# # LLMS.txt – AI Crawling Guidelines for NREIG.com > This file provides AI crawlers with a list of publicly accessible URLs for training and indexing purposes. Content is subject to our terms of use. > Please respect our robots.txt and do not crawl private or restricted areas. Data is provided for non-commercial AI training only. --- ## Pages - [Log Cabin Insurance](https://nreig.com/products-overview/log-cabin-insurance/): https://nreig. com/wp-content/uploads/2025/10/shutterstock_2017824212-300x200. jpg CabinArmor—Log Cabin Insurance for Investors Renting out a log cabin comes with a unique set of risks,... - [Self-Defense & Legal Protection Through USCCA](https://nreig.com/products-overview/self-defense-insurance/): https://nreig. com/wp-content/uploads/2025/08/shutterstock_1174180636. jpg Self-Defense Education & Legal Protection Owning investment properties can sometimes place you in unpredictable or risky situations,... - [Arizona](https://nreig.com/insurance-by-state/arizona/) - [Arkansas](https://nreig.com/insurance-by-state/arkansas/) - [California](https://nreig.com/insurance-by-state/california/) - [Colorado](https://nreig.com/insurance-by-state/colorado/) - [Connecticut](https://nreig.com/insurance-by-state/connecticut/) - [Delaware](https://nreig.com/insurance-by-state/delaware/) - [Florida](https://nreig.com/insurance-by-state/florida/) - [Georgia](https://nreig.com/insurance-by-state/georgia/) - [Idaho](https://nreig.com/insurance-by-state/idaho/) - [Illinois](https://nreig.com/insurance-by-state/illinois/) - [Indiana](https://nreig.com/insurance-by-state/indiana/) - [Iowa](https://nreig.com/insurance-by-state/iowa/) - [Kansas](https://nreig.com/insurance-by-state/kansas/) - [Kentucky](https://nreig.com/insurance-by-state/kentucky/) - [Maine](https://nreig.com/insurance-by-state/maine/) - [Maryland](https://nreig.com/insurance-by-state/maryland/) - [Massachusetts](https://nreig.com/insurance-by-state/massachusetts/) - [Michigan](https://nreig.com/insurance-by-state/michigan/) - [Minnesota](https://nreig.com/insurance-by-state/minnesota/) - [Mississippi](https://nreig.com/insurance-by-state/mississippi/) - [Missouri](https://nreig.com/insurance-by-state/missouri/) - [Montana](https://nreig.com/insurance-by-state/montana/) - [Nebraska](https://nreig.com/insurance-by-state/nebraska/) - [Nevada](https://nreig.com/insurance-by-state/nevada/) - [New Hampshire](https://nreig.com/insurance-by-state/new-hampshire/) - [New Jersey](https://nreig.com/insurance-by-state/new-jersey/) - [New Mexico](https://nreig.com/insurance-by-state/new-mexico/) - [New York](https://nreig.com/insurance-by-state/new-york/) - [North Carolina](https://nreig.com/insurance-by-state/north-carolina/) - [North Dakota](https://nreig.com/insurance-by-state/north-dakota/) - [Ohio](https://nreig.com/insurance-by-state/ohio/) - [Oklahoma](https://nreig.com/insurance-by-state/oklahoma/) - [Oregon](https://nreig.com/insurance-by-state/oregon/) - [Pennsylvania](https://nreig.com/insurance-by-state/pennsylvania/) - [Rhode Island](https://nreig.com/insurance-by-state/rhode-island/) - [South Carolina](https://nreig.com/insurance-by-state/south-carolina/) - [South Dakota](https://nreig.com/insurance-by-state/south-dakota/) - [Tennessee](https://nreig.com/insurance-by-state/tennessee/) - [Texas](https://nreig.com/insurance-by-state/texas/) - [Utah](https://nreig.com/insurance-by-state/utah/) - [Vermont](https://nreig.com/insurance-by-state/vermont/) - [Virginia](https://nreig.com/insurance-by-state/virginia/) - [Washington](https://nreig.com/insurance-by-state/washington/) - [West Virginia](https://nreig.com/insurance-by-state/west-virginia/) - [Wisconsin](https://nreig.com/insurance-by-state/wisconsin/) - [Wyoming](https://nreig.com/insurance-by-state/wyoming/) - [Alaska](https://nreig.com/insurance-by-state/alaska/) - [Alabama](https://nreig.com/insurance-by-state/alabama/) - [Program Participation Agreement Changes 6/27/2025](https://nreig.com/program-participation-agreement-changes-6-2025/): The NREIG Program Participation Agreement is signed by program insureds when an account is set up, and outlines the Terms... - [Insurance by State](https://nreig.com/insurance-by-state/): Find Rental Property Insurance by State Protect your real estate - [Program Participation Agreement Changes 11/2024](https://nreig.com/program-participation-agreement-changes-11-2024/): The NREIG Program Participation Agreement is signed