Does insurance agent does matter

Question

it is time for me to find an agent for my new rental property. Does insurance agent does matter? Or they are all the same? If not, how to find an good agent? Thanks

Brenton Way · Answer

@Ashley Shearer I do feel that agents matter in the sense that I would want to work with an agent that is intimately familiar with insuring rental properties. I can't help out the original poster but I just talked to a number of insurance agents in central PA so if you would like some references please feel free to PM me.

Jason Bott · Answer

All agents are not created equally, but they all have their target clientel that they are the best fit for.

@Peter Sik if you have a home, and 1 sfr in CA, then you can find some good options from a local independent agent who focuses on insuring home and auto.

If you had 20 rentals, then you would want to work with a commercial agent who works with insurance companies with a focus on insuring businesses, not home and auto.

@Angela Przulj if you are based over sea's then your needs are more complex and you will want to locate a commercial insurance broker from the start.  There are some insurance companies who will not insure landlords who do not reside in the US.

Gerald Grinter · Answer

@Jason Bott speaks the truth. I have been on both sides as an captive agent focusing mainly on personal lines (home and auto) with limits on what I could do for investors and the tools to keep them as they grew their businesses. I knew the day would come when I would have to refer them elsewhere.

Yes, it does matter. I enjoy having these conversations with my investors (especially (first time investors) to make sure they are looking at how to insure their investment and business correctly. As well as having a front row seat to their growth and success.  @Peter Sik great question!

Jason Bott · Answer

@Ashley Shearer  generally speaking, a personal lines agent will represent insurance companies who offer home and auto, but have a limited appetite for rental properties.

These personal lines companies can offer a competitive product if you fit into their small underwriting box.  Unfortunately it is short lived.  They will usually have a cap of 3-4 units, no building larger than a 4 units and no LLC's.

A commercial policy will not have any of these restrictions, and can be more flexible with how much or how little coverage you want.

For an investor at your stage, I would recommend getting a personal lines and commercial quote.

Mark Forest · Answer

When I had a major loss on a SFH my insurance agent said since I was insured at actual loss instead of replacement value they would deduct depreciation. He said that since my house was more than 50 years old it could not have been insured at replacement value. I called other agents in same company who described creative ways my house could have been insured at replacement value. So yes the agent does matter, but how does one know in advance?

Ashley Shearer · Answer

Wondering something similar... how do you find an insurance broker? I look them up, but the only thing that comes up are insurance agencies or agents with specific companies. I'm in the central PA area. I'd like to find a broker who will do the shopping around for me!

@Jason Bott - what is the difference in coverage from a commercial agent versus someone insuring their homes separately? I ask because we are buying our first property, but plan to buy many more. Would like to set it up right the first time. I was considering just buying home insurance for this first property, and in the future home insurance on each property as well as an umbrella policy (OR do an LLC). Where does commercial insurance come into play?

Joe Funari · Answer

@Peter Sik Need to find a good insurance agent that specializes in commercial properties, as well as, working with multiple SFR landlord policies. Typically good ones are only licensed in one state. Exception would be in the northeast. Especially around the DC Metro area. Recommend you attend some local REI meetings and network with seasoned investors to find good ones that work with investors in SoCal. If it is in Texas I have a couple I can recommend.

Peter Sik · Answer

@Jason Bott understand, thanks for your help.

Does insurance agent does matter

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