GLIGA Blog: June 2009

What Are Some Coverages Perils On A Landlord Insurance Policy?

Some basic coverages are fire, wind, hail, lightning, explosion, emergency repair after loss, debris removal, fire department charges, damage from a vehicle or aircraft, and emergency removal of personal property.

Some additional coverages you should consider when purchasing a landlord insurance policy:

Vandalism and Malicious Mischief are coverages when some one vandalizes or intentionally damages your property. A good example would be a disgruntled tenant "remodeling" your home while moving out.

Loss of Rents are coverages that provide a monthly rental payment to the landlord from the insurance company while the property is being repaired. The damage would have to be severe enough that it would be unlivable for the tenant. It is a nice coverage when you are not able to collect rent from the tenant because that can't live in the home.  FYI, tenants can also get a loss of use coverage from a renters policy to pay living expenses for them while the property is being repaired.

ACV (Actual Cash Value) verses Replacement Cost are two very important options when purchasing a landlord insurance policy.  ACV is a policy that will pay the homes current market value when there is a total loss. Replacement cost will pay for the home to be completely rebuilt after a total loss.  Replacement cost policies are usually more expensive.  ACV policies are usually a required coverage on a vacant property.

Personal Property is a coverage for landlord property such as a stove, washer, dryer, and any other property owned by the landlord at the property.

For quotes on landlord or vacant property insurance please go to http://www.getgliga.com or call us at 888-438-4544.

The Home Insurance Specialists

Why is it so hard to insure a vacant home?

The biggest reason is that when a home is vacant a very small problem can become a very large problem. Take for example a leaky sink.  I had insured an apartment building and when the tenant moved out they did not turn off the plumbing completely on the second floor when they removed the appliances.  The dripping was so slow it was almost unnoticeable but brought the ceiling down on the first floor and destroyed some cabinets.  If no one is actively working on the property an a daily basis, a home can really accumulate some damage.

Another problem is vandalism or theft.  A property left alone is prone to attract the wrong element expecially in a more urban area like detroit.  We have cases in Detroit where other investors steal cabinets, plumbing, and other building materials for their own property.  It's a horrible thing.  Also when copper was a hot comodity many homes were being stripped for salvage. We also had a home insured that was used for a dog fighting arena because someone knew the property had been vacated.

Many companies are not equipped or have the underwriters to properly rate and write insurance on vacant properties. There are companies that specialize in vacant home insurance and are offered by some agents.  The hard part is finding the agent who knows the product and writes for the company.

We have chosen to specialize in insuring homes, landlords, and investors properties.  We insure vacant properties even while being rehabbed.

For advise or a quote please visit our website at http://www.getgliga.com or call us at 888-438-4544 and ask for Don

The Home Insurance Specialists.