by program insureds when an account is set up, and outlines the Terms... - [StorageGuard Inquiry Form](https://nreig.com/storageguard-inquiry-form/): Online Form – NREIG StorageGuard ContactPowered by Formstack If the - [SMS/Text Messaging Terms & Conditions](https://nreig.com/sms-text-messaging-terms-conditions/): Last updated: 6/5/24 Please read these SMS/Text Messaging Terms & - [Glossary](https://nreig.com/glossary/): A B C D E F G H I J - [Earthquakes & Sinkholes](https://nreig.com/resources/weather-events/earthquakes-and-sinkholes/) - [Floods](https://nreig.com/resources/weather-events/floods/) - [Hurricanes & Storm Surges](https://nreig.com/resources/weather-events/hurricanes-and-storm-surges/) - [Tornadoes & Thunderstorms](https://nreig.com/resources/weather-events/tornadoes-and-thunderstorms/) - [Wildfires](https://nreig.com/resources/weather-events/wildfires/) - [Winter Storms](https://nreig.com/resources/weather-events/winter-storms/) - [Investing Tips](https://nreig.com/resources/investing-tips/) - [Seasonal Tips](https://nreig.com/resources/seasonal-tips/) - [Weather Events](https://nreig.com/resources/weather-events/) - [Checklists](https://nreig.com/resources/checklists/) - [Summer](https://nreig.com/resources/seasonal-tips/summer/) - [Winter](https://nreig.com/resources/seasonal-tips/winter/) - [Fall](https://nreig.com/resources/seasonal-tips/fall/) - [Program Participation Agreement Changes 8/2023](https://nreig.com/program-participation-agreement-changes-7-2023/): The NREIG Program Participation Agreement is signed by program insureds when an account is set up, and outlines the Terms... - [AMP Proposal Request](https://nreig.com/amp-proposal-request/): Online Form – NREIG Main Proposal Request - [Tenant Protector Plan®](https://nreig.com/products-overview/tenant-protector-plan/): https://nreig. com/wp-content/uploads/2019/11/cookingfire_shutterstock_792862648-web-1-300x200. jpeg Tenant Protector Plan® Coverage for Landlords The Tenant Protector Plan® provides landlords with added protection against tenant-caused... - [Spring](https://nreig.com/resources/seasonal-tips/spring/) - [California Consumer Privacy Act Notice](https://nreig.com/california-consumer-privacy-act-notice/): Last revised: Sept 9, 2022 California Consumer Privacy Act Notice This Privacy Notice for California Residents supplements the information contained... - [Service Line Insurance](https://nreig.com/products-overview/service-line-insurance/): yes - [Program](https://nreig.com/products-overview/program/): Insurance Program for Real Estate Investment Properties Regardless of your portfolio size or ownership entities, simplify your insurance experience with... - [Property Management Errors and Omissions Coverage](https://nreig.com/products-overview/pm-errors-and-omissions-coverage/): https://nreig. com/wp-content/uploads/2021/02/propertymanager-tools_shutterstock_49910716-_web. jpeg Errors & Omissions coverage for self-managed investment properties If you are a real estate investor who self-manages... - [Products Overview](https://nreig.com/products-overview/): Insurance products for real estate investors NREIG aims to be the one stop shop for real estate investors’ insurance needs.... - [Canine Liability Coverage](https://nreig.com/products-overview/canine-liability-coverage/): K9Guard coverage for tenants If you are a real estate investor with tenant-occupied properties, you may be at risk of... - [Retail Agent Program](https://nreig.com/retail-agent-program-2/): Our Retail Agent Program Licensed, independent agents can gain access to the largest Insurance Program for their real estate investor... - [Equipment Breakdown Insurance](https://nreig.com/products-overview/equipment-breakdown-coverage/): https://nreig. com/wp-content/uploads/2020/08/heatingsystem-equipment_shutterstock_221665444-web. jpeg Equipment Breakdown coverage for investment properties Our Equipment Breakdown insurance covers the physical and financial damage that... - [Tenant Protector Plan Proposal Request](https://nreig.com/tpp-proposal-request/): Online Form – TPP Proposal Request - [Non-Performing Notes Insurance](https://nreig.com/products-overview/non-performing-notes-insurance/): https://nreig. com/wp-content/uploads/2020/08/LoanAgreement_shutterstock_1084715807_web. jpeg Non-Performing Notes coverage protects your investment Our Non-Performing Note coverage protects your interest while the terms of... - [A.M. Best