Even for investors who have been managing properties for several years, keeping track of all the paperwork and details related to insurance can be a bit overwhelming.
Coordinating with banks, calling carriers to work out issues - dealing with day-to-day insurance needs and problems adds overhead and stress to an already complex business.
So why are you still doing it, when someone can take care of administering your insurance policies for you?
Offloading the workload
Policies from consumer-focused insurance companies are often offered at a low cost because the company is offloading much of the administrative effort onto the customer. If you only own a few properties, this may not be much of an issue, but as you scale up your investments, it becomes a bigger problem.
Five-Times The Work
Part of that headache stems from consumer policies being limited to one property per policy. So if you own five properties, you’ll be purchasing and managing five insurance policies. The work to keep track of renewals, updates, and other administrative tasks is quintupled.
Commercial policies allow for multiple properties per policy. That alone removes much of the insurance frustration that property investors face.
What might have been a part-time job managing all the different insurance policies for your properties can be simplified just by changing carriers.
While commercial policies do cost a little more than consumer policies, that cost difference is more than made up for in convenience.
Instead of you having to act as an intermediary between your insurance company and your bank, you can just call your agent and have them work with the bank directly. That and many of the other insurance issues you may have had to personally handle in the past can be offloaded onto your agent.
Bonuses with our Support
With that support, you’ll also get more analysis and advice about how much coverage you need. It could be that you’re buying too much, or too little. Your agent will be able to give you feedback on your policies for details you might not have had the time or expertise to delve into.
There’s a lot more flexibility too. If you have a property that’s going to be vacant for a few months, just call your agent. Instead of having to take out a completely separate policy for your vacant property, it’s just a temporary update to your existing commercial policy.
Commercial policies can help put you in a situation where you’re spending less of your time handling paperwork and can focus on your core business. Connect with an advisor at Thrive to figure out your next steps.
SEE ALSO: Changing The Perception Of Insurance