combine primary home insurance with rental properties?? (tenant, investments, landlord)

[heartdurhamnc]

I am asking this for a friend. He combined his primary home policy, cars and 3 rental properties. About 2/3 yrs ago one of his rental property had a major leak on the 2nd floor. He filed a claim about $25k. His premium went up.

Which is better get 2 separate policies one for his primary resident and the other for the rental properties. I told him just because he had a claim does not mean his rates will be high with other companies. Why do you all think?

[MrRational]

Originally Posted by heartdurhamnc

Which is better get 2 separate policies one (for personal) and the other (for investments)?

Separation makes the usual sorts of things simpler.

But even with that, the far more important issue is having adequate levels of coverage,
deductibles you can afford and an Umbrella policy.

[chb119]

With three he might want to start looking at LLC's to shield himself if something goes wrong in a rental. Separation also creates levels of protection.

For me, I have separate policies, one for my home, one for my rental (only have 1) and an umbrella for back-up.

[mathjak107]

we use landlord insurance on the rentals and homeowners when we have a home to indsure .


never use homeowners to cover a rental . they are very different in how they work .

homeowners is for owner occupied . it has everyone in your household covered as an insured .

in the case of a tenant vandalism , theft or arson wold be considered an insurance job as the tenant is an insured like your family is .

landlord insurance breaks that link . i found out the difference the hard way .

landlord insurance was a bit more .

don't forget your insurer knows all about you , they have your insurance score . they know nothing about your tenant

[zmcgee]

Originally Posted by chb119

With three he might want to start looking at LLC's to shield himself if something goes wrong in a rental. Separation also creates levels of protection.

For me, I have separate policies, one for my home, one for my rental (only have 1) and an umbrella for back-up.

This is probably the best way to go about it. Even if he doesn't want a LLC, (it would definitely protect him) a policy for the rentals that is separate from his personal home is a great idea. An umbrella would be nice too, and might be cheaper too if the LLC has the risk and not himself.

[heartdurhamnc]

Originally Posted by mathjak107

we use landlord insurance on the rentals and homeowners when we have a home to indsure .


never use homeowners to cover a rental . they are very different in how they work .

homeowners is for owner occupied . it has everyone in your household covered as an insured .

in the case of a tenant vandalism , theft or arson wold be considered an insurance job as the tenant is an insured like your family is .

landlord insurance breaks that link . i found out the difference the hard way .

landlord insurance was a bit more .

don't forget your insurer knows all about you , they have your insurance score . they know nothing about your tenant

To clarify he did not use homeowner insurance to cover rental. An example all the policies are under X insurance company. 1 policy for his home one for rental a another for rental b and another for rental c.

My question is it better to use X insurance for homeowner and cars insurance and Y insurance for the rental properties or just have all of them under X? Is it any cheaper?

[mathjak107]

in the end any and all claims will be in your clue report . while it is up to your insurer as to what they will do as far as increasing or dropping you , if you shop for insurance all property under your ss number will come up and all claims paid out count as far as clue goes .

in fact claims on the property made by a previous owner can count against you . clue follows the property as well