You don’t know what you don’t know. And it’s what you don’t know that gets you every time!
Insurance for real estate investors is largely misunderstood and is frequently purchased without a solid understanding of what the buyer is getting. For example, do you know:
· If you buy a property subject-to, and are named additional insured on the seller’s policy, are you covered?
· What kind of insurance will leave you with no coverage if you buy a rehab property in your LLC name?
· If your umbrella policy covers your 5-unit?
· How a previous claim filed by the seller affects your rates?
· What the acronyms really mean? ACV, RC, ITV – and what it means to your rates and your coverage?
· What self-insurance really means?
· What kind of policy you need as a rehabber with an empty construction project?
Now before you start snoozing here, remember that insurance costs hundreds of dollars per year, or even per month if you have multiple properties. And if you have the wrong insurance, and file a claim, THEN is when you find out you’re not covered properly!
Tim Norris specializes in insurance for real estate investors and has spoken nationally on the subject for 15 years. He can help you get the most out of your insurance dollar and will be available to answer questions.