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Insurance Coverage Forms

Insurance coverage isn’t always the same. Understanding what is covered under your insurance coverage form is important. Sometimes you will hear agents throw out the terms basic, Broad, or Special in regards to the coverage. These are called coverage forms, and they basically indicate what the policy will cover you for. Other times they will use terms like DP1 which typically has basic coverage. Or DP3 with has special coverage. Below is what these usually mean, and what is covered under each form (a little leagalese here check your policy, these are general explanations carriers can include and exclude coverage, so its best to check your policy).

Again, these are general and a company has the right to exclude things like Vandalism and Malicious Mischief from a given policy (like a vacant home policy), or if something changes in the home coverage can change. For example, if you run a business out of the home or rent part of it out things can change so tell your insurance agent because these things can change coverage, but generally, this is what is included in each form. So which is right for you? If you ask your insurance agent they will typically tell you are special and deserve that coverage, I would tend to agree. Special is the best is so many ways, and don’t you deserve the best? With the Special form you are covered for it unless it is excluded, and there are lots of things that can be excluded. These include flood, earthquake, and landslide. These can be purchased separately, and we suggest that if you live in an at risk area that you do so to insure you get the coverage you need.

Again, this is a general explanation of insurance coverage forms. Please check your policy for specifics, and your policy will have different terms and conditions, definitions, and can change coverage. Carriers can include and exclude coverage, so its best to check your policy.

Why Real Estate Investors Should Choose Gila Insurance Group

As you build your investment team, everyone knows about getting a lender, a real estate agent, a property manager, etc. But far too many people forget about adding an insurance broker to their team. Yet getting the right insurance broker on your team is important, the loan officer will require an insurance policy, and there is no need to hold up the process for insurance.

Having an insurance broker who knows your business can ensure that you have the right coverage to protect your assets, and can communicate important information to the insurance company. For example, if you have a buy and hold strategy, your exposure to liability can increase dramatically as you add new properties. The more assets you hold the more you have to lose. Ensuring you have an umbrella policy with sufficient limits is important in protecting those assets.

Or, if you have a fix and flip business, working with a broker that understands that you may have some building materials around the house, as you rehab it, can make a difference. Because your policy can be cancelled if that kind of information isn’t communicated to the insurance company. Team members that know your business make a difference. Plus there are a few other things that set us apart.

  1. We represent multiple companies. Who cares?! You should, because multiple companies helps you get the coverage you need. Not every company has great rates. You have probably noticed that insurance prices go up, which sends you off to find another company. But why should you have to find a new insurance team member? We represent multiple companies so that we can get you a policy that fits your needs and ensures you get the right coverage at a price that won’t kill your profit.
  2. We have unique products. What products?
    1. 10+ – if you have more than 10 investments we can simplify your life significantly AND save you tons of money.
    2. Flood -How is flood unique? Well, our program is underwritten by Lloyds of London, NOT the US Government. That means better coverage, more flexibility, and NO ELEVATION REPORTS.
    3. Umbrella Coverage – Chances are if you are sued a standard policy doesn’t provide sufficient liability coverage. Umbrella coverage not only provides that coverage, but will also fill in some gaps that your standard policy does not cover.
  3. We are committed to you, the investor. We got into this market because we love real estate. However, we are also insurance nerds. Ours was a match made in heaven. But beyond that, we strongly feel that if you are investing properly you need an insurance person on your team–someone who understands your needs, and who specializes in covering your investments. Its true, if you want us to insure your home, auto, and sell you a life insurance policy, that’s not us. Truth is, if you are doing this right, you need to hold your properties in LLCs completely detached from your personal assets, and you should be insuring your investments with someone who understands them.

For more information, contact Gila Insurance. Our agents can provide you a quote or review your current policy.