance cost my tenant? 

Depending on how much coverage the tenant decides to go with besides your liability requirements, it can run as low as $80 per year all the way up to $300.  A lot of this depends upon the renters credit, previous losses, and how much other coverage they decide to buy and etc.

How do I get Proof Insurance As A Landlord?

You should get a Certificate of Insurance or Coverage Confirmation from the company or agent writing the insurance policy. I would also recommend getting listed as an additional insured on the policy if possible. That way you are always getting notified on any major policy changes, but mostly if the policy is being cancelled for any reason. Just like the insured, you get a policy packet  in the mail with detailed coverages, and notifications just like the tenant would.

Please contact us with any questions or for any quote requests for both Landlords and Tenants.

Filed under Home Insurance, Landlord Insurance Tagged with , , , , , , , , , , , , , , ,

What Type Of Insurance Policy Do I Need For A Rental Property?

June 13, 2011 by 1 Comment

Rental property’s can provide great residual incomes, and right now with the rental market in demand, a lot of people are putting their house’s up for rent or buying investment properties. Before you do this, your insurance policy must be written correctly, or else you could have some major gaps in coverage.

First of all lest highlight some of the most common types of properties.

  • Apartment Building
  • Condo
  • Dwelling

Apartment Building Insurance

This policy is designed for a building that houses multiple units, usually more than 3.  The policy includes building coverage, a general liability, business personal property coverage, loss of use, crime coverage and more.  This policy is strictly designed for apartments.

We usually write these policies through Travelers, Philadelphia or Middle Oak.

Landlord Condo Insurance

This policy is built for someone who owns a condominium and rents it out. It includes interior dwelling coverage, loss of rent, medical payments, and landlord liability. You can add things such as extended liability coverage, and loss assessment. This policy is usually written under Dwelling Fire Policy Form 8.

Landlord Dwelling Insurance

Investment houses are either written under a DP-1 or a DP-3. Or known as a dwelling fire policy. Most policies are written under a dp-3, because it gives you replacement cost coverage on the dwelling, which is better than the dp-1 actual cash value coverage on a dwelling. Always make sure you have the following coverages on your dwelling rental property.

  • replacement cost on dwelling(dp-3)
  • extended dwelling coverage, at least 120 percent
  • landlord business property(stove top, dishwasher, fridge, washer dryer, etc)
  • other structure coverage
  • loss of use, for at least 12 months
  • landlord liability
  • sewer back up
  • Ordinance & Code Coverage

If you have any questions or want a quote contact us.

Filed under General Insurance, Landlord Insurance Tagged with , , , , , , , , , , , , , , , , , ,

What Is A Personal Umbrella Liability Insurance Policy?

June 8, 2011 by Leave a comment

When watching television we see lots of lawsuits taking place which could even involve you.  These lawsuits and advertisements thereof,  pay for a lot of airtime.  You have “Henry the Hammer” telling you how much money you can get for your car accident.  Unfortunately, you have a ton of frivolous lawsuits that are going against the insurance companies at which at the end,  drives up the premium for your vehicle insurance.  Unfortunately, it is the attorneys making the most money from this.  It is not the victim that wins, it is the attorney that wins.  This is why if you have assets, your life savings, money in bank, properties, you have to make sure you are protecting yourself from these attorneys because they will go after these assets.

Let us explain how an umbrella works.  First of all, umbrellas are purchased in increments of one million.  Our agency can sell a ten million dollar umbrella, but the average is one million.  Umbrellas protect you above and beyond your auto and home insurance liability.  Do keep in mind to qualify for an umbrella, you have to maintain certain underlying limits.  The United States average for these requirements is $250,000 per person, $500,00o for the total accident, and $100,000 for property damage for auto insurance liability.  For home insurance liability, it is a $300,000 minimum, this can include your renters, homeowners, landlord, or investment property.

Examples of how an umbrella will work:

1.  An auto insurance example:  you get into an at fault accident and there is one person in the car.  That person sues you managing to get a $500,000 judgement against you including fees.  At this point your limits have been exhausted on your auto insurance policy.  But you have wisely purchased an umbrella, so the one million dollars is more than enough to cover the judgement.  If you had not purchased an umbrella, your personal assets and estate would be jeopardized.

