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Protect Your Vacant Investment Properties

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Property investors who own rental properties, or who buy, renovate and resell homes, may occasionally find they have vacant properties on their hands. If your property is vacant, it could be a magnet for trouble, attracting thieves, vandals, squatters, even neighborhood kids looking for a place to hang out. Here are seven steps to take to protect your vacant investment properties:

1. Secure the property

Make it hard to get in by ensuring doors and windows have sturdy locks, and keep them locked! If a tenant has recently moved out, have the locks changed or re-keyed. You may also consider reinforcing exterior doors with metal doorjamb or hinge shields in case someone tries to kick down the door.

2. Monitor and maintain the exterior

Check on your vacant property frequently to make sure it’s secure. Keep landscaping tidy by pruning shrubs and keeping lawns mowed. Make sure plants and trees don’t provide hiding spots or cover for thieves or vandals. Remove any mail or newspapers that arrive—nothing says no one is home more quickly than a stack of newspapers in a driveway or an overflowing mailbox.

To guard against fire, remove any flammable debris around the structure, including construction materials, dead vegetation, paper, cardboard, and so on.

3. Light the property at night

To deter thieves and vandals, make sure your property has working exterior lighting, either on a motion sensor or a timer. In addition, have a few lights on timers inside the property to help it make it look like someone is there. These simple measures can make a casual thief or vandal think the property is occupied.

4. Set up an alarm system

In some cases, you may want to set up security cameras or an alarm system to protect your investment property. Even if you don’t have an alarm system, simply placing a sign or sticker saying you do may help to deter thieves.

5. Make friends with the neighbors

If possible, become friendly with the neighbors near your property. They can act as an extra set of eyes and ears when you’re not around. Give them contact information, yours or your property manager’s, to call regarding any suspicious activity.

6. Advertise wisely

While you want potential buyers or renters to know your property is available, you should be careful about how you share information. Don’t share too much with people calling or inquiring online. Some professional thieves locate vacant properties to hit this way. You’ll probably want to leave a For Sale sign up, but you might consider whether leaving a For Rent sign at your vacant property may attract unwanted attention.

7. Carry insurance

Vacant properties and properties being renovated still need insurance coverage, to protect the structures themselves, and your liability as a property owner. You may need a builder’s risk policy that provides coverage for damage to the insured structure and liability coverage during renovation. Or perhaps you need a vacant dwelling policy, which covers properties that do not meet the requirements for a builder’s risk policy, properties that are between tenants, or those waiting for a buyer. If you have any questions about what type of insurance you need…

We can help!

The agents at L & M Insurance Group have years of experience working with property investors, and we’re familiar with the insurance requirements of properties purchased in the name of an entity such as a land trust, LLC, or corporation. We are proud to partner with companies that also understand your needs—like REInsurePro, an insurance program specifically designed with real estate investors in mind.

Please allow us to help you with all your insurance needs including protecting your vacant property. You may reach us by phone (813-672-4100) or contact us online by clicking here. For more than 30 years, L & M Insurance Group has been serving the personal and commercial insurance needs of Riverview, Brandon, Tampa, Apollo Beach, Gibsonton and surrounding communities.

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Simplify Your Property Investment Insurance With REInsurePro

by Posted in Commercial Insurance Tagged , Leave a comment

For property investors with multiple properties, L & M Insurance Group has an insurance program that can simplify how you keep your properties insured. The REInsurePro program writes many types of policies with the specific needs of property investors in mind. Their insurance products offer flexibility and cover a variety of situations, whether you buy to renovate and flip, or own properties occupied by tenants. Take note members of the Suncoast Real Estate Investors Association (SREIA) or similar organizations like the TBREIA or GOREIA—this is a program that could really benefit you!

Coverage options and special features

Basically, REInsurePro puts coverage decisions in the hands of you as the investor. You can choose whether you want actual cash value or replacement cost loss settlement, and which perils to insure against. You can also decide which “bells and whistles” are important to you for your policy. Properties insured for $70 a square foot or more will automatically be insured for replacement cost value. Wind mitigation and 4-point inspections are not needed. All policies provide one million dollars in liability. Once you’ve made a down payment, you can set it up so that your credit card will automatically be billed each month. 

You can include all of your properties on one schedule, even if they are owned by different entities, e.g., Individuals, Land Trusts, or LLCs. You can also add or delete properties as needed, or change the occupancy status or coverage options, without having to cancel and rewrite your policy every time. This means you’ll be paying to insure a property only for the time it’s on your policy.

REInsurePro can cover your:

  • Rental property (up to a 4-unit tenant-occupied building)
  • Renovation/Builders Risk
  • Vacant property
  • New construction
  • Vacation rental property
  • Condo
  • Liability for vacant land

And more!

Get Started Insuring Your Investment Properties

Think the REInsurePro program might be right for you? Please give us a call at 813-672-4100 for more information. And remember, L & M Insurance Group is a full service independent insurance agency. Look to us for all your insurance needs, including home, auto, business, and life. We’ve been serving Brandon, Valrico, Riverview, and other communities in the Tampa Bay Area for more than 30 years.

