Trophy,

As a landlord, you have landlord insurance. That covers fire and other catostrophic loses. It does not cover damage done by the tenants. In some areas you can get insurance that will repair vandalism, but I'd be surprised if you could get it in Buffalo because of the type of area it is.

As for lawsuits, the management carries insurance that covers themselves if they do something to get themselves sued. If they do something to get themselves sued, there is a good chance you will also be named in the lawsuit because they are your representative and acting in your name. It's assumed that anything they do with your property is with your blessing.

As the landlord, you have liability insurance included in your landlord policy. When you buy insurance, you carefully check to see what coverage is provided.

It's important to keep your property in good repair, so the tenants don't hurt themsleves on some unsafe feature of the property. There is a lot of difference between a lawsuit because the tenant tripped and fell and a lawsuit because their child fell through a rotted staiway banister. It's your job as the landlord to keep that banister safe enough that it will hold a person on the stairway and not dump them out into empty air.

You also must make certain that the insurance agent understands that the house is to be rented out. There is a huge difference between the policy for an owner-occupied home and the policy for a rented home. You don't want to buy the wrong policy and then discover that the insurance compnay won't pay becasue your policy doesn't actually cover you situation.

Insurance is very easy to buy: call 3-4 different companies, give them the address, and they will get back to you within a day with a price for the insurance and what the policy will cover. You must sign the application, but papers can be faxed, or sent overnight with Fedex.

If any real estate salesman told me I did not need insurance on a rental unit, I would find another agent. If they'd lie to me about the most important aspect, I'd wonder what else they'd lie to me about.

Note: many condo associations maintain "bricks and mortor" insurance on the buildings. That covers damage done to the building by fire, hgh winds, etc, and they usually have liability insurance for the common grounds. If you buy a condo to use as a rental. you still need to have liability insurance and insurance that covers damage to the inside of your unit.

The insurance is very easy to buy. It's not terribly expensive. If you do get sued, you call your agent and turn it over to their lawyers.

Also, another quick note: you can buy "loss of income" insurance.

That does not really guarantee that you will receive income. What it does is replace the income if your unit can not be rented due to damage that is covered by your policy.

If your house burns down, and the insurance company covers loss by fire, and you have a loss of income rider, the insurance company replaces the lost income so you have something to pay the mortgage while the house is being repaired.

It does not cover the time the house is vacant because one tenant moved out and you have not found another.

It also does not cover vacant periods where you can't re-rent because the departing tenants have caused too much damage and you have to take the time to repair it. Nor if your tenants stop paying and refuse to move until they are evicted.

I've heard of agents or sellers who try to imply that "loss of income" insurance can be purchased to guarantee a steady income. That's not true.

When you buy insurance, it is the agent's job to explain to you what your policy covers, so make him explain it to you until you understand what it is that you are buying.

You will also get a printed copy of your policy that outlines everything that is covered.

Thanks for your 2 useful and informative posts.

I wonder if anyone who bought through Brennan Properties would be willing to share their list of hazard insurers that Brennans would have given them?
I doubt if the majority of USA insurers will insure a UK resident.
Also there is a lack of UK insurers willing to insure Brits who have bought in the USA (outside Florida anyway).

Hi,

I am Australian living in Rochester and have just purchased one property and am closing on another next month. It has taken me a year to figure it out and choose.

I am starting a business for overseas (Australian and UK) investors to connect with me and buy good quality safe investments.

If I can be of help please let me know.

J

Hi,

I am Australian living in Rochester and have just purchased one property and am closing on another next month. It has taken me a year to figure it out and choose.

I am starting a business for overseas (Australian and UK) investors to connect with me and buy good quality safe investments.

If I can be of help please let me know.

hi J, Hows Rochester for you?
I am close to closing on a property in weyl street, do you know the area?

thanks
E

Hi E,

I know Weyl, it is near Weaver, off Hudson and Joseph.

I looked at a good house in Weaver (#253 I think for ~40K, it sold for $38900.)

The area is hispanic and polish (weird combination) and african american.

Myself and 2 other project leaders and 10 kids from our church are rehabbing a house near there in two weeks.

The properties I own are in the 19th ward near University of Rochester, it is up and coming. My wife works for the university and studies there. It took me a year to buy something as I looked at 5-10 a week. Now I know what I am doing, the process should go alot quicker.

If you need any advice and/or looking for excellent properties please do not hesitate to email me.

Regards

J

Hi could you give me some advice on geting a us tax numer as i hear i need one in order to receive rent from the property I am buying? many thanks,Eve

Could you sugest the best way to find out about these properties in Germany?

Thanks

Hi all,
any updates on how folks have gone with their US purchases ?

Evey7, did you get a tenant and how has everything worked out ??

RebelYell