STAY AWAY FROM NREIG (National Real Estate Insurance Group)

[Josh Miller]

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.  

[Adam Craig]

I still have the same insurance. I based my insurance company for not covering it but later found out this isint something most insurance companies would cover. I have a personal umbrella and business umbrella for 1 and 2 million.

Originally posted by @Jonathan A.:

@Adam Craig wouldn’t you guys put a as-is condition on your purchase contract?

I disclose all mine and a lot of addendums regardless how small the changes are. Even send them previous inspection report when I bought it and give them a list of what’s done. I give them Engineering report For any structure changes. I agree, people sue whatever whenever no matter how ridiculous their reasoning behind it.

I saw that Crazy documentary long time ago and it’s crazy how the authorities/court don’t even recognize these as bogus.

We typically don't have any previous inspection reports we nromally buy houses as is sometimes and more times than not lately without even seeing them. 

[Chad U.]

Steer clear of NREIG!!!! We had a policy with NREIG on an REO recently that was vacant, which was gutted by a major fire. Even though it was reported as vacant, we were denied the claim by their carrier, due to there being no working smoke detectors found. I believe the fire was started by a squatter.

This requirement, as ridiculous as it sounds, was in the master commercial policy, a copy of which had never once been provided nor had this requirement ever been stipulated by the agency. After this incident, NREIG now requires you to sign off every new property added to the portfolio stating it has working smoke detectors.

I guess this was a learning experience for them, and they now require sign off to acknowledge this requirement. Unfortunately, we were the guinea pig!

[Jonathan A.]

@Chad U.I would consult a lawyer for sure. Also I never liked NREIG on our initial engagement. I already the bad vibe about them so I never hired them. Sorry to hear your troubles

[Kaustubh Johri]

I am looking to switch from NREIG. Who did you guys go with eventually..I know this thread is a couple of years old 

[Kari Tekle]

Hello! I am a new real estate investor doing a flip in Alabama and need to purchase insurance. Can someone here recommend which insurance companies to look at? I almost went with NREI but am staying away based on the stories shared here. Thank you in advance!

[Kaustubh Johri]

So multiple folks seem dissatisfied by NREIG, however I do not see any mentions of alternate insurance providers either? Any investor friendly options outside of NREIG, with lower deductibles ($500-750) and reasonable premiums? 

[Tarek Saad]

I've used them for several years now. They are a bit clumsy sometimes with the emails, but the online portal is good. Compared to local insurance companies (I've used Farmers, state farm, and a several others over the past decade + of doing real estate) save me hundreds on monthly premiums. We have 60+ homes with them. I’m fixing to make several roof claims from recent storms that happed here last month… We will see how it goes.

[Jonathan A.]

@Kaustubh Johri Depending on your location. I have used different carrier on different location. For KCMO, I use shelter insurance, here in vegas, I use nationwide. I haven't made claim from shelter but my agent from shelter is extremely helpful. For Nationwide, I have great experience both on insurance cost and claims. Super fast on claims and easy.

[Kaustubh Johri]

So multiple folks seem dissatisfied by NREIG, however I do not see any mentions of alternate insurance providers either? Any investor friendly options outside of NREIG, with lower deductibles ($500-750) and reasonable premiums? 

[Jay Compton]

I think you would find a hard time getting a low deductible AND a low premium...really from any carrier today. Before I started with NREIG 3-4 years ago, I had Cincinnati write my builders risk and GL. Cincy is high, but they're good and they pay if you have a claim. 

Just know going into any builders risk policy, you're going to pay a lot higher premium than a typical homeowners policy or even a landlord/tenant dwelling policy, and most of the time you'll be getting a glorified ACV policy versus the RCV policy you're used to on your personal home. BUT...you're also paying a higher premium because there's a much higher risk with a vacant property. There's no one home to put the fire out or turn the water off if a pipe burst. (My current builders risk policy with NREIG doesn't cover ANY water damage at all, but we have a fire & water restoration business too, so I can handle that).

We all know this already, but there's no free lunches in this world. When you have a claim, you're not going to get the benefits of being insured by Cincinnati or Chubb, all while paying the premiums of NREIG. It's just not going to happen. If you want the best coverage in case something happens, call an independent agent and tell them you want a policy with Chubb...then be prepared to write a big fat check for that premium.

As Dave Ramsey used to say, drive into any major city in the US and look at the names on the largest buildings downtown...usually either an insurance company or a bank, or both. You don't pay for those big buildings with low premiums and cheap rates.

Good luck...

Jay

[John D.]

Originally posted by @Clay Smith:

Originally posted by @Akin Okegbile:

Originally posted by @Clay Smith:

Of course you're having a stellar experience.. You haven't had a claim. Relationships with Insurance companies are generally peachy untill having a claim. 

I have a claim in right now for a fire. We shall see

How did your claim go?

[John D.]

Originally posted by @Tarek Saad:

I've used them for several years now. They are a bit clumsy sometimes with the emails, but the online portal is good. Compared to local insurance companies (I've used Farmers, state farm, and a several others over the past decade + of doing real estate) save me hundreds on monthly premiums. We have 60+ homes with them. I’m fixing to make several roof claims from recent storms that happed here last month… We will see how it goes.

How is your experience going thus far since its been a couple of months?

[Tarek Saad]

So far so good, still in claim processes but no hiccups just yet... I’m going through my private adjuster so is making the claim go slower than wanted.

[Yousuf Khan]

As a long term NREIG customer with multiple properties, I have to say that I have only had positive experiences with them. For a digital-first business, I have been pleasantly surprised with how quickly I can get someone on the phone or my problems solved quickly.

Sorry that you had to go through that with them. I just want to share my experience with everyone.

