Today’s topic will be all about rental loss insurance. We will teach you and show you how you can actually find the right insurance agent for you so that way you can get assistance in all your Real Estate Investing endeavors.
Before we dive in, we have to consider that: One, not all agents are actually licensed to do rental loss insurance in all 50 states. Second of all, remember that real estate investing is a relationship-based business. The fact that you get along with your insurance agent does not necessarily mean he or she will get along with you.
It is very important that you find the right person for you. There are two ways that you can actually purchase a rental loss insurance:
- If you have a mortgage
- If you’re buying a property by yourself, cash, you don’t need any financing
This category, it’s fairly simple and easy because one, the bank will tell you exactly what you need coverage for because they’re the ones dictating the role.
Then, in addition to that you can actually ask or request the insurance agent to add a rental loss coverage. It gets a little tricky when you’re buying a property cash because you don’t necessarily know what is it that you’re purchasing or what is it that you need to buy, but for the most part, you will usually need coverage for the dwelling meaning the property itself.
Buy Rental Loss Insurance for your property: What is Line Coverage?
Line coverage is anything that has to do with rental laws, let’s say flood and anything that is actually extra depending on the need of the property or depending where you are.
It is very nice that you’re willing to go and talk to every single company out there so that way you can build your relationship skills and you can actually learn how to talk to people. It is ultimately very time-consuming for you and you might not necessarily get the best rate. The reason why is because you’re buying one policy as an individual so therefore you’re not going to get the most competitive rates available in the market. What do you do instead? You’re probably wondering.
If that’s the question, it’s very simple. All you have to do is work with an insurance broker. An insurance broker:
1. Has the experience already, and everything they do that is related to rental loss insurance. That insurance broker it’s one going to get to know you and get to know a little bit more about your property. This person is gonna ask the right questions to gauge or to understand what type of coverage you actually need for your properties, whether it’s for primary use or whether it is for your rental use.
2. Has many relationships built across the industry so why not leverage that relationship that this person has built? Why having to go out by yourself and do something that is so time-consuming and it’s only for a one time deal. Fulfill your leverage to this person. Because this person knows so many people in the industry, this insurance broker will have the ability to get you the best rates in the market.
What they do is that they all go ahead and they start sending their quotes to this insurance broker and he or she will send you the best three rates, the top three competitive rates and she’s going to compare them all side-by-side and ask which one you want.
All you got to do is just to pick an insurance. Now, some of the skeptical out there are probably thinking, “Well, how can I actually trust this person? How can I know this person is not going to try to sell me everything there is to be sold so that way she can make more money out of her commission or he can make a lot of money out of the commission?” With an insurance broker, things work very similar with a mortgage broker.
Rental Loss Insurance for your property: Insurance Broker goals
It is to their interest to find out the best rate available in the market for you because if things are too expensive you’re just simply going to go and build that relationship with another broker which means they won’t eat at the end of the month, they need to put food on their table, they have families to maintain, they have families to feed. It is their best interest to look out for you and get you the best rates possible because by you being happy and getting a rate that you can afford, they get to put food on the table.
Every year you renew the policy because it’s a rate that is affordable to you and at the same time you’re happy with the coverage, they get to keep a commission as well, that it’s recurrent over time because you chose to stay with that insurance policy. It is to their best interest to build a long-term relationship with you.
How can you find an Insurance Broker
That’s fairly simple. First things first, you’re just simply going to type insurance brokers either “near me” or in your city. You’ll find the list right there and you can see the extensive list that is available. You can actually expand the list and check out more places.
You can actually check them one by one. They all have the website. You can go by the reviews. First Brokers Insurance, for example, has a lot of good reviews.
Depending on the area that you’re looking for, you can actually check them out. They have their website and you can see what they specialize in. They have home insurance, they have car insurance and even life insurance.
That’s one way for you to find the insurance brokers. Another way you can find insurance brokers is just simply going by your zip code. You can type insurance brokers and then put your zip code.
They all have their website so feel free to actually check them out and find out to see if they specialize in the type of insurance that you are looking for.
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