2.  A Homeowners example:  someone comes to your home and visits, slips and falls and sues you for $700,000 including fees.  That person wins and your $300,000 homeowners policy limits are exhausted.  Again, since you have purchased an umbrella, you are protected because you have at least one million to cover the judgement.

DO I NEED AN UMBRELLA?

A simple answer is, if you have money in the bank, own stocks, are a CEO, an athlete, a business owner or make an average income, you need one.  One easy way to figure this out, “how well established in life am I right now?”  You need one, but if you are a college student and don’t have a penny in the bank, you don’t need one.  A college student is usually lucky just to buy an auto policy covering the mandatory legal liability limits.

How much is an Umbrella?

The average price of an umbrella is $260.00 per year at our agency which includes two vehicles and one home.

Our Companies Claims Process Is Excellent

We only write insurance with companies that have an excellent claims process. A claim can be complicated, but our companies will treat you fair and keep the process as simple as possible.

Personalized Service

Our agency is family based and understands insurance. You will work one-one-one with an experienced agent who will find a policy that best fits your business needs. We believe in “good old-fashioned customer service”.

Get A Free Umbrella Insurance Quote!

We offer up to 6 personal lines companies for umbrella insurance. To get a insurance quote, please use our quick form, or contact us during normal business hours at (888)-270-0995. We will counsel you into how to receive the best price, for the most coverage. We will also advise on how to maximize discounts.

Filed under Auto Insurance, Boat Insurance, Car Insurance, Condo Insurance, General Insurance, Home Insurance, Homeowners Insurance, Landlord Insurance, Renters Insurance Tagged with , , , , , ,

So What is an HO-5 Policy?

June 7, 2011 by Leave a comment

When you are purchasing a Condominium, you need an HO-5 form.  This form is designed with the Condo in mind.  It provides open peril coverage on personal property and contents of the insured, in addition to open peril coverage on the dwelling and other structures.

Losses to personal property and contents are paid on an actual cash basis and losses to the dwelling are paid on a replacement cost basis.

Find out more by contacting Denvers Insurance and speak to one of our Insurance Agents.

Filed under Home Insurance Tagged with , , , ,

So What is an HO-3 Property Policy and Why Should I Have One?

June 7, 2011 by Leave a comment

Homeowners 3 Forms in Property Insurance are for the owner-occupant of a dwelling.  The dwelling is used primarily for the owner as well as incidental occupancies including an office or professional occupancies.  Under the HO3, the dwelling and other structures are insured for risk of direct physical loss with losses paid on a replacement cost basis.

Under the HO3, the contents and personal property are insured for broad perils with losses paid on an actual cash value basis.  Coverage does not include losses to fences, driveways or walks caused by a vehicle owned or operated by the insured.

Protect yourself, your property and your personal property.  Make sure you have the right policy for your needs.  Never try to second guess, always be protected with the right insurance.

Filed under Home Insurance Tagged with , ,

So What is a DP-3 Property Policy and Why Should I Purchase One?

June 7, 2011 by Leave a comment

Why should one carry a DP-3 Policy?  First of all, for those unfamiliar with a dwelling policy, the Dwelling Policy 3 is a policy used to insure private dwelling residential property. Occupation could include a homeowner who doesn’t qualify for an HO-3 or HO-5 policy, or if the property is being rented to tenants. A DP-3 is not designed for vacant properties.

The dwelling is insured under a replacement cost basis. DP-3’s vary company to company. Most companies include other structures coverage, of 10 percent of what the dwelling is insured for. Other coverages that can be endorsed and added to the policy include personal property, personal property full replacement cost, extended dwelling coverage, loss of use, law and ordinance, sewer back up, liability, medical payments and more.

For more information on insuring and buying a landlord insurance policy from us, please click here.

Filed under Home Insurance, Homeowners Insurance, Landlord Insurance Tagged with , , , , , , ,

Looks like Droughts are still ahead in Colorado: How to protect your Home from wildfires

June 7, 2011 by Leave a comment

We are above average in rainfall in Colorado but we could very easily slide back into a drought season in the mountains and plains.  When the burning sun pushes the temperature to over 100 degrees and it occurs day after day with little rainfall, chances are we are in for a drought.  So what causes a wildfire and how do we protect ourselves against such risks?  First of all, it is not only the trees that are a threat but it is the grass.  For instance, a grass fire can start blazing and move to the trees.  The trees, of which there are branches and leaves light up in a glow and we have a forest fire on our hands.

