Insurance Road Block

[llee]

Hi,

I have my primary home insurance with PC Insurance. After adding a duplex and a condo townhouse, I was advised that they cannot insure any future rental properties because I have hit the "3-family" limit policy. Have anyone heard of that? What can I do? Change all my profolio to a different insurance company?

Any suggestion or recommendation is very appreciated.

Thanks,
Lucas

 

[MonteDobson]

Hi Lucas,

Are you dealing with an experienced insurance broker? If so they should have access to many different products and companies to suit your needs, similar to a mortgage broker.

 

[llee]

Unfortunately, I am not dealing with an insurance broker directly. I have my primary home insured with the PC Insurance for a while and was told by someone that my rentals have to be insured with the same company as primary residence. So, I thought it makes sense to add my rentals to PC Insurance (and their rate is reasonably good). I guess it doesn`t now.

I suppose property insurance is different than mortgage: while our mortgage can be with different financial institution, rental property insurance has to go together with the primary residence insurance. Is this true?

 

[invst4profit]

NO. Find a broker to assist you.

 

[DonCampbell]

Hey Luca,

Use an experienced broker. There are a few listed on the Resource Directory that other Members have used with great results.

 

[nepoez]

I just ran into this problem a couple weeks ago, they actually weren`t going to insure my 3rd property until several painful phone calls. When I acquire the next property I`m going to have to transfer them to another company. I`ve called AllState and they said they would insure many properties as long as my resident property is under them as well. You could give them a call, that`s one option.



QUOTE (llee @ Nov 13 2008, 01:59 PM) Hi,

I have my primary home insurance with PC Insurance. After adding a duplex and a condo townhouse, I was advised that they cannot insure any future rental properties because I have hit the "3-family" limit policy. Have anyone heard of that? What can I do? Change all my profolio to a different insurance company?

Any suggestion or recommendation is very appreciated.

Thanks,
Lucas

 

[Nicola]

QUOTE (llee @ Nov 14 2008, 10:31 AM) I suppose property insurance is different than mortgage: while our mortgage can be with different financial institution, rental property insurance has to go together with the primary residence insurance. Is this true?

Your rental insurance doesn`t have to be with the same company as your primary residence, but it makes it easier (and cheaper). We don`t have a primary residence and it`s a lot harder to get insurance for rentals. However, SMI (Saskatchewan Mutual Insurance) will insure rental properties without a primary residence (in Sask, Alberta & Manitoba, I believe). Try them.

Oh sorry - I just saw that you`re in Ontario - if your properties are there then SMI will be of no help.

 

[ShannonMurree]

PC is not a good company at all to deal with. This is not only my opinion but my personal experience as well. The only reason why they`re cheap is that they don`t have great customer service (if you can get someone) and too many restrictions and limitations. I went with another Insurance Broker who shopped around and got an Insurance Company to work FOR me. I was able to package everything together and happy with my competitive rates.

Experience and accountability is key. PC doesn`t have that.


Good luck!