Choose insurance agent that specializes in real estate?

Question

I am have two insurance agencies to choose from: one of them puts themself out there as "specializing" in real estate and the other is a general purpose one.  I've done business with both of them through companies I work for, but not through my own enterprises.

Question, is real estate insurance complicated enough that getting an agent to specialize in apartments is valuable?  My instinct is that specializing in insurance should be enough, that it is not like law where a sub specialty should be necessary.  Am I wrong?

I otherwise prefer the general one because it is more local, thus more convenient and better for networking etc.

Thanks

Bryan Hancock · Answer

Public adjuster:

Public Adjuster

Jansen International is who we used and they were freaking fantastic!

Chris Martin · Answer

My company has a general purpose, national company... and like Bryan we experienced a catastrophic loss.  The insurance company performed flawlessly on the claim and we have stuck with them. Highly rated companies should all be able to perform when you have a claim. BTW, we only claim major losses... and absorb small losses through our operating accounts. I don't know how much this makes a difference.

Paul M. · Answer

Pardon my ignorance, what is a public adjuster?  I assumed each insurance company hired their own adjusters to come out and inspect when properties burned down and such?

Bryan Hancock · Answer

I would really tend to go with the person that specializes in real estate.  We had an apartment complex burn down earlier this year and the only reason I saved a ton of money on the co-insurance stuff is because I read about it on BP and protected myself.  A regular agent that doesn't specialize in property may or may not know enough to indemnify you properly.

Your local apartment association can likely point you in the right direction.  You may also try calling some public adjusters in the area to see which lenders they recommend and work backwards.  The public adjuster knows who pays off claims and who tries to weasel out of paying.  That is really all that matters when you start comparing prices for policies to select the right one for you.

Bruce M. · Answer

Paul, Insurance has been one the biggest thorns in my side the last few years.  One problem for me is I own some properties in FL which is a horrible state for insurance purposes.  I have spent a lot of time on insurance and I do believe someone specializing in real estate and what we do are worth their weight in gold.  I have a personal insurance agent but she does not insure any of my rental property.

There are certain coverages that are better to have for landlords.  Many times I have found you will not get loss of rents coverage with a standard policy, for example.  There are times when you may want to be on a commercial form versus a personal form, and vice versa for cost reasons.  It is important to understand the differences too and an agent specializing in what we do can explain it.  Simply put, they tend to understand our business.  It can also be difficult if you want an umbrella over several rental properties, and usually a real estate specialist type broker knows how obtain such coverage.