What Insurance does a Landlord need to protect against the dog bite?

 What insurance does a Landlord need to protect against the dog bite?

Yesterday I reported the quote that the average dog bite claim is $39,000.  So today, I thought we would talk about what coverage you will need as a Homeowner or a Landlord.  Unfortunately, you need to contact your Insurance Agent and/or read your policy.  I know that’s boring as hell.  You really need to know what you could be facing. 

Look under this paragraph, for typical language.

Wear and Tear: we will not pay for loss or damage caused by or resulting from any of the following:

. Nesting or infestation

. Discharge or release of waste products or secretions (i.e. cat urine), by birds, rodents or other animals

Injuries caused by Animals: “the coverage under this policy does not apply to “bodily injury”, “property damage”. “personal injury”, “advertising injury”, or any injury, loss or damage arising out of or caused by any animals, birds, reptiles or insects regardless of whether owned by you, in your care, or on your property.”  

So, the first part says coverage DOES NOT APPLY, then goes on to say it DOES APPLY for a DOG BITE.  

“Policy provides a sublimit of 25k per occurrence and in aggregate for bodily injury caused directly by a dog bite on your property, whether or not the dog is owned by you or in your care.”

Policy language can be very confusing like the example given.  That is why I am begging you to read your policy or ask your Agent for specifics.  Failure to understand your coverage can cost you your business, financial stability and emotional well-being.  

Put strong language in your Lease about Pets and have your Tenants carry Renters Insurance that covers pets.  Then enforce the Renters Policy.  It doesn’t make sense to attempt to exclude pets, the Tenants are gonna sneak them in anyway, so you might as well cover it upfront.  Inspect your units quarterly.  I have a 24-page Lease with very strong Pet language.  It is available for the asking.

If you need to buy or sell a home, see us at www.5kflatfeelisting.com.  We look forward to hearing from you. 

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480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

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Is the Landlord responsible for a Tenant's Dog Bite?

 Is the Landlord responsible for a Tenant’s dog bite?

According to the CDC 4.5 Million people are bitten per year.  900,000 require medical attention!  The most recent data I could get my hands on was 2018, the Insurance Information Institute said 1/3 of all home owner claims were due to dog bites and the average cost per claim was $39,000.  Ouch, that bite hurts!

Who is responsible?  The Tenant who owns the dog or the Landlord who allowed the dog?  After numerous articles, it comes down to State and County Law.  In Arizona, it’s the dog OWNER who is responsible must compensate victims for their injuries and losses. 

Steve German, A Law Firm, January 27, 2017 outlines Maricopa County rules:

• Ordinance requires that all dog bites be reported to Maricopa County Animal Care and Control (MCACC). 

• The MCAAC also encourages citizens to report other incidents or potentially dangerous dogs. This includes non-bite attacks and menacing behavior, such as a dog that chased children, a dog that attacked other pets, a chained dog that growls and lunges at passersby, stray dogs, dogs loose on school grounds and leash law violations.  

• After a report of a dog bite, the dog must be quarantined for 10 days as a rabies precaution. The MCAAC can remove the dog from the home or it may allow the dog to be confined at the owner's residence. The owner must pay any quarantine costs.  

• Dog bite victims and concerned neighbors can file a vicious dog petition. The MCAAC determines whether the animal is vicious. If the dog is deemed to pose no public threat, it is released to the owner after quarantine.  

• If the dog is deemed vicious, the MCAAC can impose a range of measures, up to and including euthanizing. The owner might be required to post "dangerous dog" signage, purchase liability insurance, have the dog spayed or neutered and/or keep their pet indoors or in a locked pen.

If you need to buy or sell a home, see us at www.5kflatfeelisting.com.  We look forward to hearing from you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

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Geoff & Mia Nowlin

480-466-3737

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Why Lumber Is So Expensive!

 Why lumber is so expensive now!

