Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-12-2021, 08:29 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Jul 2009
Posts: 1,194
Yep, copy all that.

My issue with insurance cost is not only the hurricane upper, it is the continuing increases to offset additional risk - by the insurance companies.

To your point, the income from the properties is not necessary in any way for lifestyle or income.

Im trying to be logical 😀
stephenson is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-13-2021, 09:13 AM   #22
Recycles dryer sheets
 
Join Date: Apr 2018
Posts: 92
I had 6 single family home rentals in South Florida for the last 10 years and I'm currently in the process of selling them all and buying homes to rent out in PA, which is where I reside now. The insurance rates were one of the major reasons for me selling out of Florida, along with the weather eating at my homes, and the fact that I want to manage all of my properties instead of hiring a prop manager. A prop manager will never care for your rentals like you will.

Also, tenants down in Florida can be rather shifty. I've found it much easier to manage tenants in PA compared to Florida. Florida really does attract some interesting characters. These rentals rent rates range from 1800 to 2500 per month so it's not like it's inner city slums.

I pay on average $600 per year on landlord insurance for each home here in PA. The value of the homes are around $500k.

Do they even have Landlord insurance down in Florida? When I inquired about it last year, my property manager said no, which is why I just carried liability ins policies and I also have an umbrella policy for 1 mill.
JakeinChina is offline   Reply With Quote
Old 10-13-2021, 10:16 AM   #23
Thinks s/he gets paid by the post
 
Join Date: Jul 2009
Posts: 1,194
Jake,

So a bit similar circumstances - I am still close to my rentals, but would certainly trade them via Starker if I relocated.

You maintained only liability then while in Florida? Again, a like circumstance.

I have $3M umbrella now from USAA, but have not yet checked if they will continue this with only liability on each of the properties.
stephenson is offline   Reply With Quote
Old 10-13-2021, 11:10 AM   #24
Recycles dryer sheets
 
Join Date: Apr 2018
Posts: 92
Quote:
Originally Posted by stephenson View Post
Jake,

So a bit similar circumstances - I am still close to my rentals, but would certainly trade them via Starker if I relocated.

You maintained only liability then while in Florida? Again, a like circumstance.

I have $3M umbrella now from USAA, but have not yet checked if they will continue this with only liability on each of the properties.
Yeah I only had liability and an umbrella for total coverage on the rental properties, and I still was nervous haha. If I resided in Florida like you, I honestly don't know what I'd do. Obviously a law suit was my biggest fear, so I thought thru the process of getting sued, and what layers would a tenant have to go thru to get to my assets. You may already know all of this, but their attorney will first hit up your insurance company, which I felt offered a good enough shield. Maybe you can speak with a local attorney who is trustworthy and experienced in asset protection.

I spoke with an attorney my wife met thru church, and he was satisfied with my landlord insurance on each home and 1 mill umbrella policy here in PA. I sold a number of my Florida homes and did a 1031 swap with him, but not with all of the homes.

It sucks. The insurance down in Florida really eats at your income stream. Maybe raise rent if possible as I now hearing from tenants that finding SF homes in South Florida is really tough for one year leases. Many have turned them into Airbnb's if their neighborhood allows it.

50 bucks increase in rents per unit is already $600 per year which might help pay for that expensive insurance coverage. Just a thought.
JakeinChina is offline   Reply With Quote
Old 10-13-2021, 01:15 PM   #25
Thinks s/he gets paid by the post
 
Join Date: Jul 2009
Posts: 1,194
I tend to try and increase rent every two years - but, may change that to account for the insurance environment.

I have a $3M personal umbrella, so that will activate USAA's attorneys first. I would also get a liability policy with each property.

Just off phone with USAA - they tell me they don't cover individual single family homes as no matter the number, they don't consider them commercial, but pushed me off to another company named "Bolt" that USAA would, of course get a fee from referral. USAA rep also noted the onus is on the individual property liability insurer to make certain their insurance fills in under USAA's umbrella. Further, Bolt would cover only if the properties were put into a legal entity structure like an LLC.

So, will go to see a local independent rep and have discussion.

I long for the USAA of yore.
stephenson is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rental Properties - Decisions, Decisions... njonge01 Other topics 12 09-03-2011 08:27 PM
re-fi rental properties knucklehead 61 FIRE and Money 3 03-24-2010 08:16 PM
LLC for rental properties? cardude FIRE and Money 18 09-12-2009 09:01 AM
refi rental properties? knucklehead 61 FIRE and Money 0 12-08-2008 08:57 PM
Sell or Keep rental properties? 5brown1 Hi, I am... 10 04-04-2006 01:09 PM

» Quick Links

 
All times are GMT -6. The time now is 01:59 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.