Rating](https://nreig.com/am-best/): What does an A. M. Best rating mean? All of the insurers with which we work have an “A” or... - [Proposal Request](https://nreig.com/proposal-request/): Online Form – NREIG Main Proposal Request - [Terrorism Insurance](https://nreig.com/products-overview/terrorism-insurance/): yes - [Ordinance or Law Coverage](https://nreig.com/products-overview/ordinance-or-law-coverage/): yes - [Rental Property Insurance](https://nreig.com/products-overview/rental-property-insurance/): https://nreig. com/wp-content/uploads/2019/09/TPP-300x197. jpg Rental Property Insurance for landlords When renting out an investment property, it is important to carry insurance... - [About Us](https://nreig.com/about-us/): https://nreig. com/wp-content/uploads/2020/05/Happy-people-300x194. png About National Real Estate Insurance Group Since 2008, National Real Estate Insurance Group (NREIG) has been providing... - [Flood Insurance](https://nreig.com/products-overview/flood-insurance/): https://nreig. com/wp-content/uploads/2019/04/SevereWeather-udpate-400x262-300x197. jpg Flood Insurance for investment properties Flood Insurance might be an important consideration depending on the location of... - [Liability Insurance](https://nreig.com/products-overview/liability-insurance/): https://nreig. com/wp-content/uploads/2017/05/ChoosingTheRightInsurance-400x262-300x197. jpg Liability insurance for investment properties Liability insurance can protect your investment from third party claims that occur... - [Vacant Land Liability Insurance](https://nreig.com/products-overview/vacant-land-liability-insurance/): https://nreig. com/wp-content/uploads/2020/06/Vacant-Land-Small-300x209. jpg Vacant land liability insurance coverage you need If you own vacant land, incidents that occur on the... - [Condo Insurance](https://nreig.com/products-overview/condo-insurance/): https://nreig. com/wp-content/uploads/2020/06/Condo-Small-300x201. jpg Condo Insurance for investment properties Whether you rent your condo out to tenants or are renovating it,... - [Lender-Placed Insurance](https://nreig.com/products-overview/lender-placed-insurance/): https://nreig. com/wp-content/uploads/2020/08/LoanAgreement_shutterstock_1084715807_web-300x200. jpeg Lender-Placed Insurance to protect your interests Our Lender-Placed Insurance alternative coverage protects the interest of a lender... - [Mobile Home Insurance](https://nreig.com/products-overview/mobile-home-insurance/): https://nreig. com/wp-content/uploads/2020/06/Mobile-Home-Small-300x199. jpg Mobile home insurance for real estate investors Mobile home insurance is a must-have when you rent out... - [Earth Movement Coverage](https://nreig.com/products-overview/earth-movement/): https://nreig. com/wp-content/uploads/2019/07/Earthquake_shutterstock_755814205_web-400x262-300x197. jpeg Earth Movement coverage for investment properties An Earth Movement supplemental policy provides additional protection for sinkhole and... - [Vacation Rental Insurance](https://nreig.com/products-overview/vacation-rental-insurance/): https://nreig. com/wp-content/uploads/2019/09/VacationRental_shutterstock_1112165012-web-300x199. jpeg Vacation Rental Insurance for short-term rentals Vacation Rental insurance is needed when renting out your property on... - [Vacant Property Insurance](https://nreig.com/products-overview/vacant-property-insurance/): https://nreig. com/wp-content/uploads/2019/09/Vacant-boarded_shutterstock_1131849035-1024x683-300x200. jpg Vacant Property Insurance coverage you need Vacant property insurance is a must-have when you have a property... - [Renovation Property Insurance](https://nreig.com/products-overview/renovation-property-insurance/): https://nreig. com/wp-content/uploads/2017/06/Reporting-Form-400x262. jpg Renovation property insurance for investors Renovation property insurance is a must-have when doing major renovations to your... - [New Construction Insurance](https://nreig.com/products-overview/new-construction-insurance/): https://nreig. com/wp-content/uploads/2019/04/Construction_shutterstock_763498480-reduced-400x262-300x197. jpeg New construction insurance for investors When building a new construction property, it is important that you, the... - [Claims Process](https://nreig.com/claims-process/): Our Commitment Experiencing damage to one of your properties can be extremely frustrating and overwhelming. That's why National Real