There are basically 5 reasons why lumber is so expensive just now.  It’s an intersection of events colliding at once to create this phenomenon.  Here it is in a nutshell:

1. The Lumber Industry just came out of a 12-year recession.  Sawmills closed, massive layoffs and other cutbacks hurt the industry.  Active sawmills are having trouble finding Labor, just like every other industry. 

2. Sawmill openings/building new ones.  You would not think it would be difficult to build a roof and put saws underneath.  But from what I have read, getting a new saw mill off the ground is not easy or fast. 

3. Eco groups, tree huggers and democrat regulations covering cutting, trucking and sawing are designed to help cripple that industry.  Then they wonder why they can’t get wood.  Duh. 

4. Canada amounts to 30% of US consumption.  Most coming from British Columbia which has been battling a beetle infestation.  This ruins the wood.  

5. Covid-19 spawned a construction boom.  People were staying home and saying to themselves, now would be a good time to get that project underway.  Whether is be a new deck, fence or and addition, they all need wood. 

Not to mention the housing market in general.  New home builders cannot deliver a house for nearly 1 year.  They say due to Labor.  They just don’t have enough men to build the homes.  Can you imagine what the price of wood would be if they had enough Labor to finish the homes faster?

Apparently, the average house uses 16,000 board feet of wood.  1,000 board feet is a 12x12x1.  Normal price for 1,000 board feet is between $200-$400.  Today, its $1,000-$1,400 per board feet.  

If you need to sell your home and save thousands, see us at www.5kflatfeelisting.com.

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

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nowlin.geoff@gmail.com

Name:

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Serving Maricopa & Pinal County Arizona

Renter's Hiding Behind Covid-19!

 Renters hiding behind Covid-19.  

I just read an article by Nikki J. Salgat, Esq.  an Attorney with the Arizona Association of Realtors.  Let me summarize for you in English. 

The CDC extends its moratorium on evictions until June 30, 2021.  The Consumer Financial Protection Bureau CFPB issued a rule that ANY debt collector conduct violates the Fair Debt Collection Practices Act FDCPA.  

What is “conduct”?  Those who evict Tenants for non-payment is conduct.  These businesses must provide NOTICE of what rights Tenants may have.  This ruling goes into effect May 3, 2021.

Her basic question is “Are Property Managers Debt Collectors?”  The answer is YES if the Lease was signed after Covid-19 started.  Before Covid-19, the answer is NO.  The question she doesn’t answer is, what date did Covid-19 start?

31 Dec 2019

WHO’s Country Office in the People’s Republic of China picked up a media statement by the Wuhan Municipal Health Commission from their website on cases of ‘viral pneumonia’ in Wuhan.

I think the exact date of when Covid-19 started is questionable. This date of 12/19/20219 is when a Chinese Health Commission published knowledge of the ‘viral pnuemonia’ on their website, it probably started before then.  For the sake of this argument, let’s agree that 12/19/20219 is the start date.  

Any lease created before 12/19/2019 is exempt from the rule that Property Managers = Debt Collectors.  

This is language that Ms. Salgat recommends that Property Managers put into their notices:

“Because of the global COVID-19 pandemic, you may be eligible for temporary protection from eviction under Federal or Arizona law, including an Order issued by the Centers for Disease Control and Prevention.  To understand your rights and obligations you may visit www.cfpb.gov/eviction, www.azcourts.gov, or call a housing counselor at 800-569-4287.”

Renters are in a perilous position anyway.  If they don’t pay, their bill just accrues and gets bigger.  All they are doing is stalling the eviction.  If their end game is to BK out, then they shoot themselves in the foot with respect to credit score and future rental prospects.  In my opinion, the moratorium on evictions is stupid and harmful.  Just watch the eviction and BK case skyrocket when the moratorium is lifted. It’s gonna be painful. 

If you need to sell your rental home www.5kflatfeelisting.com and save thousands, see us at www.5kflatfeelistin.com.