To contact us online, please click here.

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Understanding Coinsurance

by Posted in Homeowners Insurance, Investor Insuance Tagged , , Leave a comment

One way clients try to lower their property insurance premiums is to buy coverage for less than 100 percent of the value of the property. Within certain limits, this can be effective, though you need to remember that when you buy less coverage than your property is worth, you accept financial responsibility for the remaining value. You also need to know that property insurance policies contain a coinsurance clause, and if you violate it, you could receive a lot less money than you’re expecting if you have a claim.

What is coinsurance?

In the property insurance market, coinsurance refers to the percentage of the property’s total value that a policyholder is required to insure.  Coinsurance requirements differ among insurers, but the typical amount is 80 percent, sometimes rising to as much as 90 or 100 percent. That means if your property is worth 500,000 and your coinsurance requirement is 80 percent, your property should be insured for no less than $400,000.

The purpose of coinsurance is to make sure property owners purchase enough coverage to protect their property investment. If you don’t insure your property for the correct amount and have a loss, even a partial loss, you will get less for your claim than you were expecting, making it more difficult for you to rebuild after a loss. This is why it’s important that you don’t violate the coinsurance clause of your policy.

Do the math

Here’s what happens if you violate your coinsurance clause. Let’s say you have a property worth one million dollars. If you have a coinsurance clause of 80 percent, your property should be insured for no less than $800,000 to avoid violating your coinsurance clause. If you purchase coverage lower than that, say $500,000 for example, all claim payouts will be reduced by a formula for settling losses. Here’s a scenario:

The above-mentioned property is damaged by fire, sustaining losses of $100,000. In determining how much to pay you for your claim, the insurance company will look to see if you have met your coinsurance clause responsibility. If you haven’t, they will take what you insured your property for ($500,000) and divide it by the amount you should have insured it for under the coinsurance clause of your policy ($800,000). They take that number (.625) and multiply it by the amount of your loss ($100,000) to arrive at the amount they will reimburse you for your claim. Like this:

$500,000 ÷ $800,000 x $100,000 = $62,500.

In this case, you would receive $62,500 (minus your deductible), rather than the full $100,000 amount of the loss. You’re being penalized $37,500 for violating your coinsurance clause.

We understand that coinsurance can be confusing, so please feel free to ask your L & M Financial Group agent any questions you have about the coinsurance clause of your property insurance policy. We’re also happy to help you review your current policy, or offer you a quote for a new policy if you need one. You may reach us by phone at 813-672-4100, or click here to email us.

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Property Investors: Do You Have the Right Insurance?

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As a property investor, your insurance needs are more complex than the average homeowner. Some insurance agencies are unfamiliar with the requirements of investment properties, particularly ones purchased in the name of an entity such as a land trust, LLC, or a corporation. At L & M Insurance Group, we have a lot of experience working with property investors and others with complex real estate insurance needs.

Types of Investment Property Insurance

Whether you intend to buy an investment property and flip it, or install a tenant, we represent many companies who are happy to insure your investment property. These companies offer a variety of policies tailored to the needs of property investors, including:

 

DP3 Dwelling Fire—Dwelling Fire policies provide coverage for residential buildings that are not owner occupied, but are usually rented to others. The most popular version of this policy is called a DP3. It provides coverage for the building’s structure from all perils except those specifically excluded in the policy, as well as personal liability and loss of use. It is also a replacement cost policy, and we consider it one of the best non-owner occupied policies on the market.

Builder’s Risk—This policy provides coverage for damage to the insured structure and liability coverage during a renovation period. We can write these policies in terms of two, three, four, five, six, or 12 months. Renovations need to improve the property by 50 percent of its value to qualify for a Builder’s Risk policy, so if your property renovations are only cosmetic, you may insure your property with a Vacant Dwelling policy (see below).

 

Vacant Dwelling—In addition to being appropriate for a property that doesn’t qualify for a Builder’s Risk policy, Vacant Dwelling also provides coverage for property investors who own rental property and are between tenants or are trying to sell a property no one lives in.

 

Ready to insure your Property

So whether you’re a property investor who buys and flips homes or one who rents to tenants, we’ve got you covered, even during the renovation process. Please call L & M Insurance Group at 813-672-4100 or email us if you’d like to know more about how we can help you protect your investments. For more than 30 years, L & M Insurance Group has helped customers within Riverview, Brandon, Gibsonton, Apollo Beach and the Tampa Bay area.

Does It Really Matter Where You Buy Insurance?

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Choosing the right Insurance Agent Can Make a big difference in your Insurance Rates

Does It Really Matter Where You Buy Insurance?

Yes, and making the wrong choice could be costing you money, service and coverage protection. Purchasing insurance for your car, home, business or life is too important to treat lightly.

