Creating an Entourage of Experts – Part 6- Choosing an Insurance Agent
If you missed the previous article – Creating your Entourage of Experts – Part 5 – Choosing a Lawyer
A Canadian full time real estate investor must be not only building massive income, but passive income as well. With massive income, we have short-term holds, flips, assignments, and many other strategies that we discuss in our trainings. The long-term hold on the other hand, is primarily utilized for monthly passive income, as well as massive income at some point, depending on what exit strategy is being used.
A necessary evil
Property insurance is a necessary evil in the real estate investing business. When acquiring property of any kind or involving tenants in our portfolio-building, we must have proper insurance in order to be sufficiently covered in case anything goes wrong. We must be cognizant of the fact that insurance policies need to be created so that you have the best coverage possible.
Tell them everything
They pay insurance adjusters and investigators a lot of money to find reasons not to pay out claims. We must be very careful to provide all details necessary to the insurance agents in order for us to have complete coverage. It is a mistake to omit something in order to get cheaper insurance … it may come back to bite you.
When we interview our insurance agents, we need to find out if they are investors themselves. Ask them if they understand all the pitfalls of the rental property. Ask them if they can provide insurance, not just for us, but for our tenants as well, in a separate policy.
We need to ask the insurance agent if they can explain a better way of insuring a property, or properties that we have, as well as what can we do to our properties in order to get a better rate.
The important thing to note is when dealing with an insurance agent, that they work for a reputable firm. It may be hard to get your cash from a claim with non reputable company.
If we call for any reason, they must get back to us the same business day. We have to know, if there is a claim, how long it takes to get paid out of that claim. Of course you should discuss about some "what if" situations to see what the answers are.
Insurance is a necessary evil but so must find the best insurer so we are able to sleep at night knowing that we are fully covered, should any surprises occur.
Canadian Wealth Builders offers many unique, practical, "out of the box" real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.canadianwealthbuilders.com
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