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

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Serving Maricopa & Pinal County Arizona

Are you covered with Rental Insurance? Is it Enough?

 Is your rental property insurance ENOUGH?

Huge question.  Just like your health insurance, if something catastrophic happens, you want to be covered, right!  Same with your rental property.  Let’s assume you have a fire in your quadruplex and a Tenant dies.  That’s bad.  Real bad.  The family sues.  Who do they sue: YOU, that’s who.  Ouch.  Did you know it costs $25,000 per day to have a trail plus prep expenses?  Don’t forget there are 2 Lawyers.  Therefore, average lawsuit will cost $50,000 per day plus prep expenses.  Says my Real Estate Attorney Dax Watson.  (great guy, hire him).

When you buy a rental, your Insurance Agent will sell you a personal or a commercial liability policy.  You had better take both.  The commercial liability policy will take precedent over the personal.  The personal is just in case. 

Your Insurance Agent will offer you both a personal umbrella policy and a commercial umbrella policy.  You had better take both.  

The Judge awards the family 2.5 Million.  Here is how the payout would work:

You bought:

Commercial Liability Policy of 1 Million per occurrence and 2 Million annual

Commercial Umbrella Policy of 3 Million

1. Commercial Liability Policy would pay the first 1 Million 

2. Commercial Umbrella Policy would pay the second 1.5 Million

If you didn’t have the Commercial Umbrella Policy, your Business and its assets would owe 1.5 Million.  Are you starting to get the drift?  

Every time you buy a new rental property and put it into your portfolio, call your Insurance Agent and reassess your risk level and policy coverages.  

If you need to sell at a www.5kflatfeelisting.com, just call or see us online.  Look forward to meeting you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Who Pays for Tenant Damage The Landlord, Insurance or Security Deposit?

 Tenants Damage, who pays? Insurance, Security Deposit or Landlord?

I was just asked by one of my Investor Clients about this issue.  Here is the short of it:

Security Deposits are designed to pay for things the Tenant has broken during their stay and normal wear and tear. You conduct a Move-In and Move-Out and note the discrepancies.  These discrepancies are to be fixed and paid out of the Security Deposit.  Set the expectations with the Tenant upfront that your intention is to give 100% of the Security Deposit back upon completion.  Remember, you want to make a friend of your Tenant.  Always attempt to keep the relationship cordial. 

The Lease itself is designed to have financial penalties for certain behaviors (p.s. My Lease is 24 pages long just for this).   Just ask and I will send you a copy. 

Insurance is designed to pay for accidental items.  Like a kitchen fire, like the hot water heater burst, etc.  

Insurance loves to exclude things, right?  What would be considered excluded from your Policy if a Tenant damages the unit?  The answer is INTENTIONAL Tenant damage and normal wear and tear.  A carpet will naturally get a rut in it over time, that’s wear and tear.  If your Tenant pours cement down your drains, that’s INTENTIONAL and NOT COVERED!

A Court Judgment will be expensive to pursue and you are basically attempting to squeeze blood out of a turnup.  It’s just not going to happen.  A Judgement is a piece of paper and is generally worthless if the Defendant doesn’t have any money.  One Strategy could be to get the judgment and re-affirm it every 5 years.  In AZ where I live, it will grow at 10% per year.  Then in 20 years down the line, you hope these people have a career, a car, a boat or some asset that the Court can take for you to pay off your re-affirmed judgment.  It’s a long-term play that may never pay off.  

Insurance Products that can help:  Renters insurance for contents, with you as an additional insured.  Rent Replacement Insurance, should damage take a long time to repair or in the event of a disaster.  Tenant Protection Plan for Tenant caused losses and skipping last months rent coverage.  Ask your Insurance Agent about all the Tenant related products.  If you need a referral, give me a call.  See us at  www.5kflatfeelisting.com for more information.  Look forward to working with you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona