Pennsylvania Landlord Insurance
Looking for a quality Landlord Insurance program that has great coverage and very competitive rates? Do you have an above average property? If so, I have the solution that you are looking for.
I have been writing multi-family insurance for over 20 years.
During that time I have learned that basing any program on one or two insurance companies is dangerous business for many reasons. In order to offer you the best programs available I regularly add additional insurance companies to my list of insurance carriers that I directly represent.
I have the ability to insure your properties, whether you have 1,000's of units or just a couple of smaller properties. We work with "A" rated insurance companies that want your business. While I can write just about any apartment building, this program is designed for the property owner that takes pride in their property and either is a hands on manager or you use a quality property manager.
Valuation - One Of The Most Common Topics Of Conversation
There are several valuation companies doing building valuations and the top 3 in this area are ISO, MSB and E2value. The insurance company wants to offer a low rate for the person who keeps a well cared for property and insures the building to a value high enough to cover all their costs after a total loss. So there are two opposing factors, the first is the property owners awareness of market value and perhaps competitive bidding values both of which don't apply to insurance loss situations. Yes following a major loss you may get bids from different contractors to do the work, however, if they are a good contractor they already have work lined up for the next 3-9 months. If they take on your job they either have to put off other work, hire additional employees or pay overtime. They will only do this if they are going to make more money on your job than their normal competitive bid jobs they already have lined up. The other item increasing your replacement cost is that of debris removal. The Pennsylvania Rental Property Insurance policy says that additional coverage for debris removal is included in the building limit. So, if you have that major loss and you have to clean up the site before you start to rebuild that cost is to be included in your building limit.
The building limit typically needs to be higher than you think it does, but I also see times when the Replacement Cost estimate is inflated by using a higher construction quality than the buildings actual construction warrants.
Tenant Liability Issues
One major area that many of you are missing when it comes to your Landlord Insurance program is the liability of your tenants. What??? Yes that is correct, many of you are absorbing the cost of your tenants liability in your insurance policy!!! The large property owners understand this and that is why they all require their tenants to carry liability insurance and they check it on a regular basis. Why is this such a big deal you ask? 20-25% of the losses that you occur are the result your tenants liability. If you are requiring that your tenants have insurance, and you stay on top of it your insurance costs will go down! Some of my companies are offering immediate discounts if you are using a 3rd party insurance tracking service, and over time your rates will go down and likely stay down.
In some cases this will even keep your policy from being cancelled. Here are actual claims that I have seen on Rental Property Insurance policies that I wrote; Tenant causes fire while cooking (this is the most common tenant caused loss), tenant causes fire from smoking (dumping ashes into a trash can, smoking in bed, cigarette in planter starting plant & building on fire), tenant has party where excessive alcohol is consumed and liability losses occur (two guys get in a fight and break banister on balcony and fall to ground below, guests trip and fall and hurt themselves and come back on landlord).
I can perform the tenant tracking for you at a very reasonable price. Just ask me about that service.
Are You Doing A Great Job Maintaining Your Properties?
A well maintained PA Apartment Building has many advantages. Some of these are:
- Tenants are happier and less likely to treat the property poorly, less likely to sue you, they will bother you less.
- Tenant turnover is much lower.
- The quality of the tenant you attract is much higher.
- Lower likelihood of trip and falls
- Lower likelihood of property losses
- Insurance companies will give you lower insurance pricing.
- Occupancy rates are higher.
- Rents are higher.
- And more than I can mention here!
Having a well maintained apartment building really is a win win scenario!
Rental Property Insurance Doesn't Have To Be Expensive
I have direct appointments with multiple insurance companies that want to insure Apartment buildings.This allows me to compare pricing with multiple insurance companies and find you the best pricing available for your property. I insure Apartment buildings in local areas such as Lancaster PA, Mount Joy PA, Harrisburg PA, York PA, Manheim PA, Ephrata PA and all across Pennsylvania.
Give me a call today to see how I can improve your current asset protection program. I look forward to working with you.
Here are two reasons to get started right now!
- First, this is already on you mind so why spend time rethinking about this later.
- Second, we will help you secure a policy that will reduce your likelihood of having an uncovered claim.
We look forward to working with you.
Joe Hershey, CPCU, CIC