Estate... - [Home](https://nreig.com/): Insurance Built for Real Estate Investors. A program that molds - [Coverage Options](https://nreig.com/resources/coverage-options/): yes - [Fire](https://nreig.com/resources/fire/) - [Insurance Education](https://nreig.com/resources/insurance-education/) - [NREIG News](https://nreig.com/resources/nreig-news/) - [Safety & Maintenance](https://nreig.com/resources/safety-maintenance/) - [Seasonal & Weather Tips](https://nreig.com/resources/seasonal-weather-tips/) - [Tenant Relations](https://nreig.com/resources/tenant-relations/) - [Water](https://nreig.com/resources/water/) - [Is It Covered?](https://nreig.com/resources/insurance-education/is-it-covered/) - [Contact Us](https://nreig.com/contact-us/): Get in touch with us, we're happy to help If you have questions or concerns, please submit this form and... - [Privacy Policy](https://nreig.com/privacy-policy/): Last updated: 7/7/2025 Privacy Policy BY ACCESSING AND/OR USING OUR - [Careers](https://nreig.com/careers/): https://nreig. com/wp-content/uploads/2024/06/Atrium-1-1024x683. jpg Client-Driven Insurance Leader At National Real Estate Insurance Group, we understand there is no such thing as... - [FAQ](https://nreig.com/faq/): Frequently asked questions about National Real Estate Insurance Group NREIG is an independent insurance agency, licensed in all 50 states.... - [Resources](https://nreig.com/resources/) - [Our Team](https://nreig.com/team/): NREIG is more to our clients than policies and contracts. The NREIG team is dedicated to being an ally and... - [Testimonials](https://nreig.com/testimonials/): See what our clients are saying about us “Insurance is often one of the more head-scratching pieces of the lending... --- ## Posts - [New Year, Smarter Rentals: Safety, Leases, and Landlord Processes to Review Now](https://nreig.com/new-year-smarter-rentals-safety-leases-and-landlord-processes-to-review-now/): Summary January is a good time for landlords to reassess how their - [How to Winterize a Vacant Investment Property](https://nreig.com/shielding-your-investment-property-from-winter-risks-pt-2/): Winter has made its presence known, but there is still - [What is an Insurance Moratorium?](https://nreig.com/what-is-an-insurance-moratorium/): When severe weather, hurricanes, wildfires, or other natural disasters are - [Insurance Providers Explained: What Every Real Estate Investor Should Know](https://nreig.com/insurance-providers-explained-what-every-real-estate-investor-should-know/): Not all insurance providers are created equally. Whether you’re insuring your first - [Water Losses Explained: Flood, Water Damage, and Sewer Backup](https://nreig.com/water-losses-explained-flood-water-damage-and-sewer-backup/): Not all water losses are the same, and your insurance - [Landlord Checklist: Leasing Your First Rental Property](https://nreig.com/landlord-checklist-leasing-your-first-rental-property/): Leasing your first rental property can feel overwhelming, but the right - [Unique Insurance Challenges for Log Cabin Rentals](https://nreig.com/unique-insurance-challenges-for-log-cabin-rentals/): Summary Log cabins are insurable, but their natural materials, remote - [How to Winterize an Occupied Investment Property](https://nreig.com/winter-risks-part-1/): While some regions of the United States have already received - [Semiannual Insurance Policy Review Checklist](https://nreig.com/semiannual-insurance-policy-review-checklist/): It’s best practice to review your insurance documents for accuracy - [Premises vs Personal Liability Insurance: A Guide for Real Estate Investors](https://nreig.com/premises-vs-personal-liability-insurance-a-guide-for-real-estate-investors/): Summary Personal liability insurance won’t cover your risk as a - [Holiday Safety Tips for Landlords](https://nreig.com/10-tips-to-eliminate-holiday-liabilities/): The holiday season can increase risks for landlords, especially when - [Insuring Log Cabins with National Real Estate Insurance Group ](https://nreig.com/insuring-log-cabins-with-national-real-estate-insurance-group/): In our Program, log cabins are defined as homes built - [Fix-and-Flip vs. Buy-and-Hold: Which Real Estate Investment Strategy is Right for Me? ](https://nreig.com/fix-and-flip-vs-buy-and-hold-which-real-estate-investment-strategy-is-right-for-me/): There’s no single path to success in real estate, and - [Life-Saving Tools and Methods to Protect Your Tenants from