Philadelphia Landlord Insurance – Call 215-646-5633
If you are a seasoned real estate investor you may have noticed that the cost to insure apartment buildings and single-family residential units has gone up significantly!
If you are looking for rate comparisons on Philadelphia Landlord Insurance call 215-646-5633.
We represent a number of top rated insurance carriers that can help you find the coverage you need at a price you can afford. For your convenience you may request an online quote for apartment buildings by clicking here.
Why rates are going up?
Due to record storm activity and claim payouts by insurance companies, some insurance companies are substantially increasing the price on Philadelphia landlord insurance.
Not all companies are taking aggressive rate action. That’s why it’s an excellent idea to allow our Philadelphia independent insurance agency to shop the market for your landlord insurance needs.
Avoid This Common Mistake on Philadelphia Landlord Insurance.
To save money on landlord insurance some investors have decreased the amount of coverage they have on their properties, or purchased a basic landlord policy.
In a previous article we discussed the three different coverage options for Philadelphia landlord insurance. You have the basic, broad, and special coverage policy form.
If you choose the basic policy form you should be aware that any claims that occur on property is covered by the basic policy form are settled on an actual cash value basis.
What Is Actual Cash Value (ACV) on the Philadelphia Landlord Insurance Policy?
Let’s assume to save money you have decided to purchase the basic policy form for your landlord insurance policy.
Let’s also assume that a windstorm damages your roof and it will need to be completely replaced.
The cost to replace your roof is $22,000.
Let’s also assume that your insurance company considers the life expectancy of your roof to be 20 years and at the time of the loss your roof is 10 years old. The insurance company may subtract 50% in the form of depreciation (ACV) on the value of your roof and will deduct that amount from any losses to the roof!
- Claim cost – $22,000
- Depreciation adjustment – $11,000
- Windstorm deductible – $2000
On a $22,000 claim your insurance company will only pay $9000 leaving you to pay the remaining balance of $13,000! That’s how actual cash value coverage may work on the basic policy form.
Regrettably many investors are not aware that this and learn the hard way.
Are You Covered by the Basic Policy Form on Your Philadelphia Landlord Insurance Policy?
You may want to consider upgrading your coverage to the broad or special form for better protection.
We can help you find the coverage you need for your rental properties in Philadelphia at a price you can afford.
Call 215-646-5633 and Speak to the Landlord Insurance Experts at Humphries Insurance!
Alternatively you can request a quote by clicking on: Philadelphia apartment building insurance.