Real Wealth Show: Real Estate Investing Podcast The Investor’s Guide to Landlord Insurance, Co-Insurance, and Insuring Against Extreme Weather
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Jun 27, 2025 Seth Markum, an insurance expert from NREIG, shares valuable insights on the crucial role of insurance in real estate investing. He discusses the essential differences between landlord and homeowner insurance, emphasizing the unique risks rental properties face. Markum dives into the challenges of insuring against extreme weather events and the need for named storm insurance, especially for vulnerable areas like Florida. He also explains innovative solutions like parametric underwriting to tackle traditional coverage shortcomings. Perfect for property investors navigating today's climate!
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Landlord vs Homeowner Insurance
- Landlord insurance is specifically designed for rental properties, unlike homeowner's policies which cover owner-occupied homes.
- Using a homeowner policy for rental property risks non-payment at loss because commercial ventures are excluded.
Weather Impact on Insurance Markets
- Extreme weather events have increased in frequency and severity, affecting property insurance availability.
- NREG actively seeks multiple carrier partnerships to ensure coverage options for clients in difficult markets.
Avoid Costly Coinsurance Penalties
- Always insure to at least 80% of your property's replacement cost to avoid coinsurance penalties.
- Ask your agent about coinsurance clauses to prevent reduced claims payouts at loss time.