Insurance might not be the most exciting topic, but it’s crucial. Imagine your house burning down and realizing you could have had a slick payout if you’d chosen the right policy. That’s when insurance looks pretty darn appealing. Today, we’re going to break down the three essential steps to getting your insurance right. We’ve got James Jenkins, a seasoned insurance pro, here to guide us through this.
Knowledge is Power
First things first, you need to know what you’re getting into. Most people start in real estate without a good grasp of insurance. As an investor, you should focus on what you’re best at—finding and closing deals. But when it comes to insurance, get enough basic knowledge to choose the right agent.
You need to vet your insurance advisor. Don’t just go with someone because they saved your friend money. Post on social media for recommendations, but dig deeper. Look at Google reviews and third-party ratings. Find out if they’re helpful when it counts—during a claim. Ask potential agents about their experience with claims, not just how much they can save you.
Look Past the Company Name
Big insurance brands spend millions on marketing, making you think their name equals quality. But that’s not always true. The name on the company isn’t as important as the agent’s ability to serve your needs.
Financial stability matters. Use resources like A.M. Best to check a company’s financial health. Brokers often recommend smaller companies that you might not recognize. These companies can be just as reliable as big names, sometimes more so. Make sure any company suggested has a solid A.M. Best rating.
Dissect the Dollar
Lastly, consider what you’re actually paying for. There’s a difference between small money (your premium) and big money (the value of your asset). Cheap policies might save you a few bucks but what happens during a claim?
Most claims fall into three categories: wind, hail, and water damage. Make sure you’re not cutting corners on these. The extra cost can save you a lot when disaster strikes.
Your advisor should help you manage risks. Discuss deductibles and types of coverage. Determine how much risk you’re willing to take and make informed decisions.
Navigating the world of insurance might seem daunting, but with the right approach, it becomes manageable and beneficial. By gaining basic knowledge, thoroughly vetting your insurance advisor, and looking beyond big brand names to consider financial stability, you set yourself up for success.
Always remember to dissect the details of your policy to ensure it truly protects your investments when it counts. With these steps, you’ll not only secure the right insurance but also gain peace of mind knowing your assets are well-protected.
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