Additional Coverage for Your Home Insurance

Homeowners Insurance policies, whether for your own home or a rental property, are very specific about what they cover, but oddly enough they throw in a couple of “extras” or additional coverage. What are those? Let’s take a look!

Home insurance Safford, AZADDITIONAL COVERAGE

There’s free stuff in my insurance policy? Yes.

So, great news there are only four Homeowners Insurance Coverage parts, so that part was simple, but next comes the complicated part; additional coverage (s). Yeah! Now for any of you that might be catching the sarcasm in that last comment, there are actually some good things in here. Every policy is different so here are some of the most common and important:

  1. Debris Removal – Have you ever seen a fire? Walls may still be standing but completely destroyed. What knocks those crumbling walls down and hauls them away? Debris Removal! See, good stuff.
  2. Trees, plants, shrubs – Not a lot here, but you can usually get coverage up to $250-$500 or so per tree. Obviously there will be limits, but landscaping can be expensive.
  3. Fire Department Service Charge – Sweet, nice that you don’t have extra stuff, like cost of fire department services coming your way.
  4. Collapse – This is an odd place to have this coverage, but it’s nice that they add it.
  5. Glass – Sweet.

Again, there is more to each of these, but nice that they add them and make them available as additions for your homeowners insurance. Start your quote online or call us for an immediate quote 1-877-784-6787.

Manufactured Home Insurance – Why Is It So Expensive?

Seriously, have you ever compared a manufactured home insurance policy with that of a “stick built” home insurance policy? The cost can be crazy. Why? Insurance rates are based on the expected losses, and in short the expected losses from a manufactured home are higher than a traditional home. Let’s look at a couple of examples.

Fire – So while, there is not more of a likelihood that your manufactured home policy catches on fire and the “stick built” home, the damage a fire would cause is much greater on a manufactured home. Remember, if there is significant damage to a manufactured home, you can’t tear down part of the home and rebuild that part, you are looking at replacing the entire home. So the expected losses increase.

Wind – Most companies that insure manufactured homes will ask if the home is “tied down.” This is a big difference between manufactured homes and stick built homes, the foundation. Because of the relative light weight of a manufactured home, it is more likely to sustain wind damage. Rather than the loss of a few shingles, you could lose the whole roof.

Also, with manufactured homes if there are “attached structures” like “Arizona Rooms,” awnings, carports, etc. these can cause significant damage to a manufactured home. Check out the study and Video American Modern did regarding the effects of High Winds on Manufactured Housing. In fact, there are several large insurance companies that will insure manufactured homes, unless you have an attached structure, once they find out you have one of these, you are no longer “eligible” for their program. Fortunately, we have several partners that offer coverage for manufactured homes with or without attached structures.

There are other examples, the point is the higher the possible losses, the higher the insurance costs. Fair or not, insurance is about the numbers.

Insurance For 10 or More Rental Homes

Successful real estate investors understand the concept of Rinse and Repeat. That is, finding a real estate investing method that works for them, implementing it successfully, and doing it again and again–increasing cash flow and building a legitimate business. For those of us that believe the buy and hold rental model is best and hold 10 or more rentals, insurance can flat out be a pain in the butt. Multiple policies, managing renewals, is just not a great way to spend time when you have a business to run. Imagine a SINGLE policy with all your properties listed, ONE payment, ONE renewal, less paperwork, fewer headaches and better prices on insurance. That’s the 10+ program. It has great coverage options including coverage for:

  • Your home and other structure
  • Your business personal property such as appliances and other landlord furnishings
  • Business Income that protects the loss of your rents if you have a covered loss
  • Liability and Medical Payments
  • Service Line Coverage (protection for the utility lines that run to the house)
  • Breakdown Coverage Option (Coverage that can help replace a broken furnace or repair a washing machine)
  • Flexible deductible options for high cash flowing investment businesses

The program is designed for single to six family dwellings that have no more than two stories. While the bulk of the properties need to be these one to six family dwellings, we can also include condos, manufactured homes, and vacant dwellings (for that occasional fix and flip investment) as long as they are not vacant for 24 months. It is easy to see why investors with multiple properties choose to go with this program. It saves money, increasing your cash flow. It saves time, by eliminating paperwork, and provides great protection for your investments! Start simplifying your insurance life with our 10+ program. To get a quote call us to start the process at 1-877-784-8767 today!