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13 Insurance Myths for the Real Estate Investor…

www.nreinsurance.cominfo@nreinsurance.com

888-741-8454

1. Insurance is exclusive of… estate, tax, and financial planning.

Insurance: Your archer in the watchtower, not your castle walls…

To protect Personal and Business items within your castle, walls--- Insurance should NOT be the foundation… of an asset protection strategy.

The legal entities we create are the castle walls, the moat and the watchtower we build to protect them...

Insurance is “the archer in the watch tower” or the” knights with the boiling oil”.

2. Being named as an “additional insured” on the existing homeowner policy will sufficiently protect my interests in a subject-to and/or lease-option deal…

3. Buying a property in your personal name and using your homeowner’s policy liability is fine…

4. The “personal” dwelling fire policy is sufficient (“cheap”) to cover my non-owner occupied rental…

5. I have a personal umbrella policy (PUL), so I don’t need “commercial insurance”…

• Umbrellas are not a panacea...

• “Personal” coverage likely doesn’t cover “business” exposure(s)

• How much is enough?

6. A claim that occurred before I (or my entity) owned the property shouldn’t affect MY insurance rate…

7. “All-risk” insurance covers everything I need…

• ACV

• RC

• Agreed or Market Value

• Basic

• Broad

• Special Co-Insurance---what is it? What it isn't!

8. Self-insurance is too risky…

9. I need “builders risk” coverage for a vacant or rehab project/deal/property…

10. It is worth it to hire the “handyman” to do work on my rentals…

11. If I use my personal vehicle to service my properties, my personal auto policy is sufficient...

12. It's enough to simply require renter's insurance in my lease...

13. Cheaper is better…

Questions/comments/concerns?

• www.nreinsurance.com

• info@nreinsurance.com

• 888-741-8454

“The right coverage at the right time”