Posted by Rick Vesole on April 21, 1999 at 23:28:32:
That is ridiculous for the agent to say he can only insure it for purchase price. In reality, you have the choice of insuring for actual cash value up to replacement cost.
Insurance Woes… - Posted by Duane
Posted by Duane on April 20, 1999 at 23:05:25:
About a month I bid on two HUD foreclosures, apparently I did not bid low enough because both bids were accepted! I have already closed on one, a nice little brick home in a stable part of the city, the only problem is it’s a 1 bd. I knew this going in and figured if I could not sell it after fix up, I was not opposed to renting it, bought for $34k, everything went fine.
The next house is a 2bd just a couple of blocks up the street from the first, not as nice of an area, but pretty close. Bought for $16k, obviously needs more work, but comps come in at about the same as the first one (low 40’s). Anyway, I’m having all kinds of trouble finding insurance for this home. My American Family agent said they can’t do it because it’s below $25k, they also said the Missouri Fair Plan that they send high risk homes to won’t do vacancies or rentals. I finally found one guy that said he would write the policy for $600, which is 3 times higher than it should be.
Has anyone encountered this problem before? Thanks
Re: Insurance Woes… - Posted by Rich
Posted by Rich on April 21, 1999 at 10:49:47:
I’m in MD and I recently purchased a rehab property and my insurance agency is a multi-insurance carrier. If you want something insured, they find an insurer. I just received the policy and it cost me $750 per year to insure it for $50,000. The insurer turned out to be Lloyds of London. Check with insurance brokers in your area. Good luck. - Rich
Re: Insurance Woes… - Posted by BR2
Posted by BR2 on April 21, 1999 at 07:50:59:
My rentals also run around $600 per month. Prior to renting I could only get fire insurance. This is thru State Farm Ins.
Good Luck!
Re: Insurance Woes… - Posted by JPiper
Posted by JPiper on April 21, 1999 at 01:46:15:
Insure the property for $30K.
JPiper
Re: Insurance Woes… - Posted by Millie I.
Posted by Millie I. on April 21, 1999 at 01:10:42:
Duane,
Most of my properties are in lower middle class area. They are all insured as of the day of closing, including the REOs that need some work. My insurance company is State Farm Insurance. They will give you a policy, but the premium is higher as you move further into ‘not so good’ areas. A 2BR in such area will easily go up to $525+ a year. You could try to reduce the premium by raising the deductibles to $1000, use dead-bolts and smoke alarms to reduce it a few more dollars. Hope this helps.
Good Luck,
Millie I.
Tried that… - Posted by Duane
Posted by Duane on April 21, 1999 at 11:49:07:
My agent said they could only go off of the purchase price. Another agent was telling me that they are probably not making any money off the deal, so they don’t want it. Someone will want it after I transfer my other policies to them though!
State Farm Insurance. - Posted by Bob-MD
Posted by Bob-MD on April 21, 1999 at 07:21:26:
My experience with State Farm is that they won’t insure a vacant house that is being rehabbed. They will insure a rental that is occupied.
Bob
Re: Insurance Woes… - Posted by D.Henderson
Posted by D.Henderson on April 21, 1999 at 07:00:41:
Hi !
Had the same problem myself with older homes and more than one layer of shingles.
I’m in Texas and talked to National Lloyds (Gloria)
817-645-6641. I did not use them because they are about 200 miles from me but They didn’t have a problem with that. Very nice and VERY resonable. They might have an associate in your state. Good Luck!
D.Henderson