Increase in insurance

[KHS445]

If the insurance company decides/proves you have underinsured your property, you will fall into what is called a co-insurance situation whereby you and the insurance company each are responsible for a percentage of the loss beginning with dollar one following your deductible. Generally, in these instances the insurance company will not send you a check for any damages until the repairs are made and billed. Meaning you will have to fork over your share of the loss at the time of the repairs. This would include securing the property, any required cleanup, loss of income, tenant damages you may be held liable for, etc.. No time to wait for a loan or for FEMA to decide to act.

Personally, when my insurance policies are due for renewal, I send my agent an email requesting that the insurance company review my coverage and make recommendations as to any changes in the amount and type of coverage. That way I am fairly comfortable my coverages are up to date, and I have the insurance company on record with their recommendations. In the event of a loss, if the insurance company tries to hit me with a coinsurance argument, I can refer them back to the correspondence and say you are the experts regarding insurance coverage, and I followed your recommendations.

Depending on the value of your property the couple of hundred or even thousand dollars you save may feel like a victory/savings in the short term but will come back to bite you 100-fold in the event of a loss. Besides as you are undoubtedly aware, especially in your claimed tax bracket, the cost of insurance is tax deductible, the Government (Biden & Newsome) are subsidizing your insurance premium. So, a $100 increase in premium is probably only costing you $60 or less out of pocket. Pretty good investment in my mind.

But per usual you will do you and then complain when your ill-conceived plan to save a buck backfires.

 

[glenn walker]

His Property is not in a Flood Zone or near water and the only water damage is coming from the 80 year old water main pipes that keep breaking- I have no idea why he keeps talking about FEMA

 

[Terrel L. Shields]

Estimate the depreciated value of the building and insure that rather than insuring the replacement cost. My barns are valued at their salvage value (basically they have value in use but little market value, so the "insurance" simply cleans up the site with very little left over.) So I am going to be out 100% to replace the barns...but they are at the end of their life (70 and 50 years old respectively) and obsolete design so I would probably not even "replace" either one. Just clean up the site and build a new barn that will be much larger than either one.

 

[Fernando]

If the insurance company decides/proves you have underinsured your property, you will fall into what is called a co-insurance situation whereby you and the insurance company each are responsible for a percentage of the loss beginning with dollar one following your deductible. Generally, in these instances the insurance company will not send you a check for any damages until the repairs are made and billed. Meaning you will have to fork over your share of the loss at the time of the repairs. This would include securing the property, any required cleanup, loss of income, tenant damages you may be held liable for, etc.. No time to wait for a loan or for FEMA to decide to act.

Personally, when my insurance policies are due for renewal, I send my agent an email requesting that the insurance company review my coverage and make recommendations as to any changes in the amount and type of coverage. That way I am fairly comfortable my coverages are up to date, and I have the insurance company on record with their recommendations. In the event of a loss, if the insurance company tries to hit me with a coinsurance argument, I can refer them back to the correspondence and say you are the experts regarding insurance coverage, and I followed your recommendations.

Depending on the value of your property the couple of hundred or even thousand dollars you save may feel like a victory/savings in the short term but will come back to bite you 100-fold in the event of a loss. Besides as you are undoubtedly aware, especially in your claimed tax bracket, the cost of insurance is tax deductible, the Government (Biden & Newsome) are subsidizing your insurance premium. So, a $100 increase in premium is probably only costing you $60 or less out of pocket. Pretty good investment in my mind.

But per usual you will do you and then complain when your ill-conceived plan to save a buck backfires.

Thank you for your perspective. I didn't know it was so complicated. I pay the premium for $1 million and if destruction happens, it makes sense all insurance owes me is $1 million.
I wanted more options instead of needing full replacement cost from insurance company.

 

[glenn walker]

Thank you for your perspective. I didn't know it was so complicated. I pay the premium for $1 million and if destruction happens, it makes sense all insurance owes me is $1 million.
I wanted more options instead of needing full replacement cost from insurance company.

A Commercial building in the Bay Area for $1 Million ? BS there is no such thing because a 1,200 old POS single family home sells for more than that. This must be a large shed or storage building

 

[Fernando]

A Commercial building in the Bay Area for $1 Million ? BS there is no such thing because a 1,200 old POS single family home sells for more than that. This must be a large shed or storage building

Prior post I said for example. I could have said $2 Million. The amount doesn't matter.

 

[glenn walker]

Prior post I said for example. I could have said $2 Million. The amount doesn't matter.

Can we see a photo of the lowest priced commercial building ever found in the Bay Area or is this some POS in the bad part of Oakland -being used for a Taco Cart Storage Site and a homeless center for the vendors LOL

 

[glenn walker]

Can you please lower my Insurance Premiums its a real gem and has just a few water and roof leaks

 

[Fernando]

There was a freeway collapse in Philadelphia. FEMA will be there to help. Even cities and states can count on FEMA when destruction occurs.

 

[glenn walker]

There was a freeway collapse in Philadelphia. FEMA will be there to help. Even cities and states can count on FEMA when destruction occurs.

You sure have no idea how FEMA works. They dont write checks for Old Commercial income property's that are burned down . Hell in some places people have been waiting for 15 years to get their homes rebuilt. If that was the case nobody would carry insurance