The Right Insurance Agent: A Lifesaver for Real Estate Investors

The Right Insurance Agent: A Lifesaver for Real Estate Investors

Insurance—it’s something most investors don’t like to think about, but you can’t afford to ignore it. Too often, people look at insurance as just another expense. They focus solely on finding the lowest premium, and then assume they’ve done their due diligence. But let me share a story with you that might change your perspective. This isn’t just about picking the cheapest policy—it’s about choosing the right insurance agent. Because, in my experience, the right agent can be the difference between staying afloat or sinking under the weight of unexpected disasters.

I’m a real estate investor with over 30 properties. You’d think with a portfolio like that, I’d have my insurance game locked down. Well, turns out I’m human too, and I got caught in a situation that could’ve become a viral disaster for my investments. Due to some oversight and an attempt to wait out the market for better rates, two of my insurance policies lapsed without me even realizing it. As luck would have it, I found myself staring down the barrel of storm season with two of my properties totally uninsured.

The Wake-Up Call: The Importance of the Right Agent

You can imagine the sheer panic when I received notifications from my bank. They were ready to place forced insurance on those properties if I didn’t get new coverage immediately. Forced insurance is not only more expensive, but it’s also generally less comprehensive, and it’s something I never wanted to deal with. I scrambled to find a solution. That’s when I remembered Colleen Pacheco from Secured Insurance Group, LLC.

I called Colleen late on a Sunday evening, fully expecting to leave a voicemail and hear back sometime the next day. To my surprise, she picked up! And here’s the kicker—Colleen was not only available, but she went above and beyond to help me get new insurance policies in place for those properties within just a few days—literally before the landfall of a major storm. She even set everything up without me having to pay immediately, giving me time after the storm to finalize payments.

Why a Good Insurance Agent is Worth Their Weight in Gold

If I hadn’t gotten coverage on those properties, a single incident could’ve triggered a domino effect that would have put my entire investment portfolio at risk. Think about it: with multiple mortgages and properties, the loss of one home due to lack of coverage could have started a chain reaction—missed mortgage payments, defaulting on loans, and ultimately, my investment empire could have crumbled. For a real estate investor, there’s nothing scarier than seeing years of hard work go up in smoke (or water, in this case) due to something as seemingly trivial as a lapsed insurance policy.

This experience was a huge reminder for me—and hopefully for you as well—that the value of an insurance agent goes far beyond just selling you a policy. A good agent will monitor your coverage, remind you of renewals, and ensure that you’re never caught in a vulnerable position.

Calculating the True Cost of Insurance for Investors

To give you some perspective, let’s do some math. Over the years, I’ve spent an estimated $1.8 million on insurance (30 properties x $3-5k/year x 20 years). That’s right, nearly two million dollars. You might be wondering if it’s all worth it. After all, in 22 years of investing, I’ve filed maybe three claims, totaling around $100,000. So, purely looking at costs vs. claims, you might think I’ve been overpaying by a mile. Why spend millions if the payout is so small?

But here’s the paradox—insurance isn’t just about the immediate payout. It’s about peace of mind and the ability to protect your assets against catastrophic events. Those three claims were for things that would have cost me far more than the premiums had I not been insured. Additionally, there’s the ripple effect. One uninsured property loss could lead to loan defaults, forcing me to liquidate assets at a loss and potentially toppling my entire portfolio.

The Role of an Insurance Agent in Portfolio Management

Real estate investors like myself operate in a high-stakes environment. We have to juggle multiple properties, mortgages, maintenance, and tenant issues. It’s easy for things to slip through the cracks. That’s why having a competent insurance agent who understands your unique needs and takes a proactive role in managing your portfolio is crucial.

Colleen wasn’t just my insurance agent—she was a lifeline. When you have someone like that on your team, it’s not just about the policy itself. It’s about someone who understands the urgency of your situation, who can act fast, and who has the experience to offer solutions you didn’t even know were available. Colleen managed to bind new insurance policies within days, on a weekend, and right before a storm. That’s the kind of service you can’t put a price tag on.

Common Mistakes Investors Make with Insurance

1. Choosing Based on Price Alone: Many investors, myself included, sometimes focus too much on finding the lowest premium. It’s natural—you want to minimize expenses to maximize cash flow. But a lower premium often comes with higher deductibles, less coverage, and more exclusions.

2. Not Building a Relationship with the Agent: An insurance agent is not a one-time transaction. They should be a long-term partner. By building a strong relationship, your agent will be more attuned to your needs, and when situations arise—like mine with the storm—they’ll prioritize you.

3. Letting Policies Lapse: Whether it’s waiting for a better rate or just being too busy, allowing policies to lapse can be disastrous. It’s not just the risk of forced insurance or higher premiums later; it’s the potential for huge financial loss if an incident occurs during the lapse.

4. Failing to Regularly Review Coverage: Properties change, market values fluctuate, and your coverage needs will evolve over time. Regularly review your policies to ensure you’re not overpaying or under-insured.

Implementing a Process: A Lesson Learned

After this experience, I made it a point to tighten up my insurance management process. I now have a dedicated team member who works with Colleen to keep track of all our policy renewals, coverage updates, and potential lapses. We created a checklist and an SOP (Standard Operating Procedure) to follow, so nothing slips through the cracks again.

Here’s what our process looks like:

1. Monthly Insurance Review: We go through every policy to check upcoming renewals, compare premiums, and make sure we have sufficient coverage.

2. Renewal Alerts: We set reminders for 30, 15, and 5 days before a policy renewal. This ensures we’re never caught off guard, and we have time to shop around for better rates if needed.

3. Proactive Communication: My assistant and Colleen discuss any changes or potential lapses ahead of time. If a property needs to switch to a new policy, we ensure it meets all the requirements before making the change.

4. Claim Preparedness: We have a system in place to handle claims efficiently, from gathering evidence to documenting damages. This speeds up the process and reduces stress.

How to Choose the Right Insurance Agent

Not all insurance agents are created equal. Here’s what to look for:

1. Experience with Real Estate Investors: Real estate investors have unique needs that your average insurance agent might not fully understand. Look for someone with experience working with investment properties, multiple policies, and complex portfolios.

2. Responsiveness: As my story illustrates, emergencies don’t happen on a 9-to-5 schedule. You need an agent who will pick up the phone on a Sunday evening, if necessary.

3. Proactive Approach: The right agent will monitor your policies, alert you to potential issues, and offer solutions before you even know there’s a problem.

4. Strong Relationships with Multiple Carriers: An agent who has strong relationships with multiple insurance carriers can often find you better deals and more customized coverage options.

The Final Takeaway: Your Agent is Your First Line of Defense

This story is dedicated to Colleen Pacheco, NPN # 7042529, from Secured Insurance Group, LLC. If you’re looking for someone who’ll have your back in times of need, reach out to her. Here’s her contact info:

Colleen M. Pacheco, NPN # 7042529
Secured Insurance Group, LLC
1540 International Pkwy Ste 2000
Lake Mary, FL 32746
Phone: 407-559-2200
Fax: 407-268-0975
Email: Colleen@securedinsurancegrp.com
Website: www.securedinsurancegrp.com
Instagram: @colleeninsurancelady22
Facebook: Secured Insurance Group/ Colleen Pacheco
Podcast: Chats With Colleen (iTunes, Google Playstore, Amazon, Spotify)

Remember, your insurance agent isn’t just someone who sells you a policy. They’re your first line of defense in protecting your investment portfolio. Find an agent who’s more than just a salesperson—someone who truly cares, understands your needs, and will go the extra mile when it counts. It could make the difference between a smooth process and a viral disaster waiting

 

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