Rental Home Insurance....

[JLTD]

Looking for some recommendations as noted in the thread title. Figured there would be some collective knowledge among members.

Backstory: Been with State Farm since the early 90s for everything. I own a house in Virginia, which has been a rental property since 2012. Due to tenants' neglect (clogged toilet by 12 year old) and another claim for a bullet hole (!) in the front window, State Farm has decided not to insure the home past the next renewal, which is in about 6 months.

I'm waiting for a callback from the agent; even though these claims aren't even close to making the property unprofitable for them, I know that insurance companies have their own "pain threshold" and will back away from what is seen as a bad risk by the numbers.

So -- looking for a new insurer for a rental property. Might consider moving the entire book of business (2 vehicles, umbrella, renter's insurance) there as well, and wondering what the Membership's experience is for this type property with various insurers.

Thanks in advance--

 

[Hall]

We use Erie for our home and cars. Haven't had to deal with any claims on the house but on the cars, we can't complain at all.

I'd definitely switch all of your business to someone else. If for nothing else, you'll get multi-policy discounts across ALL policies. I was on my parent's SF auto policy many years ago when I lived at home. I got a few traffic citations and an at-fault accident and they told my parents they won't cover me as I'm "high risk". They still contact me asking me to switch (my parents bought a life insurance policy in my name a long, long time ago so they have my contact info). I ignore them or if they catch me, I remind them I wasn't good enough for them years ago....

 

[Leo99]

Any real estate friends? Some real estate companies manage rental properties. They'd know which companies like to insure rental properties.

 

[Andrew1972]

Quit making claims except for expensive stuff.

Possibly clogged toilet was expensive but if under $10k self insure. Bullet hole could not have cost much to fix.

Good luck.

 

[AZjeff]

Originally Posted by hallstevenson
We use Erie for our home and cars. .


We had Erie for years when we lived in Pa. They only do business in 13 states in the east. OP's house is in Va so it's an option.

 

[csandste]

Have State Farm for rentals and Auto Owners for everything else. I've learned to get big deductables and (yelling) NEVER FILE SMALL CLAIMS. Those two small claims will probably cost you a lot. Plus bullet holes probably carry a bad vibe.

 

[csandste]

double post. sorry...

 

[Fawteen]

The type of insurance that you're looking for is a landlord policy. I use Foremost for all of my properties.
A landlord policy will usually run about 15% higher than a regular homeowners policy, but there are options for things like loss of rental income, other structure, broad form/special form, etc.

Get the highest possible deduction and don't nickle and dime the insurance company. As you found out the hard way it's a red flag and they'll drop you quickly, especially for something involving firearms (like a bullet hole).

Regular homeowners insurance most likely won't cover a property being used as a rental unit.

 

[NYSteve]

Out of state rental I would want the best insurance company I could find. My opinion this is Chubb.

 

[pandus13]

I have used Farmers and Safeco. No claims.

 

[Virtus_Probi]

Is there a chance SF would reconsider if the OPer told them he was booting the tenants?

 

[JLTD]

Thanks for the posts so far -- and apologies for my mistake, I covered the bullet hole out of pocket, the 2nd claim was a burst pipe under a sink. These two claims weren't small, and although I'd love to take the responsibility under $10k, it's not currently in the cards; those two claims together were about $10,000 paid by SF, and $2000 deductible paid by me.

 

[Hall]

State Farm doesn't specifically care about the value of the claim, they simply don't want to be bothered with the claims process. If you call them and say "I had some damage from 'incident' but I'm considering my options before I formally file a claim", that's considered a claim by them even if you don't follow through. Too many "claims", whether processed or not, they'll drop you.

 

[PimTac]

Is it possible they are declining to insure because of higher than normal problems in your Zip code? Sometimes it's not the individual but the surrounding neighborhood.

 

[Fawteen]

Originally Posted by JLTD
Thanks for the posts so far -- and apologies for my mistake, I covered the bullet hole out of pocket, the 2nd claim was a burst pipe under a sink. These two claims weren't small, and although I'd love to take the responsibility under $10k, it's not currently in the cards; those two claims together were about $10,000 paid by SF, and $2000 deductible paid by me.


I personally wouldn't file a claim for anything less than a catastrophic issue. Small issues like a burst pipe is a cost of doing business. Tenant damage comes out of their pocket or deposit. Either way, the tenant ends up paying either through future rent increases or directly to pay for damage. The management company that I now use performs annual inspections of each property to check maintenance and look for damage.

I think I've filed 5 claims in the almost 40 years of owning rental properties. Two were for roof damage during hurricane Michael. The others were for a fire, another roof issue, and a loss of rental income because of a death in the unit-the death was suspicious but turned out to be natural causes. It still keeps the unit tied up for a few months during the investigation and getting things cleaned up.

 

[BMWTurboDzl]

USAA back in the day, but overall insurers aren't in the business of consistently paying claims.

 

[alarmguy]

Your first issue is being loyal to any company and most of all any insurance company. As a previous business owner though I know the process isnt easy, ironcally we stay with State Farm as well for business.

Everyone should get new insurance quotes every year which I do for everything in my personal life.
I never understood being loyal to an insurance company, why? Makes no sense.

 

[Fawteen]

Originally Posted by alarmguy
Your first issue is being loyal to any company and most of all any insurance company. As a previous business owner though I know the process isnt easy, ironcally we stay with State Farm as well for business.

Everyone should get new insurance quotes every year which I do for everything in my personal life.
I never understood being loyal to an insurance company, why? Makes no sense.


We haven't changed insurance companies in a couple of decades. Our rates rarely go up (other than adjusting for inflation) and our rates are at or less than competitors because we have zero claims for our personal home/auto insurance and minimal claims for the real estate business.

So why should we waste time shopping around when we already know we're getting excellent rates and we're happy with our independent agent and insurance companies? To maybe save $10 or $20 the first year with another company's teaser rate, only to watch it skyrocket again in year 2 or 3? No thanks to that hamster wheel.

 

[alarmguy]

Originally Posted by Fawteen
Originally Posted by alarmguy
Your first issue is being loyal to any company and most of all any insurance company. As a previous business owner though I know the process isnt easy, ironcally we stay with State Farm as well for business.

Everyone should get new insurance quotes every year which I do for everything in my personal life.
I never understood being loyal to an insurance company, why? Makes no sense.


We haven't changed insurance companies in a couple of decades. Our rates rarely go up (other than adjusting for inflation) and our rates are at or less than competitors because we have zero claims for our personal home/auto insurance and minimal claims for the real estate business.

So why should we waste time shopping around when we already know we're getting excellent rates and we're happy with our independent agent and insurance companies? To maybe save $10 or $20 the first year with another company's teaser rate, only to watch it skyrocket again in year 2 or 3? No thanks to that hamster wheel.


If it works for you that is great.
But something about your sentence I would question. You say your insurance is "at or less then competitors. "
But then go on to state "why should we waste our time shopping around?"

So which is it?

My response was to the OP, if your happy with your company and do not wish to shop around and get on the "Hamster Wheel" switching companies that is fine.
Other people (like me) love to shop around for all things in life, I find it fun and the biggest place I save money is on insurance right on my desk top computer.
Best price always wins, EVERY year, as soon as I find a better price, good bye to the old company, even before the insurance term is done with the currect company.

Whatever works for anyone, I have no problem with that. Some people may prefer to buy only Shell gasoline at any cost, fine with me or any other product.
For me, price wins when its the same product'