Independent Insurance Agents Give You Options

There are basically three ways to purchase insurance. The first is through captive agents. Captive agents sell for just one company, they generally have a familiar name that has been built up with a tremendous amount of advertising, but in the end, you are just buying a brand. They will provide one quote from one company. The second way to buy insurance is with a telephone representative, and once again, you are getting a quote from a heavily advertised brand name with very little choice. Finally, the third way is through an independent insurance agency like L&M Insurance Group–this is the way that will offer you the most choices in coverage options and prices.independent insurance agent

 

 What Are The Benefits Of Working With An Independent Insurance Agency Like L&M Insurance Group?

 

  1. L&M Insurance Group represents multiple insurance carriers. In fact, we represent more than 40 different insurance companies. With this many carriers we can insure any risk you bring through our door. For instance, if you called us today for a quote on your auto insurance, we would be able to provide rates from more than 15 different companies and another 20 companies if you needed us to insure your home. By doing this we can provide the best combination of rate, service, company strength and coverage options of any captive agent or telephone representative anywhere.
  1. L&M Insurance Group is on your side. Do you ever wonder who represents YOU and YOUR needs when it comes to insurance? Don’t wonder anymore. WE do.   WE work for you, not the insurance company. We periodically review your coverage to make sure it meets your changing needs and to make sure you are getting the best value for your money. You can’t say that of a telephone representative or a captive agent–they are both employees of the insurance companies.
  1. L&M Insurance Group is your trusted insurance professional. Need questions answered about SR22 insurance, replacement cost coverage vs actual cash value? Need help understanding wind mitigation reports, 4-point inspections or commercial general liability? Call and ask! Try that with a telephone representative who is evaluated on one criteria only–did he/she SELL you insurance.
  1. L&M Insurance Group can do it all. That means whether you need car, renters insurance, commercial auto, homeowners, general liability, life or builders risk–we can help you. It’s nice to have all your insurance taken care of by one professional.
  1. L&M Insurance Group will always treat you like a person. You are not a number to us.   Customer satisfaction is paramount here. We return calls and go out of our way to make each encounter with our agency a positive experience.

L&M Insurance Group: Your Local Independent Insurance Agency

Proudly serving Brandon, Riverview, Tampa and surrounding cities in Hillsborough County and beyond.

Contact L&M Insurance Group today for a free review of your insurance needs. Partner with us and you won’t regret it. 813-672-4100. Click this link to email us.

Florida Independent Insurance Agents

How To Insure Your Investment Properties

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Tampa and Brandon Investment Insurance Experts Share Tips on Protecting your Investment Property

Tampa property investorsIf you own investment properties, you will want to make sure you have the right insurance coverage for your situation. Property insurance can protect you from property loss and liability lawsuits, and is an important part of successful property investing. Read on for an explanation of the various types of insurance you might need.

Who needs a Vacant Dwelling policy?

If you have an investment or primary home that has been vacant for 60 days or more, you need a Vacant Dwelling policy.

Who needs a Builder’s Risk policy?

If you’re doing renovation and increasing the value of your home by 50%, your property qualifies for the builder’s risk program.

What type of policy do I need to insure my tenant-occupied property?

There are two types of policies to choose from to insure your property correctly.

  1.  DP1 is a bare-bones, policy offering actual cash value coverage on your personal property.There is no burglary and theft coverage or coverage for accidental water damage. If your air conditioning unit is stolen, this policy will not pay for it to be replaced. If your plumbing leaks and floods the home, there is no coverage.
  2.  A DP3 policy covers everything the DP1 does except that it pays replacement cost instead of actual cash value. It also pays burglary and theft as well as accidental water damage. To protect your property properly, the DP3 is the better choice.

What if my property is in the name of an LLC or trust?

If your property is held in a trust or LLC , you must buy a separate liability policy.
More insurance carriers are available to choose from if your property is owned by an LLC rather than a trust.

We at L&M Insurance understand how properties held in a trust or LLC need to be insured.
In order to insure the property with the company that has the lowest rates and best coverage for you, we need complete and accurate information about the LLC or trust. You will get the most accurate quote if you are able to answer our agent’s questions fully and honestly. If possible, it helps us when insuring the property to have a copy of the trust.

Can I as an investor write multiple properties on the same liability policy?

Yes, as long as they are all in the same name, whether it be in an individual’s name or in the name of an LLC or trust.

When do I need a flood policy?

If your property is in a flood zone and you have a mortgage, you are required to have a flood policy.

What is the difference between sinkhole coverage and catastrophic ground coverage collapse?

If you have a sinkhole claim you can live in the home while it is being repaired. With catastrophic ground coverage collapse, your home has to be damaged to the extent that it is not livable.  Catastrophic ground coverage collapse is included in all DP and H03 policies.

Can I insure a property that has had a sinkhole claim?

Yes, once the repair has been signed off on by an licensed engineer.

When do I need a four point inspection in order to bind coverage on my new purchase?

If your property is older than 30 years.

How can a wind mitigation help me?

If your property is an older home and you have replaced the roof, a wind mitigation can save you hundreds on your property insurance. You can get a four point inspection and a wind mitigation for $95.00.

Please email us or call our office at 813-672-4100 with additional questions.

To get a quote right away through our National Real Estate Insurance Program click here.