a Fire](https://nreig.com/life-saving-tools-and-methods-to-protect-your-tenants-from-a-fire/): Aside from regular inspections, smoke alarms, fire suppression tools, and - [Property Insurance Moratoriums: Key Information for Real Estate Investors](https://nreig.com/property-insurance-moratoriums-key-information-for-real-estate-investors/): When severe weather or a natural disaster is forecasted, insurance - [NREIG Stands Out as the Leading Provider of Real Estate Investment Insurance](https://nreig.com/nreig-stands-out-as-the-leading-provider-of-real-estate-investment-insurance/): It’s not uncommon for investors to shop for insurance based - [Standard Exclusions on Investment Property Policies](https://nreig.com/standard-exclusions-on-investment-property-policies/): Exclusions play a significant role in defining the boundaries of - [Umbrella & Excess Liability for Investment Properties](https://nreig.com/umbrella-excess-liability-for-investment-properties/): Umbrella and Excess policies both extend the limits of a - [Limits & Sublimits on Property Insurance Policies](https://nreig.com/limits-sublimits-on-property-insurance-policies/): Limits and sublimits set caps on how much your carrier - [Understanding Coinsurance Penalties](https://nreig.com/understanding-coinsurance-penalties/): Underinsuring your property, even if accidental, could greatly decrease claim - [Actual Cash Value vs Replacement Cost: Choosing Loss Settlement Methods](https://nreig.com/actual-cash-value-vs-replacement-cost-choosing-loss-settlement-methods/): When a loss occurs at one of your investment properties, - [What's the Difference Between Flood, Water Damage & Sewer Back-up Coverage?](https://nreig.com/know-difference-flood-water-damage-sewer-back-2/): Understanding the insurance differences between Flood, Water Damage, and Sewer - [Explaining Basic vs Special Form Coverages](https://nreig.com/explaining-basic-vs-special-form-coverages/): Protecting your investment properties begins with understanding available coverage forms - [The Ultimate Tax Reduction Guide for Real Estate Investors](https://nreig.com/the-ultimate-tax-reduction-guide-for-real-estate-investors/): Owning rental properties can be a profitable investment, but without - [What is Premises Liability?](https://nreig.com/what-is-premises-liability/): As a real estate investor, it is your duty to - [What is Property Insurance?](https://nreig.com/what-is-property-insurance/): Although property insurance and homeowners policies share similarities, the insurance - [What is National Real Estate Insurance Group? ](https://nreig.com/what-is-national-real-estate-insurance-group/): As a real estate investor, you devote time and money - [The Impact of Market Value & Rebuild Value on Investment Property Insurance](https://nreig.com/the-impact-of-market-value-rebuild-value-on-investment-property-insurance/): When insuring an investment property, one of the biggest misconceptions - [2024: A Year of Extreme Weather Across the U.S.](https://nreig.com/2024-a-year-of-extreme-weather-across-the-u-s/): The year 2024 brought an array of weather extremes across - [Strategies to Reduce Your Insurance Premium ](https://nreig.com/strategies-to-reduce-your-insurance-premium/): In today’s episode, we are diving into a topic that - [Understanding Insurance Carrier Ratings: AM Best, DemoTech, and Unrated ](https://nreig.com/understanding-insurance-carrier-ratings-am-best-demotech-and-unrated/): When looking for insurance, it’s easy to focus on coverage details, exclusions, - [Five Signs Your Tree is in Trouble](https://nreig.com/five-signs-your-tree-is-in-trouble/): It’s easy to take tree health for granted. We assume - [Understanding Liability Coverages for Investors](https://nreig.com/understanding-liability-coverages-for-investors/): Welcome to today’s episode where we’re diving into a crucial, - [Why Maintaining a Relationship with Your Insurance Agent is Vital](https://nreig.com/why-maintaining-a-relationship-with-your-insurance-agent-is-vital/): Similar to other real estate investing relationships like lenders, contractors, - [Additional Insured and Loss Payee Roles in Insurance](https://nreig.com/additional-insured-and-loss-payee-roles-in-insurance/): The designations of Additional Insured (AI), Loss Payee, and Lender’s - [Umbrella & Excess Liability Policies: What Investors Need to Know](https://nreig.com/umbrella-excess-liability-policies-what-investors-need-to-know/): Umbrellas