If you purchase an investment property in the US you will need to have buildings cover just in case your home is damaged and needs repair. If you’re a landlord it is your responsibility ( although it’s not compulsory ) to have at least public liability insurance.
Of course there are many insurance policies available to cover any eventuality worldwide. For a buy to let property the two most important aspects of cover which are imperative are buildings insurance and Liability insurance.
Whichever state you purchase in, Global Investments will help you obtain the correct policy that has you covered, with different programs to suit all investors. You can protect your investment from as little as $1 per day or less!
For maximum convenience you can chose to pay monthly or pay for a whole year up front.
The coverage we recommend is what’s called ‘Special Form’ or ‘All Risks’, which means if it’s not specifically excluded, it’s covered. This ;policy covers Fire, Theft, Vandalism, sometimes called malicious mischief (VMM). You can Insure for the amount you want without the penalty of co-insurance, on most plans.
Most common FAQ’s
I’m looking for the best price as possible, what’s the lowest amount I can insure for?
The minimum amount is $45 per square foot, but that’s not the recommended amount, you must decide that yourself.
I’ve paid $50,000 for my property, I’ve got a real bargain, can I insure it for more?
Yes you can, but there are a few thing to bear in mind. It doesn’t matter what you insure for, the insurance company won’t pay you more than it’s worth/what you paid for it. Insurance is there to “make you whole again” not to make you a profit. If you’ve bought a property for $50,000 that needs a $50,000 rehab and you insure it for $100,000, if it burned down before you did the rehab, you’d probably only the $50,000 you paid for it.
What is ACV?
ACV is Actual Cash Value and is different from the Replacement Cost. It’s basically what the property is worth after taking into account wear and tear and ignoring market conditions. A bit like a car goes down in value as it gets older. This is typically used in lower markets in the US where property has reduced is value due to economic circumstances. In some cities you can buy a house for $50,000 but that same house would cost $150,000 to build. You’d insure it for the ACV of $50,000 because in the event of a total loss, you’d simply clear the site and buy a replacement home for $50,000 not spend $150,000 rebuilding a new one. The Programs that can be offered include options to insure for either ACV or RC.
What is RC?
RC is Replacement cost, it is the amount it would cost to replace the property in the event of a total or partial loss. The cost of insuring for RC is typically much higher than insuring for ACV. If you look at the above examples insuring for RC of $150,000 would cost 3 times as much as insuring for $50,000 ACV
I don’t have to worry about maintenance, that’s why I’ve got insurance, right?
Wrong! This insurance is not a maintenance program and the property must be properly maintained as part of the policy conditions. If you don’t maintain your property, the insurance company is likely to deny your claim.
My property manager want’s to board-up my vacant property. That’s expensive and I want to save the money. Insurance will cover me for a break in, right?
No. Your property manager is acting in your interests. Not only are they trying to protect your investment, but the policy conditions state that you must secure your vacant property appropriately. Which may require boarding it up. Failing to do this may result in a reduced or denied claim. This can also apply to freezing pipes bursting in the winter. A good property management company will “ winterise “ the property. Should you claim for burst pipes in a property that has not been winterised then the insurance company is likely to deny your claim.
I’ve got 2 properties, can I have a discount for bulk?
No. it doesn’t matter whether you’ve 1 or 100 properties. Insurance brokers treat everyone the same. The price you pay is what the underwriters quote for each case.
I want a different deductible, can you find me a different policy?
Unfortunately not. Insurance agents simply run several master insurance programs that allow our clients to add their properties to, you can chose the most appropriate one for your needs, but cannot source a different one or amend the ones they offer for you.
I want to pay once a year, can I do that?
Yes you can. There’s no difference in cost at all. If the payment option is monthly the insurance company simply multiplies the cost by 12. Your payment sit’s in their client escrow account and they draw it down each month. If you no longer need the cover the insurance company simply refunds the unused portion.
Of course there are many insurance policies available to cover any eventuality worldwide. For a buy to let property the two most important aspects of cover which are imperative are buildings insurance and Liability insurance.
Whichever state you purchase in, Global Investments will help you obtain the correct policy that has you covered, with different programs to suit all investors. You can protect your investment from as little as $1 per day or less!
For maximum convenience you can chose to pay monthly or pay for a whole year up front.
The coverage we recommend is what’s called ‘Special Form’ or ‘All Risks’, which means if it’s not specifically excluded, it’s covered. This ;policy covers Fire, Theft, Vandalism, sometimes called malicious mischief (VMM). You can Insure for the amount you want without the penalty of co-insurance, on most plans.
Most common FAQ’s
I’m looking for the best price as possible, what’s the lowest amount I can insure for?
The minimum amount is $45 per square foot, but that’s not the recommended amount, you must decide that yourself.
I’ve paid $50,000 for my property, I’ve got a real bargain, can I insure it for more?
Yes you can, but there are a few thing to bear in mind. It doesn’t matter what you insure for, the insurance company won’t pay you more than it’s worth/what you paid for it. Insurance is there to “make you whole again” not to make you a profit. If you’ve bought a property for $50,000 that needs a $50,000 rehab and you insure it for $100,000, if it burned down before you did the rehab, you’d probably only the $50,000 you paid for it.
What is ACV?
ACV is Actual Cash Value and is different from the Replacement Cost. It’s basically what the property is worth after taking into account wear and tear and ignoring market conditions. A bit like a car goes down in value as it gets older. This is typically used in lower markets in the US where property has reduced is value due to economic circumstances. In some cities you can buy a house for $50,000 but that same house would cost $150,000 to build. You’d insure it for the ACV of $50,000 because in the event of a total loss, you’d simply clear the site and buy a replacement home for $50,000 not spend $150,000 rebuilding a new one. The Programs that can be offered include options to insure for either ACV or RC.
What is RC?
RC is Replacement cost, it is the amount it would cost to replace the property in the event of a total or partial loss. The cost of insuring for RC is typically much higher than insuring for ACV. If you look at the above examples insuring for RC of $150,000 would cost 3 times as much as insuring for $50,000 ACV
I don’t have to worry about maintenance, that’s why I’ve got insurance, right?
Wrong! This insurance is not a maintenance program and the property must be properly maintained as part of the policy conditions. If you don’t maintain your property, the insurance company is likely to deny your claim.
My property manager want’s to board-up my vacant property. That’s expensive and I want to save the money. Insurance will cover me for a break in, right?
No. Your property manager is acting in your interests. Not only are they trying to protect your investment, but the policy conditions state that you must secure your vacant property appropriately. Which may require boarding it up. Failing to do this may result in a reduced or denied claim. This can also apply to freezing pipes bursting in the winter. A good property management company will “ winterise “ the property. Should you claim for burst pipes in a property that has not been winterised then the insurance company is likely to deny your claim.
I’ve got 2 properties, can I have a discount for bulk?
No. it doesn’t matter whether you’ve 1 or 100 properties. Insurance brokers treat everyone the same. The price you pay is what the underwriters quote for each case.
I want a different deductible, can you find me a different policy?
Unfortunately not. Insurance agents simply run several master insurance programs that allow our clients to add their properties to, you can chose the most appropriate one for your needs, but cannot source a different one or amend the ones they offer for you.
I want to pay once a year, can I do that?
Yes you can. There’s no difference in cost at all. If the payment option is monthly the insurance company simply multiplies the cost by 12. Your payment sit’s in their client escrow account and they draw it down each month. If you no longer need the cover the insurance company simply refunds the unused portion.
If you wish to learn more or you have any specific technical questions relating to insuring your overseas investment property
Please feel free to contact us on : invest@globalinvestmentsincorporated
