You Need An Insurance Agent Like This

How do you find insurance coverage that fits your needs—no over-coverage, no under-overage, just the right coverage?

Cody Sperber here, and while I’m no insurance expert, I do know that insurance is important. Enter a critical member of your Power Team: your insurance agent.

Like a Policeman

Your investor-friendly insurance agent is a little bit like a policeman. Until you need one, you may play down their importance. When you need a good agent, they’re extremely important and it seems you always need them in a hurry.

So don’t shortcut the selection process for this member of your team.

The best-case scenario would be to have an agent who is also a real estate investor. That way they’ll be more in tune with your needs. You’ll need an agent who can offer same-day service. This agent will be able to write policies for both vacant and rental properties.

Ideally, your agent will invest the time to educate you on the different types of policies for investors—that way you’ll be sure to get placed in the right policy for you and your business.

“There are worse things in life than death. Have you ever spent an evening with an insurance salesman?”
~Woody Allen

Types of Insurance Needs

One of the first types of insurance needs that comes to mind is insurance for the properties you already own—probably rental properties. You’ll want the most coverage for the least expense in order not to cut too far into your profit margin.

This is big: Look for an agent who can put several options in front of you, explain them and help you to protect your investment at the lowest cost.

If you’re into flipping, then you must have coverage that includes liability and the structure while the rehab is in process. A good insurance broker will help you locate affordable temporary coverage: Coverage that will protect you from property damage and also potential lawsuits related to contracting.

Even if you’re just wholesaling, there’ll still be holding periods before you sell a property. You’ll want coverage during this period as most existing seller policies expire at closing.

Eventually, as your business grows, you’ll want insurance coverage for the business itself. This might include liability and possibly other coverage if you have an office outside your home.

“Insurance is the only product that both the seller and buyer hope is never actually used.”

~Uknown

Finding Your Insurance Agent

Look for a good independent insurance broker who is able to provide all the types of coverage listed above. And, as mentioned, look for a broker who understands all the nuances of real estate investing.

Network – talk with other investors at your REIA club meetings and check with Realtors and others in the industry. Ask around for the contact information of a trustworthy insurance agent.

Insurance is something you never want to be without. At the same time, you don’t want to pay too much and be over-insured. This is why your agent will be such a valued member of your Power Team.