Thanks,

Yousuf

[Andrew DeWeerd]

Is NREIG like the esurance of property insurance?  Looks like they only insure business/entity owners, not private owned investments?

[Jay Compton]

@Andrew DeWeerd I've never asked NREIG if they would cover a property owned in my personal name. Since around 1993 or so, I've always bought investment properties inside an LLC, for the asset protection they're "supposed" to provide. I know anybody can sue anybody for anything nowadays, but it makes me feel a little better to separate business from personal.

Since our policies with NREIG kind of piggyback off their master policy, there's probably some clause in the master that will only allow them to add investment properties held in company names....just guessing here, but it makes sense.

BTW, the comment this original thread started from, is much easier today. I can now log into my NREIG portal online and print an invoice or coverage statement from any property I have with them.

Jay

[Julie Prewitt]

@Andrew DeWeerd Full disclosure, I work in NREIG's marketing department. To clear up this question - we can insure any investment property regardless of ownership entity as long as it meets the underwriting criteria as set forth by the carriers that underwrite our program (there are limits on unit size, number of stories, wiring type, requirements that buildings meet code and are well maintained, etc - no different than any other program or insurance company you may engage with). If you own the property in your personal name, we can insure that. If you own it through an LLC, we can insure that too. If it is owned through a trust or IRA....yup, we can insure that too. That is one of the things that makes us a little different and flexible for investors.

Thanks for your comments @Jay Compton - over the past 2 or so years, we have made many positive changes to our processes, technology, and team (at both the executive level as well as the client sales, service and support teams). While nothing is ever perfect, we take feedback from our clients seriously and strive to do better everyday. Thanks for your

[Ali Zain]

Ok well all these incidents still definitely make me stay away from nreig. I'm in oldsmar/Tampa area, can anyone recommend a solid rental property insurance broker please? I suppose they don't have to be in my area could be in Naples, Sarasota etc but I prefer in state.

[Nelson Torres]

I use NREIG for one of my properties even though they are a little more expensive than other carriers. So far, so good. However, I use RE Insure Pro, which my broker recently told me is a subsidiary of NREIG, for another property. They have not been fun to deal with. I put in a claim (my first one ever, by the way) and have not been able to get an update for 1.5 months now. 

My broker has not been able to get any info from them so I tried calling myself. When I called, the phone would ring and ring, no answer. Someteimes I'd get vmail. Any person that I have spoken to was not able to give me an update. 

Fortunately the claim is not for an emergency but it is for an issue that is somewhat time sensitive... 

I'd shop for another policy but don't want to have issues with a preexisting condition.

[Jonthan Kiser]

Just to add a little perspective.  I had Allstate and when we had a fire on a property they treated us like arsonist.  They actually came out and cut samples from the carpet and had an investigator interview us (we were not even in the country when this took place).  The agent we used then proceeded to swindle our funds as they dripped in by using words like "courtesy" and then charged us a premium for that "courtesy". It took over a year to get half of the premium advertised to us.  We called lawyers but they said the company was so big that they were highly invested in top lawyers that would drag it out for so long the recovery would be a loss.  I have never used them since and never will.  Point is, they are all in the business to make loads of money and they do not make money paying claims.  So you need the insurance but you need to do the footwork to limit the possibility of having a claim!  That is the greatest value to your bottom line, YOU.

[Chan K.]

Quote from @Julie Prewitt:

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! 

 I want to echo to @Josh Miller regarding "Staying Away From NREIG". I insure a few mulifamily properties with NREIG. Without discussing or get an acknowledgement from me NREIG changed my portfolio coverage and jack up my premium across my portfolio by more than double. 

I called my client rep, but got an auto-reply that she won't be back until 7+ days without leaving any contact. I continue to call the general customer service line, but the person that picked up the call was so useless. 

Finally, I pulled down the proof of insurance from their website portable. I began to do some comparison. So far, I found out that, they did the following changes without asking me or get any acknowledgement from me. Today I got a bill that is 100% more than what I used to pay - my blood was rushing

- They increased my building coverage

- They changed from "cash value" to "replacement value"

These 2 updates that they made cost my portfolio to go double. All and all, it happens in the background without me knowing or without sending me any paperwork to inform me about these change if I want to move forward ..etc

My question for you Julie: 

Ethically, how can you guy make change like that without any agreement with the customer?

You guy made those changes and the premium went up more than double and you charge the customer credit card automatically. Do you feel right doing that?  

[Julie Prewitt]

Hi @Chan K.,

I’m sorry to hear about your experience. Our team has worked diligently with our carrier partners to keep rates stable for many years. Unfortunately, factors like a hardening property market, inflation, labor shortages, increased building costs, and an increase in claims frequency and severity have caused our carriers to require increases to both rates and coverage amount minimums to keep up with these market conditions. Per the Participation Agreement all insureds sign, we are a monthly reporting program and are required to provide a 30-day notice outlining any coverage or cost changes, which was sent via email.

Our intent is to always update clients as quickly as possible of any changes, and provide excellent service. We apologize that you had difficulties reaching us. In talking with the team, I understand that a CSA is working with you on coverage options to best fit your needs and budget. We value you as a client and hope to continue to earn your business. Thank you!

My best,

Julie

[Marco Padilla]

We've been with NREIG for a few years now and as of last year and up until now it's been nothing but headaches. We too are looking to move our portfolio out of NREIG. We are out of state investing too and are thinking of going with a local insurance agency see how that works for us.

[Chris Seveney]

Quote from @Marco Padilla:
We've been with NREIG for a few years now and as of last year and up until now it's been nothing but headaches. We too are looking to move our portfolio out of NREIG. We are out of state investing too and are thinking of going with a local insurance agency see how that works for us.

 we use JB lloyd and have been very happy with them