One of the biggest issues that investors and owners deal with in the single family and multi unit rental space is insurance. It’s a necessary evil. Nobody wants it but everybody has to have it. At Renters Place, we take pride in providing turnkey services for our investors so they don’t have to do anything. One of those services is property insurance for our investors’ properties.
Challenges and Solutions
First of all, Renters Place has 2-licensed insurance agents on staff, which provides us with opportunities to help our investors that other Property Managers cannot provide. We have seen and experienced the challenges that insurance can cause for our investors, so we decided to provide a solution.
We partnered up with insurance companies to provide a Master Real Estate Policy designed specifically for investors. The coverage and price is some of the best you can find in the market.
Insurance Pricing
Challenge: Insurance prices for rental properties are all over the board and most of them are cost prohibitive for ROI.
Solution: The cost of the Renters Place Master policy is as low or lower than any policy in the industry.
Property Inspections
Challenge: Insurance companies want to do inspections on the properties they insure and a majority of the time they will want you to expend more money into repairs or want to charge more for vacancy.
Solution: We don’t do property inspections, so you don’t have to worry about being declined, vacancy or putting more money into the property for unnecessary repairs.
Liability Limits
Challenge: Most policies only allow for $300,000 limits of liability or one limit for the entire policy.
Solution: We provide 1 million per occurrence and 2 million aggregate limits PER Property for liability – NOT per policy.
Excessive Coverage Challenges
Challenge: Insurance companies want to cover the property for more than your loan, market value or what you have in the property. They simply have a formula that they have to follow which usually equates to insuring the property for more coverage than an investor wants or needs to pay to insure.
Solution: Our Master policy lets you decide what you want to insure for the property. This alone allows investors the flexibility to save money and you will not have to contact your agent every year to negotiate a lower coverage and price amount.
Administrative and Billing
Challenge: If an investor has multiple properties then keeping up with paying the premiums and reviewing coverage can become an administrative nightmare.
Solution: No more paper bills, we bill you for insurance out of the rent received from your properties. This reduces your administrative costs and the time spent on paying insurance bills.
Vacancy Issues
Challenge: Most investors do not realize that insurance companies do not insure vacant properties and that if a property becomes vacant and a claim arises that their insurance coverage is decreased. This means that certain things will not be covered if a claim happens while the property is vacant.
Solution: Our Master policy does not exclude coverage for vacant properties.
Age & Location
Challenge: Most companies charge more or simply won’t insure properties based on Age and/or location. Solution: Neither age or location is an issue. Our insurance prices are based on a fixed rate, regardless of the age or location of the property.
Actual Cash Value & Co-Insurance Penalties
Challenge: This is a tough one to explain without personally spending time talking to investors in depth about these issues. Basically, ACV and Co-Insurance causes an investor to be paid less than anticipated on total losses.
Solution: Our policy does NOT have Co-Insurance penalties and pays a stated value in the event of a total loss on your property. The benefit to investors is if you insure your property for $100,000 then you will receive $100,000 minus your deductible on a total loss.
In Summary
At the end of the day, the Renters Place Master insurance policy saves investors time and money and allows us to provide better service than our competition.
If you’re looking for someone to help you find, acquire, renovate, sell and manage property in Tulsa, we hope you will give us a call. We’d love the opportunity to talk to you and let you know what we can do to help you in the Tulsa market.
