Just to kick off some discussions…..great to see that we can now get Landlord Insurance in the USA. Called "Rent Protect" and offered by AON. The policy is underwritten by QBE which does a large volume of similar policies in Australia.
Cover includes:
If your tenant abandones the property, if you have to evict the tenant, if the tenant stops paying rent you get up to 6 months rent with one months rent being the deductible.
Death of a tenant you get up to 3 months rent with one months rent being the deducible.
Hardship by a tenant and they get a court order cancelling the lease you get up to 3 months rent with one months rent being the deductible
If your tenant is called up to military service you get up to 3 months rent with one months rent being the deductible
legal expenses in evicting a tenant is up to $1000
The cost is based on the monthly rental income . Monthly rent up to $1200 you annual premium is $250 so again comparable to what we pay in Australia.
Happy to field any enquiries
I predict this insurance company will not have that product for long and or will have all sorts of exclusions. This is strickly rent does not include vandilism by tenant correct? I just had my worse tenant vadilism.. over 50k in damage.. the house had to be fumigated and sanitized before the insurance adjuster would come in.. the walls had to be taken down to studs. all cabinets and appliances removed along with toilets and bath tubs.. the insurance company is going to subrugate and they are potenitally going to be going after the tenant criminally and put them in Jail. First thing insurance adjuster asked me though was how long was the house vacant… 30 days is what it was… He said good because if it was over 60 days you would not be covered… To all that own US rentals be sure to check that 60 day clause if you house is without a tenant for more than 45 days or so call your insurance company and get extended coverage so if you have a claim your covered.
Hi there,
Interesting you post that Landlord Insurance is available in the US finally, as I have had Landlords' insurance for the last few years in the US from Allstate Indemnity Company (see http://www.allstate.com/home-insurance/landlord-property-insurance.aspx).
It will be worth comparing the two products on my next renewal though.
As Jay mentions, it is most important to check the vacancy clauses with regards to when coverage lapses.
Regards
Dave
my policy covers loss of rent in this situation were my property got wiped out by the tenant.. however I have not ever looked for just vacancy insurance or lease break insurance.
In some US inner-city market, like SW atlanta for instance, it's next to impossible to get a landlord policy for theft coverage. It has been like that for several years…you can get vandalism coverage but not a true landlord policy. It's probably the same in places like kansas city, memphis, st louis and the like, areas with high crime and a total disregard for property. I actually saw a group of 9 "men" carrying various parts of a house down the street one day in southwest atlanta. We generally stay out of those areas and usually only buy homes where the systems remain intact. We have had good experience with Farmers Insurance over the years but make sure you ready your policies closely for the exclusions and limitations of coverages.
Jay – where was that property? was it mold ridden? is that why you had to take it back to the studs?? Andy
Andy, Not mold it was feces and other garbage. the adjuster would not go in the house. and had the bio hazard company come and clean it before he would go back in and give me the insurance quote for repairs.. the bio company took the sheet rock out. It was the worst I have personally seen.. and it was one of my personal properties. that I paid 130k for.. So not in the hood or anything….. Although systems thefts happen all over the mid west and south east.. I was sitting at my closing attorneys office in Stockbridge ( which is a suberb of Atlanta and definatly a nice area and asked him why it was so hot in his office.. His reply
Our condenser units were stolen last night!! I did have my first theft in Oregon by the by this year as well someone walked off with the condenser unit.. And that was a 300k house.jayhinrichs wrote:I did have my first theft in Oregon by the by this year as well someone walked off with the condenser unit.. And that was a 300k house.Is theft on the rise there?
Can't help but think things are going to get a lot worse yet. While the poverty level as a percentage hasn't risen that much given the circumstances the sheer numbers have grown considerably as the population has risen. There's also the migration of the poor to areas they can get shelter, warmth and services.
Had a fitter from Oregon working at a plant I worked at (some 25+ years ago now). He moved to NZ so his kids could grow up without having to worry about who was going to stick a gun in their face or worse a face full of dope. I don't think he would regret a thing looking back now.
Freckle, Here in white bread oregon the crime rate is about as low as it gets in the US… seriously look it up.. I don't lock my car I don't lock my house at night… We build houses here and bring in 25,000 worth of lumber with no security.. In the South or in Detroit it would be stolen before you could nail it up… Not the case in Oregon. WE have Honor box's at many farms.. they will put a little stand out on the street with whatever they are selling tomato's flowers etc. with a sign that says what the price is and a can to put your money in..and this is still going on in the metro area !!!!!!!!!!!
jeepers in australia landlord insurance has been around for ages…and covers loss of rent and tenant damage to property as standard if not completely recovered by the seizure of the bond. too bad you can't get it vs bad property managers, which seems to be my problem at the moment
Hi DG Hayes – your policy is a different sort of policy completely. The policy here is fantastic – the same sort of policy as Australians are familiar with, and the only one of its type in the US
We had those honor boxes where I grew up as well….used to buy our milk that way. It's amazing to me what people will steal. I was in a home in a very nice neighborhood in SW atlanta the other looking at a great house. Some idiot stole about 20' of copper plumbing and the spigot at the basement shower….of course the water must have been on so it flooded the basement area. Nothing like several thousand in damages for $10 at the scrapper. The sad irony is that, in talking to the neighbors, the theft was done by a squatter left in place by the failed landlord after he was told the place had been foreclosed. Perfectly good condensor sits in the backyard and the coils are still in the furnace…brand new appliances upstairs in the kitchen but this widget steals $10 worth of copper!
Most inner city areas are full of this…and the bad guys have cars so even offices and churches in stockbridge aren't safe anymore. You really have to READ your insurance policies to see in ADVANCE what will or won't be covered. Most of those policies get read when a claim occurs and that's too late!
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