Vacant Home Insurance
Builders Risk Insurance
Saturday, December 17th, 2011 | Builders Risk, California, Detroit, Flint, Georgia, Illinios, Indiana, Insurance, Landlord Insurance, Manufactured Home, Maryland, Michigan, North Carolina, Ohio, Real Estate, Vacant Home Insurance | No Comments
Example of a Builders Risk policy offered by our agency.
| Product | Builders Risk |
|---|---|
| FEATURES |
|
| COVERAGES |
|
| DEDUCTIBLES | Standard Residential- $500 Standard Commercial- $1000 Higher Options available |
| AVAILABLE BY ENDORSEMENT | Contractors Equipment Equipment Breakdown Environmental Umbrella Workers’ Compensation |
| Wind Buy Back | We now offer Wind Deductible Buy Back coverage on both commercial property and property in the Course of Construction. |
| Premium Financing | 10% Down, 10 Payments |
Challenging Times and Valuable Opportunities:How to Take Advantage of the Current Economic Situation!
Tuesday, December 7th, 2010 | Insurance, Landlord Insurance, Michigan, Mortgage, Real Estate, Vacant Home Insurance | 14 Comments
We are all aware of the terrible shape that our economy was in. While it spelt doom for some, for some it was a great opportunity to invest and expand their horizons, most particularly in the Real Estate Industry.
In Real Estate, still as of now the prices of new properties are low compared to what it was worth some years back. Many markets having shown an improvement of late, so now would be a good time to get in Real Estate before the markets start picking up. In fact, this is a good time to secure your future with real estate.
Two words: Foreclosed properties
Even now there are a lot of foreclosed properties for sale and buying the right property for rental purposes at this time will be beneficial because in addition to bargain prices, you will have plenty of houses to choose from. The higher number of unsold houses and low mortgage values will mean good bargain prices. Furthermore, the strict appraisal process for acquiring a loan that is now in place has helped keep prices low, thus investing into Real Estate is a very good choice at the current economic situation.
Try out in new markets
If you want to truly take advantage of the current situation, explore the non conventional market like in smaller cities where the markets have not started to or are in the process of picking up.
This is because the entry cost i.e. the initial capital required, is low compared to properties in larger cities. This is a good time for you to hone your investing skills.
Look at alternatives
If you don’t think you can have the stamina to become a landlord and don’t want to be bothered tenant troubles, than you can invest in real estate investment trusts, REITs, or buying shares in home building and associated businesses. With REITs, income is acquired through rents and thus the value of REIT stocks increase with increase in rent over time. Furthermore, REITs give you access to large scale real estate projects which are normally not in the reach.
Vacant Homes in Michigan: Things to Consider
Friday, November 26th, 2010 | Detroit, Insurance, Landlord Insurance, Michigan, Vacant Home Insurance | 11 Comments
Vacant homes in Michigan’s leading cities are on the rise, and this is due to an 11% decline in the population in the past 20 years. However, even though the increased supply of vacant homes in Michigan is great news for landlords and tenants alike, it does create some additional considerations for property owners with vacant properties.
If you are a landlord currently looking for a tenant, a big question is this: do I need insurance for my property? In short, the answer is yes – particularly because of the risk of vandalism, break-ins, and of the house deteriorating quicker if it isn’t maintained appropriately. Some would argue that the requirement for homeowner’s insurance if you are a landlord waiting for a renter is subjective – especially if it is likely you will find a tenant in the immediate future.
Indeed, there are some alternatives to consider that will resolve two problems simultaneously. By making your house look occupied, you will reduce the chance of break-ins on the basis that the property appears to be vacant. In addition, should you have any viewings from clients who need an apartment in MI, your property would look more presentable – and the chances of a successful deal being struck would rise.
So – how do you make your property look occupied? Hiring someone to clean the house or maintain the garden is a great start. If you are going to own vacant homes in Detroit over the long-term, the insurance premiums you would have to pay to protect the property would be reduced because of the effort you are making to reduce risk. You might wish to invest in security systems throughout the property such as surveillance cameras and a home sprinkler device – all steps that will be advantageous to security-wary clients you may receive later on.
Should insurance seem like an option you need to consider seriously, do remember that you have the opportunity to compare and contrast the different policies that insurers can offer you. At least if you need to get your vacant home covered, make sure it is with an insurance provider that offers good value for money.
Hopefully, you won’t have a vacant house for too long. However, while you do, make sure that you are insured, as covering the expense of unfortunate circumstances yourself could cost you far more than you might expect.
Why is it so hard to get insurance in Detroit, MI?
Friday, November 19th, 2010 | Landlord Insurance, Vacant Home Insurance | 7 Comments
First and foremost, it is difficult to be profitable in Detroit. We do not have hurricanes, or wildfires, or major flooding, but we a high rate of blight and degradation. The average insurance premium in Detroit is probably $1800 a year and that is for a very basic stripped down policy sometimes without liability coverage.
The major reason insurance rates in Detroit are so high is because of extreme vacancy which leads to various potential risks. There are oppurtunities for theft, vandalism, accidental fires from squatters or even trespassers, and fires from unscrupulous owners who cannot afford to maintain the home. Citizens are put in a difficult position because police are unavailable to help and the police struggle to keep up with crime because of low funding and low staffing. Limited police force creates an environement for distastor as oppurtunists look to capitalize on oppurtunity.
If Detroit is to become a viable housing market, several things need to happen. The city needs to grow its population which will increase tax revenues. The city can grow by investing in new business which creates jobs, rezone areas to allow development to attract the suburban population, create safe and efficient transportation that would help with population growth, reduce or eliminate the income tax burden on citizens who live and work in the city, substantially increase public services such as police, fire, and ambulance to provide security for its citizens, and lastly create a world class elementary education system which increases property values and tax revenues. Ask any real estate agent, schools drive the demand for homes.
When Detroit becomes a place to work, live, and play then the culture will change. Detroit has one of the greatest opportunities in the entire U.S. We have a major international border with Canada, the Detroit river connects the Great Lakes which delivers a great natural resource that is available for industry and leasure, and we have a long history and a lot of capital available to compete for jobs involving manufacturing and and all of the supporting industries.
Wealth changes cultures and creates oppurtunities. Detroit needs to attract and grow wealth. Detroit was great once and can be again.
How many homes are vacant in Detroit?
Tuesday, July 27th, 2010 | Landlord Insurance, Vacant Home Insurance | 23 Comments
There are a lot of investors looking at Detroit as a great place to buy cheap real estate. The thinking is if you can purchase a home with renovations included for $35,000, you can quickly turn a profit. Most homes in Detroit are brick, beautiful, 2 stories, and usually over 2,000 sqft. As a section 8 property the going rental rate is between $1000-$1400 a month. That is roughly $12,000 a year. In three short years the property would be paid and any future rental income would be 100% profit with the property having a resale value of about 50,000 if rented with a good tenant. Sounds great.
There’s only a couple of problems we even want to address here.
The first is insurance and taxes. With insurance rates ranging from $800-$3,500 a year and property and city taxes costing another $3,600 a year. There is a potential $7,000 a year in additional overhead. That’s not to mention theft, vandalism, arson, and tenants having to be evicted for various reasons.
The second is vacancy. According to Wikipedia, “The 2009 residential lot vacancy in Detroit was 27.8%, up from 10.3% in 2000, with the population continuing to shrink and foreclosures that exacerbate the problem.” So you have to ask yourself, “Who is going to move into my property? Is there anyone out there looking for a place to live?” It’s the classic supply and demand conundrum. Too much supply, too little demand.
Because of the economy, the shrinking and closings of the Big 3 auto and its suppliers, and enormous amounts of vacancies, the city of Detroit struggles to provide services and educational systems that can compete with many suburbs and other metropolises. Vacancies reduce taxable income and increase crime rates which puts an enourmous strain on public services to provide adequate resources. This only leads to more crime and reduced resources available to the communites they serve.
For Detroit to become a competitive city again this blogger believes they have to shrink the city back to its core and build from the middle out. Reduce inventories by eliminating vacant homes on the outlying areas and build from the center. Make it desirable and condensed. Not sure how that plays in politics but it does work for most other major corporations. When income is down, downsize.
As a side not, the deflating real estate values in the city of Detroit have spilled out to the suburbs which has created great investment oppurtunities. Some of the reasons for the rate of vacancy in the city is that more people can afford to move to the suburbs due to the deflated home values and rental rates.
Why is it so hard to insure a vacant house?
Monday, March 1st, 2010 | Vacant Home Insurance | 18 Comments
Many homes are vacant today for various reasons. Many homes have been foreclosed, are up for sale, or waiting for a tenant. A vacant home poses a big risk for the insurance company when the properties are viewed in a grand scale. One home claim for $50,000 requires a lot of people to pay premiums for the company to pay. The rate of claim on a vacant home is smaller but the overall claims are larger due. If no one knows there is a problem with the house, the damage accumulates.
When a home is vacant a very small problem can become a very large problem. Take for example a leaky pipe. We insured an apartment building and when the tenant moved out they did not turn off the plumbing properly on the second floor when they removed their appliances. The dripping was so slow it was almost unnoticeable, but was able to create enough damage to bring the ceiling down on to the first floor and destroyed some of the kitchen cabinets. If no one is actively working or living in a property on a daily basis, a home claim can really get out of hand.
Another major problem with a vacant home is vandalism or theft. A property left alone is prone to attract oppurtunists expecially in a more densely populated area like Detroit or Cincinatti. We have homes in Detroit where other property owners steal cabinets, plumbing, and other building materials for their own rental property. Also because copper is such a hot comodity many homes were being stripped for salvage. We also had a home insured that was used for a dog fighting arena because someone knew the property had been vacated. The property was severally damaged and the dogs were left behind.
Many companies are not equipped nor have the underwriters to properly rate and write insurance on vacant properties. There are companies that specialize in vacant home insurance and are offered by a few agents. The hard part for you is finding an agent who knows the product and coverages and also writes for a company that will insure a vacant home.
We have chosen to specialize in insuring homes, landlords, and investment properties. We insure vacant properties even if they are being rehabbed.
For advise or a quote please visit our website at http://www.mylandlordinsurance.com or call us at 888-438-4544 and ask for Don
The Landlord Insurance Specialists.
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