Other ways wildfires can occur are through careless “campfires” that are not watched or kept within the confines of a concrete slab or fire ring.  Just pure carelessness in general, such as throwing a cigarette butt on the ground or tossing a match can light up a grass fire resulting in an eventual forest fire.

The best policy is the DP3, it includes replacement cost on the dwelling, personal property coverage can be added with replacement cost, extended dwelling coverage can be added, and many more things.  This is specifically if it is seasonal dwelling.   If it is a primary dwelling, then one needs an Ho3.

Filed under Home Insurance Tagged with , , , , , , , ,

June Is the Start of Colorado’s Peak Hail, Flood & Severe Weather Months

June 6, 2011 by Leave a comment

According to RMIIA, June is the start for severe weather. Colorado is known as the hail capital in the world. This is a good time to take out your policy and make sure you have all ends covered.  As we all now Colorado has some of the highest home insurance prices due to this. Rates also haven’t been good in Colorado lately, due to the recession, when insurance companies get a poor return on investment. Other reasons such as higher insurance fraud during recessions, and insured’s who have fallen off the book, doesn’t help. A lot of companies are also starting to go towards a mandatory 1% deductible of the amount the dwelling for all wind and hail losses. Lets take a look at previous catastrophe losses in the past in Colorado.

Home

Date Location
Cost When Occurred
(Millions)
2009 Dollars
(Millions)*
July 20, 2009 Denver Metro
$767.6
—
July 11, 1990 Denver Metro
$625.0
$1.03 Billion
June 6-15, 2009 Denver Metro
$353.3
—
June 13-14, 1984 Denver Metro
$276.7
$571.3
July 29, 2009 Pueblo
$232.8
—
October 1, 1994 Denver Metro
$225.0
$325.7
May 22, 2008 Windsor
$193.5
$192.8
June 8-9, 2004 Denver Metro
$146.5
$166.4
August 11, 1997 Denver Metro
$128.0
$171.1
May 22, 1996 Denver Metro
$122.0
$166.8

Filed under Home Insurance

Does my Renters Insurance Include Theft & Burglary Coverage?

June 1, 2011 by Leave a comment

I got a question recently asking if their personal property is covered in the event of a burglary or theft. This all depends on what type of policy you have. To put it shortly yes, it does cover it. As long as you have an HO-4 policy. If it is a fire policy, it probably isn’t good for you.

You can simply check by calling us, or you can pull out your declaration page and make sure your covered. Keep in mind that a deductible will come into play, if you have a claim.

Main Website Other Website

Filed under Home Insurance, Renters Insurance Tagged with ,

Why have my home insurance rates gone up?

May 15, 2011 by Leave a comment

In Colorado in July 2009, we had a major hail storm come through Denver and surrounding area’s. It came through and caused a little bit of property damage to homeowners roof’s. Now depending on the roof condition, a lot of homeowners filed a claim due to hail damage to their roof’s. Not only did I have a lot of clients who got new roof’s, but also I saw a lot of neighbors and people I didn’t know, by driving around the neighborhood and seeing these new roof’s getting replaced. A lot of roofer’s were going door to door, trying to sell people new roof’s paid by the insurance company. I knew a lot of people who were incredibly happy about their new roof’s and how the insurance companies, with no haggle, replaced their roof.

So what is the unintended consequences of all these roof’s being replaced? Well lets face it, the insurance company makes money off of your premiums you pay each year. So what happened when homeowners got their insurance re-newels? Well, a lot of them experienced sticker shock. Lets face it, the insurance company has to make it up those losses some how. So what they do is raise insurance premiums all across the board. This very unfair to the consumers who didn’t file a claim, but premiums are based off of loss experience.

So next time you get an insurance re-newel and your unhappy about the premium increase, don’t forget the insurance company just bought you a new roof. And if your one of those consumers who got hit with a premium increase and didn’t get a new roof. Maybe next time you should consider, because people will always take advantage of a new roof paid by the insurance company.

Loss experience + return on investment = Insurance premium rates.

Visit Our Website

Filed under Condo Insurance, Home Insurance, Homeowners Insurance, Landlord Insurance Tagged with ,

Newer posts →