Eagle Eye Contents — Spring 2007

You have a chance to buy that income producing property. The price is right and you can rent it out and cover the cost of ownership. You are now a landlord. It’s a 2 family, or a couple of store fronts in the same town you live in. You close on the property in 2 days and you call us to insure it, shouldn’t be a problem right? ……well?

Insuring property, that is owner occupied, is usually an easy task. Property that is not lived in or occupied for business by the owner is another story. When the owner is on the premises, companies feel that owners are there daily to protect their property and are more willing to offer insurance and at a lower price. When the owner is not there daily, many companies wish to not write this kind of insurance. Companies that do write these rental properties are looking for properties that are well maintained and cared for by their owners.

We have a couple of ways to insure these properties, a simple Fire Policy that covers the physical structure and offers general liability coverages, or a more sophisticated Business Owners Policy that includes loss of rents and other coverages.

• Here is a list of some of the important things that a company considers when they offer to quote rental properties;
• Have the mechanical systems been updated within the last 20 years; electrical, roof, plumbing, heating.
• Well maintianed property, no peeling paint, no clutter, drive-ways & walks in good repair, interiors of apartments, clean and in good repair.
• If a multiple story property, a second means of egress.
• Compliance with local life/safety codes, smoke and CO2 detectors
• Railings on all stairs and porches to proper height
• Formal leases with tenants and tenants that have their own insurance policies
• If a housing unit, no exotic pets, trampolines or playground equipment, grills on porches, woodstoves or fireplaces.
• No undergraduate students
• No short-term rentals
• Insurance to Value – the cost to replace the structure is the amount on the policy.

While these items in most cases are not much different than those requirements for owner occupied properties, many times we see that owners of rental properties sometimes defer on regular maintenance and the condition of their properties is not as good as companies would like, making our securing a competitive quote difficult.

We are happy to take a look at your property early on in the process if you are buying a new to you property or if you currently own it and are looking to secure insurance through our agency weeks prior to your renewal.

Good rental stock is important to the local economy, and we are happy to place your insurance coverage.