Residential Real Estate Investment Portfolio Insurance

Since the real estate bubble burst in 2008 many investors purchased distressed properties at cost. They have since taken those homes and, after some renovation, converted them into profitable rental homes. If you are reading about this product, chances are you have a client who owns such homes. SES Insurance Brokerage Services, Inc. has designed a product specifically for these investors that allows them to get the property and liability coverage they need for all of their properties under one master policy. No more remembering multiple expiration dates and rating criteria. SES couples its master policy offering with an industry leading online portfolio management system that allows for real time updating of property information.

Coverage Details:

Property

Limits

• $500,000 per location up to $15,000,000 per location
• Coverage is ultimately for the value stated for each property

Basic Coverage Summary

• Special Causes of Loss (ISO based forms widely used)
• Earthquake – if requested
• Flood – if requested
• Named Storm
  • When part of primary package policy and not on a separate DIC cover, EQ, Flood, and Named Storm will have separate, higher deductibles and often capped losses
• Builder’s Risk for homes under renovation – not new construction (additional)
• Business Personal Property (can be included)
• Business Income (coverage for loss of rents can be included)

Property Types

• 1-4 unit dwellings
• Small apartments (with pre determined allowable max TIV)

Replacement Cost Valuation

• For single family residential properties (1-4 unit) SES is looking for a value of $75 per sqft.
• Deductibles
• Range from $1,000 to $25,000 per location, per occurrence
• Separate deductibles for wind/hail, named storm, EQ, Flood, etc.
• Excluded Causes of Loss
• Excluded causes of loss can differ from portfolio to portfolio and will be at the discretion of the underwriter

Liability

Excess Coverage

• Excess limits range from $1,000,000 to $25,000,000 with potential for limits up to $100,000,000
• Coverage most often for strict excess commercial general liability

Limits can vary per policy – generally offered limits are as follows:

• $2,000,000 general aggregate
• $1,000,000 per occurrence
• $100,000 any one fire
• $5,000 med pay per person

Basic Coverage Summary

• ISO based Commercial General Liability coverage/forms

Deductibles

• Range from $0 to $10,000 per occurrence – SES pushes for a $0.00 deductible with each policy

Excluded Causes of Loss

• General pollution, war, nuclear, etc. exclusions are present and can vary per policy