Understanding Real Estate Investor Insurance


Understanding Real Estate Investor Insurance

By: Adam Matheny

Real estate investors insurance is not just for “flippers,” it is intended to be there for investors who rent their properties out rather than sell them. There are in fact more reasons to make sure your properties are adequately protected when they are used as rentals than when being flipped.

Slip/Fall Injuries

Your insured’s tenant has a small get together. One of the guests slips on a loose step and gets hurt. Lack of maintenance generally falls to the landlord, not the tenant.  If they have the right real estate investment insurance, the bills will be paid by the insurance policy. On top of this, if the person should choose to sue the insured for damages, the insurance company would also be there to provide defense in court and coverage for financial losses they might incur.

Structure and contents

If your insured rents their property out furnished, with appliances, curtains, fixtures, etc and there’s a fire, real estate investor insurance can help replace those items. Without real estate investor insurance, the insured would have to replace those items themselves and, if they can’t, possibly charge less rent as the property is no longer as valuable.

Additionally, an often excluded coverage on rental policies is vandalism. Real estate investor insurance offers coverage for vandalism, even for vacant property.

Things to Consider When Looking for REI

There are several things you should be looking for when comparing different REI providers. First, keep in mind that no two insurance providers are the same. Take time and do your homework, this will make it a lot easier to protect your customers correctly.

Adaptable and Adjustable – the last thing you need is an insurance policy you can’t make any changes to during the year. What if the insured buys or sells a property? Should you have to continue paying for a property you no longer own or must purchase a separate policy for any new property you buy during the year?  Be sure your REI policy provider allows you to make changes as and when you need to.

A Single Payment – Trying to keep up with individual payments for multiple properties can become frustrating and can lead to missed payments. Make sure you can add or subtract properties and make a single payment for all your properties.

Multiple Types of Property

Most real estate investors have vast portfolios, including rentals, flips, and vacant properties. They need insurance that covers it all. Keep in mind; you should look for a provider that covers single-family homes, duplexes, apartments, even condos, pretty much any type of property investors are likely to invest in.

Partner With The Best

Flow Insurance Services offers a great real estate investor program. Place your trust in us and let us help you to write more business. When it comes to growing your business, things can be challenging. Embrace the opportunity of real estate investor insurance!

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