Concerns investors have about insurance?

Question

What are the top concerns real estate investors have in Oklahoma regarding insurance, and coverages?

Jeff Filali · Answer

I own properties all throughout Oklahoma and was paying very high rates, but switched all of them to REIGuard out of Kansas City over a year ago.  Saved a lot of money, they are very investor friendly, all properties on one invoice (even if held in multiple LLCs), monthly reminder to make any changes, only pay for what you use (daily billing), offers coverage for vacant properties, offers replacement or cash value coverage, and a lot more.

Deborah Burian · Answer

We live and invest in Oklahoma and yes, insurance appears to be higher here. As a rule of thumb, and this is just a starting place, our insurance is usually a little higher than the property taxes. Which probably says something about both of those services. We do get a trivial discount for high-impact shingles but every little bit helps. In terms of big impact on our costs, ice storms and large hail (grapefruit sized two years in a row) have affected us more than tornadoes.

Our top concern was that we could not cover more than $1,000,000 in gross property value without going to underwriting which was much more complicated and expensive.

Tracy Streich · Answer

I find that most investors are over insured.  I look at at insurance for my rentals like high risk health insurance.  If I go to the doctor I pay.  If I go to the hospital the insurance kicks in.  I want to file a claim if it burns down or blows down.   Otherwise I can probably get most things repaired or replaced for less than he deductible  Most of the big insurance agencies will have you paying premiums of twice what you have paid for a rental property here in Oklahoma.  I use Derrick Scott with IMG advisors in Tulsa.  He has saves me $1,000s every year.

Heather Miner · Answer

I'll jump in as I'm considering investing in OKC/Tulsa and have not yet researched insurance. So, I have plenty of probable misconceptions! ;) We're concerned about (1) the higher cost relative to other areas (tornadoes, anyone?), (2) whether we need special coverage for anything related to Oklahoma (are tornadoes included in standard coverage?) and (3) if there is anything we can do to lower insurance rates (e.g., type of materials used during construction? age of home?)

Victor S. · Answer

Tracy, are you using Cash Value on your investment properties? For my main residence, Safeco (ran thru ins brokers) has been superior to any other insurance Cos (even the obscure smaller ones) by far.

Concerns investors have about insurance?

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