Using smaller insurance companies for landlords
Specialty insurance companies including some smaller insurance companies for landlords are better, as some larger insurance companies use modeling, statistics and templates to make property insurance a fit or don’t fit process. It doesn’t get looked at by an underwriter but passes certain questions on their website and gets accepted or rejected through this automated process.
That is why we love and use many, many smaller insurance companies in our agency. We actually talk to an underwriter, explain a certain situation and get insurance policies issued with exceptions. Those exceptions could be using a dog exclusion form (not covering dog bites), giving extra time to fix broken steps or covering the property while vacant (like on a new purchase).
So we love talking to these underwriters because they know we don’t send them junk properties to insure but want to also work with real estate investors. We don’t try to fit a square peg in a round hole but also want to give investors (especially new purchases) time to repair a property.
Using smaller insurance companies for landlords.
Smaller insurance companies can write lower valued properties, add in underground utility line coverage and give time (like the next years renewal date) to get a new roof, side a property or tear down a collapsing garage. Smaller insurance companies can accept or reject real properties based on an underwriters decision not a series of questions on a website.
Our insurance agency actually uses 8 smaller insurance companies because they use common sense and not modeling. They will also find that a good landlord, who they insure 3 or 4 properties for, will bring that newly bought one into better shape. They realize that the prior owner may have been a poor landlord but the new one is very good.
Having choices for our landlord clients is also why we use these insurance companies. They can help us find the right fit for an investors needs. It is also why we remain an independent insurance agency – the offer of choice.
Real Property Insurance in New York