Everyone stresses the importance of finding a real estate agent who is investor-friendly and who also is an investor themselves.
But what about insurance agents?
Are there different policies or coverages that you would want an investor-friendly insurance agent to specialize in? What makes you decide who to use for insurance on the investing side vs personal side?
@Sam Fickel I use an insurance broker who can access several different insurance companies for both my personal and business. Have you tried a broker vs. just an insurance agent?
@Lara White I currently use a broker for my insurance but curious if there was a difference between normal agents and specifically investor-friendly agents, like one would specify with an insurance agent
Ping me directly. Have a solid broker for CA and TX properties
@Sam Fickel I don’t know. It’s a good question. If you find anything out, let me know I’d be interested in what you learn!
So many investors start by going to their home and auto insurance agent and asking, “Can you insure my rental property?” And of course, they say, “Yes, I can do that.”
Unfortunately, this is the equivalent of asking a real estate agent if they know of any good rental properties you can buy. Has a seller’s agent ever said no to this question?
Seasoned real estate investors who have been around the block understand the importance of finding the right agent who has the resources to deliver your custom fit policy at a below market premium.
So how do you vet the common agent from the expert?
Here are some of the warning signs a well-intentioned agent will never be able to give you the best the market has to offer.
Five warning signs in selecting an insurance agent:
- *Jack-of-all-trades and the master of none (e.g., they want to upsell you home, auto, health, life insurance, etc.)
- *Dictator, not a consultant (e.g., they force coverage on you instead of tailoring the coverages around your unique situation)
- *Only represent one insurance company (no single insurance company can offer the right policy, at the right price for all situations)
- *Their process for getting a quote is difficult and cumbersome
- *Their underwriters/inspectors seem to always find a problem with a property
If you spot these warning signs, you should run for the hills. Instead, you should search for an insurance agent with these attributes:
- *Have a depth of knowledge gained through years of experience working with real estate investors like yourself
- *Have a unique consultation process specifically crafted for working with REIs
- *Have access to a minimum of 50 insurance companies
- *Work with a mid to large independent insurance agency (the larger the agency, the more leverage they have with insurance premiums and claim settlements).
@Jason Bott thank you so much! That is exactly what I was wondering!
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