Navigating Insurance And Real Estate: Expert Insights On Property Protection & Investment
Sep 20, 2024
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Grant Johnson, founder of Varde Insurance Group and expert in both insurance and psychology, shares insights on navigating property insurance. He discusses what to consider when selecting coverage for investment properties and reveals how recent changes have made policies more restrictive. The conversation also covers the impact of inflation, the complexities of insurance claims, and the importance of building codes coverage. Grant emphasizes his consultative approach, aiming to connect clients with valuable resources while enhancing community support.
The insurance market has evolved with stricter regulations post-COVID-19, necessitating thorough risk assessment for investment properties.
Investors must prioritize specific insurance endorsements, like building codes coverage, to avoid significant out-of-pocket costs during repairs.
Deep dives
Understanding Insurance Market Changes
The insurance market has undergone significant changes in recent years, particularly influenced by COVID-19 and rising inflation. Insurers are tightening their underwriting criteria, scrutinizing policies more closely, and imposing stricter regulations than in the past. These evolving standards require homeowners and investors to be more thorough and informed when purchasing insurance, especially regarding the age and condition of properties. Understanding these shifts is crucial for anyone looking to invest in real estate or secure adequate coverage for their property.
Key Considerations for Property Insurance
Investors must recognize the vital factors that influence insurance coverage beyond mere policy acquisition, especially when dealing with older properties. Properties built more recently tend to present lower risks due to newer construction standards and materials, making them more attractive to insurers. Additionally, specifics such as roofing conditions, plumbing updates, and compliance with current building codes are critical as they can significantly affect coverage approval. Investors should proactively address these issues to avoid potential complications during claims.
The Importance of Building Codes Coverage
Building codes coverage is an essential consideration for property insurance, ensuring that if renovations or repairs are necessary, they meet current codes rather than older standards. Failure to secure this endorsement may result in significant out-of-pocket expenses during a claim, as insurance may only cover costs based on outdated regulations. In some instances, building code updates can lead to substantial differences in repair costs, emphasizing the need for investors to discuss this coverage explicitly with their insurance agents. This attention to detail can save homeowners thousands in unexpected repairs.
Navigating Claims and Liability
When renting out properties, landlords face specific insurance-related challenges, particularly concerning liability for tenant actions and property damages. Carrying adequate liability coverage is critical, as it protects against potential claims stemming from incidents, such as structural failures or tenant injuries. Furthermore, having loss of rental income coverage ensures that landlords can recover financially during periods of property damage requiring repairs. It's essential for property owners to assess their coverage levels and explore endorsements that protect against tenant misconduct to safeguard their investments.
Grant Johnson joins the podcast to share his valuable insights into the world of insurance and real estate. As the founder and principal agent at Varde Insurance Group, his passion for being a valuable insurance resource for his clients and partners revolves around one central purpose: to reach the most so he can help the most…
Grant is a connector of people, resources, ideas, and solutions. Drawing from his undergrad education in psychology and master’s in counseling, he started Varde Insurance Group as a way to provide home, auto, life, and commercial insurance to clients at the best rates available.
In this conversation, we dive into:
What to look for when choosing insurance for investment properties.
How insurance has changed over the past two years, and why policies are becoming more restrictive.
The difference between low and high-risk insurance policies.
The ways that the pandemic impacted inflation.
Factors to consider when you have renters in a property that you own.
How does Grant add value to his clients, partners, and community? What are the benefits of taking a friendly consultative approach to insurance coverage? Click play now to see for yourself!
To learn more about Grant and Varde Insurance Group, click here now.