Simple Lesson In Insurance

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

On June 30, my client closed on a 2 bdr/2 bath absolutely stunning unit on the 24th floor of ocean Walk Wyndham Resort. The minute I received the executed HUD from out-of-town Title Company, I scanned and e-mailed it to the Resort and asked them to expedite putting the unit into rental pool. The unit was an REO and was not on rental for a long time.

I then received the e-mail from the Manager, forwarded the requirements to the new owner, waited till he got the Insurance policy for the unit (Liability & Content), and on Friday afternoon I met the owner in the resort and took him to the manager. 4th of July weekend was coming, the resort was very busy, and the manager had to stay Ocean Walk Resortlate to make sure the unit was ready to go on rental.

And on Tuesday I have received the following e-mail:

Hello Mr. Xxxxxxxxxxx,

After a little scrambling we were able to put your unit into the rental rotation.  Thank you again for allowing Extra Holidays to manage your unit.

On Sunday, July 4, 2010, Xxxxxxx, the guest staying in your unit, slipped and fell in the tub.  Paramedics responded to the call and Ms. Xxxxx was transported to Halifax Hospital.  I attached a copy of the resort’s incident report for your records.  I will be forwarding your insurance information to Ms. Xxxxx.  Ms. Xxxxx’s contact information is located on the incident report.

Feel free to contact me with any questions or concerns.

Regards,
Kathy Xxxxxx
Wyndham Ocean Walk Resort

How many times in other condo-hotels we had the situation where there was a gap after the new owner obtained the insurance, and the management company kept renting the unit.

My client is a serious  businessman, not just a lucky guy. He knew that chances of him getting in trouble were close to 0, but he did not risk, he got the insurance. Close to 0% risk of trouble on the first day the unit was rented and 0% could easily be a few thousand dollars.

A good lesson for me

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Dan Edward Phillips 07/12/2010 07:57 AM
Topic:
Real Estate General Information
Location:
Florida Volusia County Daytona Beach Ocean Walk
Groups:
Silent Majority
Realtors®
Condo Specialists
Condo Benefits
Advice for Buyers
Tags:
condo insurance
daytona condos
daytona condohotels
buying a condohotel in daytona beach
cheap daytona condos

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Rainmaker
351,538
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

It is great when clients make good sound decisions and keep themselves, and you, out of trouble!

Jul 08, 2010 10:08 PM #1
Rainer
36,582
Mary Kay Irving
Thompson Daviau Realty - Boulder, CO

Important info for Everyone Jon not just renters and homeowner.  Insurance of all kinds is just plain smart.  Thanks for sharing.

Jul 08, 2010 10:10 PM #2
Rainmaker
1,500,198
Rebecca Gaujot, the GO TO REALTOR
Coldwell Banker Stuart & Watts Real Estate - Lewisburg, WV
Lewisburg WV Real Estate, Greenbrier County

So glad he did not hestitate for a secod to get his insurance.  Whew!!!

Jul 08, 2010 10:11 PM #3
Rainmaker
280,795
Jack Mossman - The Nines Team in Stockton
The Nines Team At Keller Williams - Stockton, CA
The Nines Team at Keller Williams

Wow .... while recreational property isn't part of my focus, the lesson you shared is inpressive!  I'll use it in future examples and teaching.  Thanks for sharing!

Jul 08, 2010 10:11 PM #4
Rainmaker
640,298
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

I'll bet he is breathing a HUGE sigh of relief that he followed his instincts to get the insurance before letting a renter in.

Jul 08, 2010 10:20 PM #5
Rainmaker
347,764
Rodney Mason
Prospect Mortgage - Atlanta, GA
FHA 203K, USDA, VA, HomePath Renovation Specialist

Being properly insured is crucial.  Investors with rental properties especially need to consider an umbrella policy.

Jul 08, 2010 10:30 PM #6
Ambassador
1,356,850
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Actually, the e-mail was a copy of the e-mail sent to my client as when he set his account with the resort, he asked them to copy me on everythig they send him, as he is often not in town, and he wants me to figure where it need his personal attention, or when I can simply take care of things.

I sat quiet, and he did not even call me or send me an e-mail.

And I imagine what the reaction would be if there was not insurance, and the e-mail would state that "we have provided the guest;s attorney with your contact information, and you will hear from this attorney shortly"

WHat a world of difference

Jul 08, 2010 11:06 PM #7
Ambassador
904,650
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Jon, that wasn't fun. Good thing your client dotted all his I's and crossed all his T's...

Jul 08, 2010 11:32 PM #8
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Andrea - it was sure a shock to get on your first day of renting.

Jul 09, 2010 12:36 AM #9
Rainmaker
594,376
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Hi Jon, that is a very good lesson for everyone!  Thank you for sharing it.

Jul 09, 2010 12:46 AM #10
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

thank you, Dan. It was a serious call for us, as we have customers who would be very lenient... Well, we won't any more.

Jul 09, 2010 01:06 AM #11
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Jon Zolsky, Daytona Beach, FL

Selling Daytona paradise for heavenly good prices
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