My Landlord Insurance Blog

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.

Tags: arizona, Detroit, georgia, homeowners insurance, homes, insurance, investment, Landlord Insurance, michigan, ohio, out of country landlord, out of state landlord, property, Real Estate, renters insurance, vacant, Vacant Home Insurance, vacant insurance, vacant property insurance

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.

Tags: Detroit, georgia, home, homeowners insurance, homes, insurance, investment, landlord, Landlord Insurance, michigan, ohio, out of country landlord, out of state landlord, property, texas, vacant, Vacant Home Insurance, vacant insurance, vacant property insurance

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.

Tags: Detroit, homeowners insurance, homes, insurance, landlord, Landlord Insurance, michigan, out of country landlord, out of state landlord, vacant

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.

Tags: Detroit, home, insurance, landlord, mi, property, vacant