Insurance Challenges Faced by Real Estate Investors

Getting solid insurance for real estate investors is a pain. It's time-consuming and confusing. Most investors struggle to juggle multiple carriers and policies.

Does that sound like you? You're in the right place.

I'll show you a way for you to streamline the insurance process, how it works in your asset protection plan, common issues you probably experience with your insurance, and how Royal Legal Solutions can help.

Where Does Insurance For Real Estate Investors Fit In My Protection Model?

Insurance for real estate investors is your first line of defense in protecting your assets.

The first advice you got as a real estate investor was, "buy deals." It's excellent advice and the first step in securing your financial freedom. Typically, that's where mentorship stops, and there is an information void on the next steps you need to take.

We're here to tell you that the next step is securing reliable insurance for real estate investors. Typically, banks require you to get property insurance to cover natural disasters like fires and floods. In addition, your property insurance provides partial protection (with some exceptions) if an accident occurs on your property.

You acquire more assets and need more policies as you invest in real estate. Thus, your insurance situation becomes more complicated. For instance, savvy real estate investors who want more asset protection also get umbrella insurance.

In general, an umbrella policy covers:

  • accidents that go beyond basic insurance required from the bank
  • broad spectrum of occurrences
  • gap between insurance(s)

Remember, insurance is your first defense against accidents and natural disasters. Things get complicated for real estate investors as you own more assets, so you must purchase more policies.

What Issues Accompany The Insurance Process?

Some of the issues you might encounter when getting proper insurance include:

  • You might find that your current carrier isn't licensed to sell coverage in different states or for certain assets.
  • General and local insurance carriers do not have a solid understanding of the real estate investing business.
  • They may not be able to best advise on the most cost-effective and efficient solutions for you.
  • You will find yourself dealing with multiple agents working with different companies.

The lack of a holistic solution drives the risk of having unacceptable levels of coverage. You could be paying for more than you need or have gaps that make you vulnerable.

Reach out to discuss how Royal Legal Solutions can offer you a single point of contact and the best coverage for your liability, life / whole life, and annuities insurance. That frees you up to focus your energy on your business goals.

Why Do I Need Insurance Specific To Real Estate Investors?

It would be best to have insurance tailored to your needs as a real estate investor to provide total, bulletproof protection to your assets.

The reality of being a real estate investor in our litigious society is that someone will sue you one day. The question is, will you be proactive or reactive?

Your property insurance is limited to accidents and low-dollar claims. Luckily, it will cover most of the risk most of the time. Insurance is the most cost-efficient way to protect your property. Still, the way you get insurance is a sometimes laborious process.

The old way of finding insurance through a large commercial carrier is cumbersome. You have to deal with multiple points of contact who do not know your specific needs as real estate investors. That is a time and cost-inefficient system.

The new way of getting insurance finds real estate and small business specific providers that:

  • adjusts quickly to your needs and is highly available
  • finds advantageous policies for you
  • provides explicit, detailed, efficient knowledge and solutions
  • uses agents and brokers who service only real estate investors and small businesses

How Is Royal Insurance For Real Estate Investors Different From My Current Insurance?

Royal Insurance for real estate investors is a service level agreement that acts as part of the RLS one-stop shop for bulletproof protection. It works in conjunction with our:

The value comes from having a single, dedicated point of contact with Royal Legal Solutions. With a streamlined, single point of contact, you will have direct access to our insurance wing for assistance with the following insurances:

  • Auto
  • Commercial
  • Residential
  • Personal

Our provider network consists of:

  • 68 direct to carrier relationships (liability policy)
  • 63 life/whole life
  • 36 annuities and other insurance investments

We will tailor your coverage specifically to your situation. The way we do that is with our provider network. That extensive network makes the providers compete and gives you a market edge. Ultimately, you will save money, cover any gaps, and reduce time wasted trying to contact an agent. And the best part? Our focus is on real estate investors and the nuances they face carrying multiple policies on various properties. Simplify your life with a single point of contact for all of your insurance needs.

Take our insurance quiz to get started and book your consultation.

If I Have Bulletproof Protection, Why Do I Need Insurance?

Insurance for real estate investors is its system of protection. Your LLC is the fallback position after your insurance carrier either pays the coverage limit or fails to protect you.

Cases in which your insurance will not protect include (but are not limited to):

  • allegations of fraud
  • breach of contract
  • gross negligence
  • high claims, accidents, liability

You want to stack protections. That's when your LLC covers the rest via asset protection with your anonymity structures in place.

Key Takeaways

It's critical to invest in proper asset protection to mitigate your liability and risk. Otherwise, you'll be in a rough spot when you get sued, and the lawyers come calling. This means you need to get reliable insurance specific to your needs as a real estate investor.

If you want to learn more about how to protect your assets (and, by extension, your livelihood), watch the replay of Royal Investing, Episode #18: Insurance Challenges Faced By Real Estate Investors, with Scott Smith.

Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

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