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Hi, is it similar to car insurance where every claim can negatively affect your premium/insurance cost at renewal? Also, is it true after 3 claims the insurance company can decide not to insure more properties for you anymore, discontinue your insurance or something? As a landlord, I have a small leakage from the ceiling of one of the rental units. Should i involve the insurance company OR as long as it is less than say $ 1000 just fix it myself (meaning pay a professional to fix it without involving insurance)?? THANKS.
Thank You Guys for the advice!

4 Thoughts on Real Estate Investment – Home Insurance – is it like car insurance where a Claim can affect premium?
  1. Reply
    Gaytheist Buddha
    August 10, 2011 at 2:09 am

    Claim history can affect your premium and too many claims MAY result in cancellation, depending upon how well your state insurance commissioner protects consumers. There is no standard answer of what will happen and every situation is unique.

    Many people will recommend fixing minor problems yourself without filing a claim.

    Last year a car hit my front fence. I went through my insurance company to pay for repairs and they subsequently collected from the driver’s insurance.

  2. Reply
    August 10, 2011 at 2:16 am

    oh, yes! fix such tiny things on your own

  3. Reply
    August 10, 2011 at 2:50 am

    If your insurance covers repairs to your building/property then all means use it that is the reason you paid for it.

    Most insurance for property is called hazard (fire) insurance and cover the building in the event the house can no longer be used for it’s intended purpose after a fire or some other natural disaster. Then the insurance would come in and return the property to it’s original intent.

    Normally a landlord would hire someone to repair a leak in a pipe and deduct the cost of this repair on his federal income tax to include any and all deprecation for the year that is allowed by the IRS. Most repairs are deductible on your federal insurance.

    Landlords that have been in the business of being a landlord are in this business to make a profit. At times insurance is an unnecessary cost. You should take a look at any repair cost and the cost of the insurance and see which is most beneficial to you and your situation, before you encounter a problem.

    A CPA or your tax consultant might help in this matter to determine which method is most cost effective for you.

    You should always have a plumber, electrician, and others that are on stand by for such emergencies, that you can pick up the telephone and call for immediate service, or at least as estimate of the cost of any possible repair cost.

    Also you should have an emergency fund set aside for emergency repairs that might come up.

    You might also want to check out the Apartment House Association in your local area. This company might be of some help to you in becoming a great landlord.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  4. Reply
    Dick C
    August 10, 2011 at 2:58 am

    You can easily check your quotes in internet, for example here –

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