Matthew Redding wrote:This is probably a very basic topic for most of you but I have to ask. I just moved out of one side of a duplex where I lived in one side and rented the other side out. I bought another house and will now be renting both sides of the duplex out. I anticipated that since my personal property would not be in one side of the duplex, and therefore not requiring insurance coverage, that my total insurance premiums would go down. They had been running about $1000-$1100/year total for the entire sturcture and my personal property. But my Farmer's insurance agent tells me today that it will actually go up because renters increase the "risk factor" (thought is they care less about the place because it is not their own and are more careless and more likely to burn the place down, for example). I would like to verify this "logic" with some of you more experienced members and am quite open to any recommendations on a new insurance company and/or agent if any would like to offer that up as well. Thanks in advance, Matt
Contact Allstate ask for Landlords Package Policy should be much less than homeowner's policy.
Marsha Bennett (Exclusive Agent)
Another factor is that you were probably carrying coverage for your personal belongings when you lived there in addition to coverage on the structure itself. Now that you're not living there, you can drop the personal property coverage which should save you some money. I would imagine that your insurance agent knows all about this, but... you never know, so double check. That's my two cents.
To bump my contribution to four cents ;-) I'd just encourage you to shop around. Insurance is just like anything else that you shop for. Some policies are better than others. Some policies are more/less expensive than others. Some companies will give you better service than others. Make a few calls, and you'll see what I mean. If I were you, I would shop (get quotes from) among a few different independent brokers who have access to lots of different carriers. That should help you find the best deal. Just be sure as you're shopping that you're comparing "apples to apples" on the coverages between the various policies that are presented to you.
Get ahold of an independent agent that can write for a variety of diff companies, insure property for dwelling only/fire/hazard and consider policy at your investment cost; they will try to sell you replacement cost which can really cost you through a standard lines company. I use Shane Ferrell Agency in Arlington 817-635-4600 Myra is agent.
Hope this helps
Manhattan Plaza6850 Manhattan Blvd, Suite 205Fort Worth, TX 76120