Author: Spire Advertising

Premiums for real estate investment insurance are skyrocketing all across the country. Before you renew your existing coverage, take these tips into consideration. Could you be paying too much for your insurance?

1. Shop Around and Compare Quotes

It might feel like a hassle to shop around for insurance quotes, but with real estate investment insurance, the savings can really add up. We recommend securing quotes from several different insurance companies to compare coverage options and prices.

2. Assess Coverage Needs

If you’ve made improvements to your property, had any claims, acquired more property, or had significant changes in tenancy, it’s definitely time to evaluate your coverage to make sure that it matches the property’s value and specific risks.

At the minimum, you should assess your coverage annually.

We’ve also seen a lot of market fluctuation in the last few years, which can affect your coverage needs. 

3. Consider Deductibles

One way to save on your premiums is to opt for a higher deductible. If you go this route, you want to make sure that the deductible you sign up for is an amount you can afford to pay out-of-pocket in case of a claim.

4. Review and Improve Property Security

Regular maintenance and risk reduction, like adding alarm systems, fire extinguishers, and secure locks can reduce the risk of claims and potentially lower premiums.

5. Evaluate Location Risks

As you make changes to your real estate portfolio, be sure to investigate the property’s location for natural risks. While we typically don’t have to worry about earthquakes or hurricanes, there are many areas that may be flood-prone in Ohio, which may require additional coverage and increase costs.

Also take into consideration the crime rates in the area. Properties in low-crime areas may have lower insurance premiums.

6. Understand Policy Exclusions

How well have you read your current policy, and just how protected are you? Carefully review what is and isn’t covered to avoid surprises and ensure you’re not overpaying for unnecessary coverage. 

TC Parker and Associates can help you discern your current policy and point out places that you could be saving.

7. Consider a Master Policy

This is our area of specialty! For investors with multiple properties, a master policy is frequently more cost-effective than individual policies for each property. It’s also far easier to manage.

8. Evaluate Coverage Options

There are two ways to insure your properties: actual cash value and replacement cost. The latter typically offers better protection but may be more expensive.

9. Risk Management Strategies

You can put in some legwork to reduce your risks without contacting any new insurance companies. Through a thorough screening process, you can reduce the risk of property damage and liability claims. And make sure that your lease agreements clearly outline tenant responsibilities. This can mitigate the risk of claims and lower your overall expenses.

If you’re ready to explore how a master policy with TC Parker and Associates can save you money, Talk to an Agent. We’ll be happy to provide you with a quote before you renew your current policy.

Real estate investments come with inherent risks. Savvy investors, lenders, financial institutions, and insurance agents understand the importance of safeguarding their interests. 

T.C. Parker, a trusted name in the insurance industry, offers a suite of specialized insurance policies tailored to the unique needs of real estate professionals. 

We offer four key areas of coverage that cater to different stakeholders in the real estate landscape.

#1 Real Estate Owned Portfolio Coverage: Exclusive Shield for Investors

Real Estate Owned (REO) Portfolio Coverage offers tailored protection for real estate investors.

REO properties demand a specialized insurance approach, and T.C. Parker rises to the occasion with its Real Estate Owned Portfolio Coverage. This exclusive offering shields real estate investors from risks associated with owned properties, providing coverage for damages, liabilities, and unforeseen events. 

With customizable options including hazard, liability, flood, wind-only, x-wind, earthquake, ordinance and law, and loss of rents, investors can align the coverage with the specific nuances of their real estate portfolio.

T.C. Parker’s primary focus for REO portfolio coverage is a schedule consisting of residential (1-4 family) dwellings making up 80% or more of the portfolio. Your portfolio needs a minimum of 5 locations or future growth that will increase the portfolio to meet the minimum. We are also willing to consider terms for commercial, mobile homes, and residential 5+ units depending on your submission.

Note: We do not insure vacation or short-term rentals (AirBNB or VRBO), Standalone GL (unless vacant land), multi-family or apartments greater than 15 units, or mobile home parks/communities.

#2 Mortgage Impairment Insurance: A Shield for Financial Institutions, Lenders, and Investors

Mortgage Impairment Insurance coverage safeguards lenders and investors against financial losses arising from borrower defaults, property devaluation, or other mortgage-related risks. 

These errors in mortgage servicing happen outside of your control. Mortgage Impairment policies serve as a “backstop” in the event these errors or omissions impair the lender’s interest as a result of a foreclosure and uninsured loss.

This coverage is broad by definition and includes: 

• Coverage for loss from hazard and flood when coverage is insufficient or uncollectable due to an error or omission
• Real estate tax liability, defective title, etc.
• Loss of mortgage guarantee
• Life and disability coverage errors/omission

By mitigating these financial impacts, lenders and investors can enhance their risk management strategy and ensure the stability of their lending operations.

#3 Lender-Placed Insurance: A Crucial Layer of Protection

Financial institutions, lenders, insurance agents, and investors require a robust insurance solution to address the intricacies of their holdings. T.C. Parker’s Lender-Placed Insurance steps in to provide a crucial layer of protection. 

This coverage is designed to protect the interests of financial institutions by filling gaps in insurance coverage on properties within their portfolio. Lender-Placed Insurance protects your interest in your collateral against loss from physical damage, like fire, wind, water, vandalism, theft, flood, and collision.

With this safety net, financial institutions can navigate potential risks confidently.

#4 Blanket Mortgage Hazard Coverage: Comprehensive Protection

This comprehensive protection shields investors, lenders, and financial institutions from uninsured physical damage losses to properties in their portfolio. It allows lenders to provide coverage without requiring any insurance tracking or borrower follow-up on individual properties.

Blanket coverage options include:

• Dual-interest coverage
• Comprehensive all-risk protection

It covers residential and commercial first mortgages, second mortgages, HELOCs, condo units, and mobile homes. Blanket coverage eliminates hazard insurance tracking after coverage has been verified at loan closing. It also does away with the need to force-place coverage on uninsured loans. 

There’s no risk of a lapse in coverage, too. Properties are covered through the foreclosure process.

Investors, Lenders, and Financial Institutions Alike Choose T.C. Parker

T.C. Parker’s tailored insurance solutions cater to the specific needs of real estate investors, lenders, financial institutions, and insurance agents. Specializing in these niche policies allows T.C. Parker to empower stakeholders to navigate the dynamic real estate landscape with confidence. 

Choose T.C. Parker for specialized insurance solutions that go beyond protection – they empower success in every real estate venture. Learn more about these policies and connect with one of our agents to get started.