are one of the most misunderstood insurance policies. Investors - [Mastering Coinsurance & Avoiding Costly Penalties ](https://nreig.com/mastering-coinsurance-avoiding-costly-penalties/): Adequately protecting your investment properties requires more than just purchasing - [Landlord Insurance Offers Better Protection for Investors Than Homeowners Insurance](https://nreig.com/landlord-insurance-offers-better-protection-for-investors-than-homeowners-insurance/): Homeowners insurance and landlord insurance are two distinctly different products, - [Everything Investors Should Know About Insurance Claims](https://nreig.com/everything-investors-should-know-about-insurance-claims/): Real estate investors typically experience a property loss at least - [Insuring Mobile/Manufactured Homes With NREIG](https://nreig.com/insuring-mobile-manufactured-homes-with-nreig/): In our Program, mobile homes are defined as homes that - [Insuring Pools and Other Attractive Nuisances](https://nreig.com/insuring-pools-and-other-attractive-nuisances/): Pools, playgrounds, trampolines, and other outdoor equipment are great amenities - [How to Insure Coastal Properties](https://nreig.com/how-to-insure-coastal-properties/): Tropical storms and hurricanes can cause severe damage to properties - [Covering Your Liability Risks with NREIG ](https://nreig.com/covering-your-liability-risks-with-nreig/): While insuring the physical structure of a property is crucial, - [Why You Shouldn’t Insure Investment Properties Under Homeowners Policies](https://nreig.com/why-you-shouldnt-insure-investment-properties-under-homeowners-policies/): Insurance is a vital component for any business. And having - [How to Insure Vacation Rentals](https://nreig.com/how-to-insure-vacation-rentals/): Vacation rentals are a great way for investors to earn - [NREIG's Tenant Protector Plan®–A Renters Insurance Alternative for Landlords](https://nreig.com/what-you-need-to-know-about-our-new-tenant-protector-plan/): Do you require your tenants to carry renters insurance in - [NREIG Offers Insurance Solutions for Every Type of Investment Property](https://nreig.com/nreig-offers-insurance-solutions-for-every-type-of-investment-property/): Protecting your investments with the right insurance coverage is crucial. - [Understanding Total Insured Value and Insured To Value in REI Insurance ](https://nreig.com/understanding-total-insured-value-and-insured-to-value-in-rei-insurance/): As a real estate investor, it’s important to understand the - [Understanding Property Insurance Policies](https://nreig.com/understanding-property-insurance-policies/): It’s no secret that insurance policies are complex. And it - [The Difference Between Insurance Agencies, Brokers, and Companies ](https://nreig.com/the-difference-between-insurance-agencies-brokers-and-companies/): It’s common for someone outside of the insurance industry not - [Understanding Your Insurance Policy](https://nreig.com/understanding-your-insurance-policy/): An insurance policy is more than just a piece of - [How to Insure Fix-and-Flips & Renovation Properties](https://nreig.com/how-to-insure-fix-and-flips-renovation-properties/): When doing major renovations at your property, renovation insurance is - [How Economic Conditions and Natural Disasters Affect the Insurance Market](https://nreig.com/how-economic-conditions-and-natural-disasters-affect-the-insurance-market/): Climbing insurance rates are being felt by homeowners and real - [The Difference Between Flood, Water Damage, and Sewer Backup ](https://nreig.com/the-difference-between-flood-water-damage-and-sewer-backup/): You may be surprised to learn that your definition of - [The Importance of Maintaining Accurate Account Information](https://nreig.com/the-importance-of-maintaining-accurate-account-information/): The importance of accurate account information cannot be overstated, as - [Basic, Broad, and Special Form Coverages: What's the Difference](https://nreig.com/basic-broad-and-special-form-coverages-whats-the-difference/): When structuring your insurance policy, the coverage form selected plays - [Actual Cash Value vs Replacement Cost](https://nreig.com/actual-cash-value-vs-replacement-cost/): Welcome to our first episode of Insured Investors. Today, we - [How to Insure Unique Real Estate Investment Strategies](https://nreig.com/how-to-insure-unique-real-estate-investment-strategies/): When most people hear about