Legally Ever After Episode 07: Insurance Tips for Real Estate Investors

“It's important to review your policy every year because things change, codes change, and policies change,” explains Aaron Beckman, Madison Insurance Group. An insurance professional, Aaron understands the tricks of the trade. Today, he shares his insight to help investors navigate the insurance process and determine their best practices.

If you’re an investor, it’s likely you have tenants. It may seem obvious, but having different insurance for different tenant relationships is crucial. If you have long-term tenants, your policy must reflect that, and vice versa with short-term rentals. Ultimately, you should ensure that all your bases are covered to gain ultimate protection.

If you’re an investor, navigating the complications of insurance is critical. Learn more about listing your insurance under your LLC, the importance of having a clear rental agreement, and what to look for in an insurance advisor.

Quotes:

“If you're going to move your investment properties into another entity outside your name, whether a trust or an LLC, make sure your policy has the name of who owns that property listed on the policy.” (00:54-1:11 | Aaron)
“An insurance contract is the most sold and least read contract that people buy and enter into.” (6:11-6:16 | Aaron)
“It's important to review your policy every year because things change, codes change, and policies change.” (7:34-7:40 | Aaron)
“If you're an investor getting into development, sit down and have a lengthy conversation with your insurance broker and lawyer and put good controls in place to protect yourself.” (9:29-9:46 | Aaron)
“If it's too easy to get insurance, it's probably not the right insurance.” (12:40-12:46 | Aaron)