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#Post#: 737--------------------------------------------------
More about insurance
By: Arks Date: December 6, 2024, 11:08 am
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I reported recently that the insurance on one of my buildings (I
have rentals in two old buildings downtown) was $5,000 2 years
ago, went to $8,600 this year, and the quote they gave me for
2025 was $10,000+.
I checked with another broker, and after a month of asking
questions they finally presented me with a quote of $12,000+.
And this for a building with fire sprinkler system throughout,
new roof, all new wiring and plumbing. It should be pretty low
risk for the insurance company.
So I went back to my current broker and asked what I can do to
reduce the 2025 premium. In the end I raised my deductible from
$2,500 to $5,000, and eliminated 4 optional coverages I didn't
even I know I had:
[list]
[li]Ordinance or Law coverage: apparently this is coverage that
pays for modifications to the building if some new city
ordinance or law requires, I don't know, putting in ramps or
something[/li]
[li]Bed bug coverage: never had the problem and probably never
will[/li]
[li]Squatter's coverage: I guess this is in case someone won't
leave the room and won't pay. Not a problem.[/li]
[li]Equipment breakdown coverage: If the dryer breaks down, I'll
just repair or replace. Didn't know I had coverage for
this![/li]
[/list]
After these changes we got my 2025 premium down to $8,100, a few
hundred dollars less than I paid in 2024! I'm happy! Not real
happy because it's still a small fortune, but a lot better than
$10,000+!
#Post#: 738--------------------------------------------------
Re: More about insurance
By: Generic Date: December 12, 2024, 3:40 pm
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Wow. Didn't even know they had these kind of coverages. We
assume that any appliance that dies is just a write-off. We have
a dryer that doesn't match the washer. And that means this is
our 3rd dryer and our 2nd washer. Meanwhile, the set we have
downstairs (small set) is on it's 15th or 16th year. We use the
one upstairs twice a day in the summer, sometimes more. The one
downstairs, twice a week to 3 times. We wash all the rags
downstairs.
#Post#: 739--------------------------------------------------
Re: More about insurance
By: JimBoone Date: December 13, 2024, 4:08 am
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[quote author=Arks link=topic=128.msg737#msg737 date=1733504886]
So I went back to my current broker and asked what I can do to
reduce the 2025 premium. In the end I raised my deductible from
$2,500 to $5,000, and eliminated 4 optional coverages I didn't
even I know I had:
[list]
[li]Ordinance or Law coverage: apparently this is coverage that
pays for modifications to the building if some new city
ordinance or law requires, I don't know, putting in ramps or
something[/li]
[li]Bed bug coverage: never had the problem and probably never
will[/li]
[li]Squatter's coverage: I guess this is in case someone won't
leave the room and won't pay. Not a problem.[/li]
[li]Equipment breakdown coverage: If the dryer breaks down, I'll
just repair or replace. Didn't know I had coverage for
this![/li]
[/list]
[/quote]
Still sounds extra expensive as if Arks is classed as a large
hotel. I don't claim to have real knowledge but a few comments
from my understanding.
Ordinance of Law: My understanding, IF I had a damage claim,
this would cover required updates to meet current
code/standards.
Squatter's coverage: My understanding, if a guest stays more
that 30 days, they become tenants rather than guests, their room
becomes their home. Doesn't sound like our type of operation but
might be true in large hotels.
Equipment breakdown: This too sounds like a large facility where
one might operate a $50,000 washer or dryer that would be
repaired rather than replaced.
Anyway, old guys two cents worth.
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