real estate investing, they think - [NREIG vs Carrier Responsibilities](https://nreig.com/nreig-vs-carrier-responsibilities/): NREIG is unlike any other insurance agency, and because of - [Basic, Broad, or Special- Which Insurance Coverage Form is Right for Me?](https://nreig.com/choosing-between-basic-and-special-form-coverages/): If you’ve shopped for property insurance before, you may have - [NREIG Billing Frequently Asked Questions ](https://nreig.com/nreig-billing-frequently-asked-questions/): What payment types do you accept and how can I - [Year in Review- 2023's Insurance Losses & Market Shifts ](https://nreig.com/year-in-review-2023s-insurance-losses-market-shifts/): As we say goodbye to 2023, property owners across the - [What is an Insurance Program?](https://nreig.com/what-is-an-insurance-program/): At National Real Estate Insurance Group, we understand there is - [Condition of Rental Property Checklist](https://nreig.com/condition-of-rental-property-checklist/): Keeping a profitable and well-maintained rental property begins with a - [Rental Property Hazard Recognition Checklist](https://nreig.com/rental-property-hazard-recognition-checklist/): As a landlord and property owner, ensuring the safety and - [Cleaning and Decluttering Checklist](https://nreig.com/cleaning-and-decluttering-checklist/): Who doesn’t love a clean and well-kept home? For investors, - [Smoke Detector Maintenance and Recommendations](https://nreig.com/nreigs-smoke-detector-recommendations/): Fires are one of the most sudden, destructive, and deadly - [Wildfire Avoidance Checklist](https://nreig.com/wildfire-avoidance-checklist/): This Wildfire Avoidance Checklist is designed to help you develop - [How to Insure Your Renovation Property](https://nreig.com/how-to-insure-your-renovation-property/): Whether you’re new to property flipping or a seasoned veteran, renovating a home comes with a unique set of risks,... - [Fire Prevention Tips for Real Estate Investors & Tenants](https://nreig.com/gearing-up-for-fire-prevention/): Are you and your tenants prepared to deal with a - [What Every Real Estate Investor Should Know About Insurance Claims](https://nreig.com/what-every-real-estate-investor-should-know-about-insurance-claims/): Originally published in REI Ink Magazine. Experiencing a loss at - [Hurricane Preparation Checklist for Tenants](https://nreig.com/hurricane-preparation-checklist-for-tenants/): The best time to prepare is before hurricane season begins. - [Hurricane Preparation Checklist for Investors](https://nreig.com/hurricane-preparation-checklist-for-investors/): Natural disasters don’t wait on humans to be ready to - [Mitigation Tips for the Most Common Property Losses](https://nreig.com/mitigation-tips-for-the-most-common-property-losses/): At NREIG, we see numerous property claim submissions each day. And while some losses like hail damage are unavoidable, many... - [Hurricane Recovery Tips & Resources](https://nreig.com/hurricane-recovery-tips-resources/): You may have spent considerable time and effort preparing for - [Ordinance or Law Coverage for Investment Properties  ](https://nreig.com/ordinance-or-law-coverage-for-investment-properties/): It is common for state, city, and local municipality building - [What to Look for on a Tenant's Background Check](https://nreig.com/what-to-look-for-on-a-tenants-background-check/): While the ability to make rent is important, you don’t - [Revamp Your Rental Without Renovating ](https://nreig.com/revamp-your-rental-without-renovating/): Maintaining a visually appealing and up-to-date rental property is essential - [Is Tenant Damage Covered Under Your Insurance Policy?](https://nreig.com/is-tenant-damage-covered-under-your-insurance-policy/): Many assume that under a landlord insurance policy, ANY kind - [Protect Your Investments from the Damaging Effects of Earth Movement](https://nreig.com/protect-your-investments-from-the-damaging-effects-of-earth-movement/): According to the U. S. Geological Survey (USGS), all 50 states - [Pools, Decks & Trampolines - Are These Amenities Worth It?](https://nreig.com/pools-decks-trampolines-are-these-amenities-worth-it/): To attract the best tenants and beat out the competition, - [Tenant Move-out Process and Checklist](https://nreig.com/the-perfect-tenant-check-out/): So your tenant needs to move. They have gotten a - [Named Storm Coverage for Investment Properties ](https://nreig.com/named-storm-coverage-for-investment-properties/): By