STAY AWAY FROM NREIG (National Real Estate Insurance Group)

40 Replies

I'm too young to have a heart attack but that's what I just went through dealing with NREIG.  Long story short I'm getting a portfolio loan through LimaOneCapital and they have some pretty specific request when it comes to insurance policies.  One of the requests was that I get an official invoice for any outstanding balance for each property. Well, 14 days later and 14 requests later I still don't have it and still can't close on my refinance deal.   Actually, it's been 14 written request and probably the same number of phone calls trying to get it.  I was on the phone with one representative and it took her 30 seconds to generate the report for a single property but when I asked for the same report for the other properties, she said I could only get it from my representative.  

Besides this one case, the only other negative experience I had was in trying to file a claim.  It didn't work out so well but I understand certain aspects are out of their control.  Regardless, I would highly recommend paying the extra few bucks other insurance companies charge and go with an Insurance provider that gets you what you need when you need it.  

Not that it helps you with your current situation but that's just one of the benefits of having an independent agent handle your policies.  When you work directly with the insurance company, you as the client are the one having to do the leg work in regards to the servicing.  With an independent agent who works for you and not the insurance company, those types of situations are handled a lot more smoothly behind the scenes while you worry about other investment property concerns.  And NREIG is by no means always the lowest priced.  There are plenty of property package carriers that are just as competitive and can be purchased through an IA.

Hi Josh - I work with the NREIG team. We’re sorry that you felt you received poor customer service. We looked into your interactions with our team. Anytime a change or documentation is requested from a third-party, our process is to reach out to the client and confirm before we take action. In this case, it looks like it did take more touchpoints than usual to finalize the request. This is not typical of the service we strive to provide. We’ll work to be better for you and others in the future! 

The apology is a little late.  The delay in closing cost me 10's of thousands of dollars and could have easily been avoided.  Besides the 14 e-mails over the 14 days, I had 3 phone conversations with my account representatives supervisor and even that didn't make a difference in getting the items that I needed.  

I have experienced the exact same inefficiencies at NREIG.  I like the ease of use and keep 20 to 25 properties covered by them. However save every single communication you have with them. They have failed to cover two of my properties this year due to their error. I have had to prove my case with saved emails. 

This is going to make me shop other alternatives since I have not checked the market in a while.

I have not had a claim with them but I am concerned there will be issues when I do.

Update: Just got feedback from them on their last error. I will be moving all my properties. Their processes and systems are just not reliable enough for me to trust them.

Where did you end up moving your properties to? I’m on the search for a good insurance company... more specifically for builders risk during my rehab... 

I also had multiple difficulties with NREIG.  

I manage a portfolio in excess of 30+ properties,

We were  insured with NREIG for a number of years. 

IMHO they were difficult to work with and found a lack of transparency.      You are insured though a "master" policy or certificate, and the actual carriers are ???

They were good at taking your money and timely kicking out certificates of insurance, but if you have a claim, that is a different story.

While they paid a fire claim (an ex-lover of the tenant set the dwelling on fire, because the tenant purportedly broke up with him) NREIG made it difficult, and attempted to undervalue the claim on the basis the property was not properly insured.   While NREIG claimed that the property was under insured; NREIG was the one who determined the square footage and value, we had nothing to do with these details.   This all came from NREIG's proposal.

They did pay, but it seemed to be unusually cumbersome. Hindsight being 20/20 we should have hired a public adjuster.  

We had another claim whereby a tenant claimed that they were injured by a kitchen cabinet which came loose from the wall. (In reality, the tenant overloaded with heavy items not meant to be stored in a kitchen cabinet, damaged the property as a result of their own negligence.) 

We tendered the claim NREIG.  Mike, the CEO of the NREIG personally got involved with tenant and "negotiated" a settlement with the tenant on terms which included free rent, as well as a payment to be made by the landlord which we did not consent to.   The concept of the "free rent" was intended to keep the value of the claim below the deductible.   Again, this was done without our knowledge or consent.

There was one claim whereby we sent people to trim trees which were occupied by squatters.   The squatters threatened the landscape  personnel who were simply trimming trees which were objectively hazardous.   (A landowner has an affirmative duty to abate all known hazards.)  

One of the squatters claimed that the sounds resulting from the trimming of the trees caused her to get a heart attack.   This was obviously a bogus claim, but we had a liability policy with NREIG;  one of the most basis concepts in liability insurance is a duty to defend.   The carrier may issue a "reservation of rights" letter and ultimately deny indemnification; but generally they have a duty to defend.    NREIG summarily denied the claim, and suggest that we purchase a general liability policy from another broker; can you believe that!    We communicated to NREIG that litigation was contemplated. NREIG subsequently cancelled the coverage giving us 30 days notice.    Remember, this a portfolio in excess of 30 properties, of course you are going to have a claim or two.

Fortunately we were able to get replacement coverage with another carrier.   However, the underwriters of the new carrier observed and formed the opinion that the previous insurer had undervalued their prior coverage; we suspect to give the illusion of lower premiums.

Perhaps others have had better experiences with NREIG, however I cannot recommend them.

Updated almost 2 years ago

There was one injury claim which resulted from when we sent people to trim trees adjacent to a property owned by us which was occupied by squatters. The squatters threatened the landscape personnel who were simply trimming trees which were objectively hazardous. (A landowner has an affirmative duty to abate all known hazards, moreover the trimming the trees would objectively benefit the squatters.)

Updated almost 2 years ago

Update/clarification: As discussed above, the squatters were NOT living in the trees. LOL They were squatting in a dwelling adjacent to trees and we attempted to trim them. One of the squatters claimed that she got a heart attack from resulting the attempted tree trimming activity.

I cant agree with @Casey J Burkhead more!  

Working with an independent broker who is your advocate as opposed to the company's advocate is a huge advantage, especially when it comes to claims situations.  Although sometimes the premium may be  slightly more expensive, it is always great to know the agent you work with is actually on your side and not tied to a specific company.