{"id":113487,"date":"2019-07-24T17:00:26","date_gmt":"2019-07-24T23:00:26","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=113487"},"modified":"2021-03-16T14:55:07","modified_gmt":"2021-03-16T20:55:07","slug":"real-estate-insurance-agents-red-flags","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/real-estate-insurance-agents-red-flags","title":{"rendered":"5 Types of Insurance Agents That Are WRONG for Investors"},"content":{"rendered":"

People find insurance agents all sorts of ways. Many of us start by asking our investor friends, buddies working in the insurance industry, and even ordinary friends and family members. Many more simply approach the company managing their homestead or auto company, where options on policies are limited. But no matter how you find your agent, the important thing to know is whether this person is going to be the right individual to serve your needs. <\/span><\/p>\n

The only way to do that is through some good old-fashioned due diligence and thorough vetting. Let’s get right into how to vet your insurance agent so you can know what to look for\u2014or in some cases, run away from!<\/span><\/p>\n

Who Your Agent Is Matters\u2014This Is Why<\/h2>\n

When we’re evaluating insurance decisions in general, we must consider which factors affecting our insurance policies are within our control. I intend to write about all of them here on BiggerPockets over time, but we’ve talked about the importance of selecting the correct policy before. With the <\/span>overwhelming majority of investors using the wrong policy for them,<\/span><\/a> how many do you think are also using the wrong agent?\u00a0<\/span><\/p>\n

Agent selection can prove just as critical as policy selection. In instances where an investor ends up with a policy or agent that isn’t optimal, we don’t blame the investor. We can’t on most matters of insurance company-investor relations for the simple reason that <\/span>there is very little information about how to do these things. <\/b>That’s why I’m creating these guides for you, BiggerPockets friends. The “every investor” needs a manual.<\/span><\/p>\n

Think for a moment about what you really want out of an agent. For most people, that’s someone who is smart, aware of the options available, and\u2014above all\u2014ethical. There’s no quick test for any of these qualities, so the next best thing you can do is ask questions.\u00a0<\/span><\/p>\n

Any professional who won’t answer some questions isn’t worth your time or money. While folks like realtors, insurance personnel, and especially attorneys have professional boundaries about giving personalized advice to non-clients, any of these experts should be able to answer basic questions about the services they provide. If you’re paying for their time, they should be able to answer questions in depth.<\/span><\/p>\n

Watch Out for These Common Agent Problems<\/h2>\n

Let’s face it, there are people who suck at their jobs in every field. That’s fine; it’s just the way the world works. But you don’t need to be on the losing end. Here are some trends I’ve noticed in my years both working as an insurance agent and observing how others operate. There are several. And where possible, I’ll point out the a more ideal relationship.<\/span><\/p>\n

\"skeptical_investor\"<\/p>\n

Red Flag #1: You’re Getting the Sales Treatment From the Package Player<\/h3>\n

This person is also known as the jack of all trades, or the master of none. If you go into an agent’s office and it becomes clear that their goal is to up-sell you to high heaven, you might be dealing with a “package player.” The package player doesn’t just want to help you with that rental property you came in to talk about\u2014t<\/span>hey want to sell you the freakin’ works. <\/span><\/p>\n

Maybe you need home, auto, motorcycle, or life insurance? Heck, they might even offer to insure your beloved parrot Bethany. If an agent glosses over the main thing you want to talk about and manages to turn it into a side issue, that’s a great sign they’re manipulating the conversation toward the up-sell. <\/span><\/p>\n

This type of manipulation is one reason insurance agents get a bad rap. But none of us have to tolerate it. Nobody can drive you crazy if you don’t give them the keys. Keep ’em in your hand, and drive to a different agent’s office.<\/span><\/p>\n

Related: <\/em><\/strong>Important Points to Consider when Obtaining Homeowner\u2019s Insurance<\/a><\/em><\/p>\n

Red Flag #2: You Found a Dictator, Not an Advocate<\/h3>\n

Certain behaviors aren’t just annoying or pathological\u2014they’re just not conducive to good business. The agent-turned-dictator is a prime example. You can recognize him or her in the wild by these trademark traits:<\/span><\/p>\n