Hello! I’m Dan Lyles with Lyles Insurance. In this video, we’re going to go over the Foremost vacant rental properties insurance coverage for landlords.
If you're a landlord and have had one of your rental properties remain vacant longer than two months, you understand the frustration and aggravation it can be trying to find dwelling fire insurance coverage on that property. Once you go past that two month mark, it’s very difficult. But the good news is there are some companies that will insure your property. And for those kinds of situations, I have found Foremost Insurance to be the most helpful and most flexible regarding a landlord’s needs.
Here are some of the features of a foremost insurance policy for vacant rentals. You can insure any age home. And you have the ability to insure multiple properties on a single policy as opposed to having to write a separate policy on each one if you own multiple properties. It offers higher liability limits. You can choose between low or high amounts of coverage depending on your needs. And you can have up to five paid claim losses and still get insurance coverage. And they also cover manufactured homes. And they will take a named insured that can be listed as an LLC. And one of the best things about it is, you can easily convert to rental coverage once the occupancy status changes without having to write a whole new policy. And it’s also structured as a “build your own policy”. That gives you a lot of flexibility, and we’re going to talk about that more on the next screen.
With the “Build your own policy” model from Foremost, the landlord has full control over their property as far as which coverages they want and which coverages they don’t. Now of course, if you look at the bottom there, coverage A, insurance coverage on the dwelling itself, of course every policy has that. But if you look at the second and third layers, those are all optional coverages: other structures, personal property, vandalism and malicious mischief, premises liability coverage and medical payments coverage. So any one of those, you can take that coverage or pass on it.
The policy features with Foremost vacant rental coverage: These policies are written as a Dwelling Fire One policy on a named peril basis. And in the event of a total loss, coverages are offered on an agreed value basis. In the event of a partial loss, coverages are offered on an actual cash value basis. And another thing is, it offers pro rata cancellations, meaning that you won’t be penalized if you sell the property before the expiration date of the policy.
There are a few requirements in order to qualify for one of these policies. The dwelling must be vacant or unoccupied for less than 24 months prior to the policy effective date. As I mentioned before, most companies won’t let you go beyond two months. The property must be completely secured with intent to sell, rent or occupy within the next two years. You’ve had to have insurance at least within the past year prior to the policy effective date. And as far as condition, at minimum the property must be in marginal condition and exhibit at least minimal maintenance on both the dwelling and grounds.
Although Foremost has generally broad acceptance in what they will take, there are a few properties that are not acceptable. That includes any building that houses more than four families. A building can’t have any current unrepaired damage. A land trust cannot be listed as the named insured. A property management company can be listed as a named insured, but only if they’re also listed on the deed. And for those of you who have a pool or pond on the premises, you can still get coverage but you won’t be able to get liability coverage. That’s it! Those are the only exceptions, everything else they’re very flexible about.
If you would like to get a quote, just contact a Foremost insurance agent that’s licensed in your state. For those of you who live in the six states that I work in, which are Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you would like for me to personally run you a quote, I’ll be very happy to do so! I’ve listed a link on my website where you can get a quote online. I’ll also post that below the video to make it easy for you to click on. Or if you’d rather get a quote by phone, I’ve also posted my phone number. Thanks for watching and have a great day!
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..