policy definition, a named storm is defined as any - [Investors Need to be Pro-Active Entering 2023](https://nreig.com/investors-need-to-be-pro-active-entering-2023/): Originally published in REI Ink Magazine. If I could - [Micro Flipping: What is it & What Type(s) of Insurance Does it Require?](https://nreig.com/micro-flipping-what-is-it-what-types-of-insurance-does-it-require/): If you closely follow real estate investment trends, you may - [Evaluating Your Flood Insurance Options](https://nreig.com/evaluating-your-flood-insurance-options/): It is important that property owners understand their risk exposure - [Service Line Coverage for Investment Properties](https://nreig.com/service-line-coverage-for-investment-properties/): Did you know that damage to external service lines is - [Preparing Your Property for Severe Spring Weather](https://nreig.com/preparing-your-property-for-severe-spring-weather/): It may feel a little early to be talking about - [5 Key REI Relationships to Avoid Heartache](https://nreig.com/5-key-rei-relationships-to-avoid-heartache/): Real Estate Investing (REI) is by nature, a profession dependent - [Information About Burst Pipes at Your Properties](https://nreig.com/information-about-burst-pipes-at-your-properties/): Even if you own properties in states not as prone - [2022 Insured Loss Events in Review](https://nreig.com/2022-insured-loss-events-in-review/): It has been another chaotic year for the property insurance - [Equipment Breakdown Coverage for Investment Properties](https://nreig.com/equipment-breakdown-coverage-for-investment-properties/): Out-of-pocket repair costs for damage caused by common home appliances, - [Is It Covered? Burst Pipes](https://nreig.com/is-it-covered-burst-pipes/): It’s a common misconception that water damage from a burst - [Is It Covered? Garages, Fences & Other Structures](https://nreig.com/is-it-covered-garages-fences-other-structures/): Some assume coverage for garages, fences, and other outdoor structures - [Choosing the Best Settlement Method: Replacement Cost vs Actual Cash Value](https://nreig.com/replacement-cost-vs-actual-cash-value/): When it comes to settlement methods, you have two options - [Even Healthy Trees Need Maintenance](https://nreig.com/even-healthy-trees-need-maintenance/): Well-kept trees can add value to your property, help save - [Is It Covered? Theft and Vandalism](https://nreig.com/is-it-covered-theft-vandalism/): Many people are unclear about the differences between acts of - [Is It Covered? Sewer Backup](https://nreig.com/is-it-covered-sewer-backup/): Many people think their property policy automatically includes Sewer Backup - [8 Ways to Reduce Your Property Insurance Costs](https://nreig.com/8-ways-reduce-property-insurance-costs/): We understand that when you spend less, you make more. - [Is It Covered? Aluminum Wires](https://nreig.com/is-it-covered-aluminum-wires/): Many people simply don’t know their policy may contain an - [Is It Covered? Snow, Ice & Sleet](https://nreig.com/not-covered-snow-ice-sleet/): Did you know that damage from the weight of snow, ice, or sleet is only covered under certain policy formats?... - [Is It Covered? Duties of the Insured](https://nreig.com/is-it-covered-your-responsibilities-as-an-insured/): It is a common misconception that insurance policies only include information regarding - [Protect Yourself From Post-Storm Scammers](https://nreig.com/protect-yourself-from-post-storm-scammers/): Our thoughts are with those recovering from the impact of - [Vacant Property Risks - Autumn](https://nreig.com/vacant-property-risks-fall/): Autumn is a signal to start wrapping up outdoor rehab work, a time to start “battening down the hatches” for... - [Is It Covered? Mold, Mildew & Fungus](https://nreig.com/is-it-covered-mold-mildew-fungus/): Insurance coverage for Mold, Mildew, and Fungus is usually either - [Avoiding Electrical Fires](https://nreig.com/avoiding-electrical-fires/): Aside from tornadoes, fires tend to be the most sudden, - [Insuring Creative Investment Strategies](https://nreig.com/insuring-creative-investment-strategies/): While rental, renovation, and new construction are the most common - [Is It Covered? Flood](https://nreig.com/is-it-covered-flood/): The question is always, “When is it a flood? ” Because - [Is It Covered? Liability for Non-Covered Items](https://nreig.com/is-it-covered-liability-for-non-covered-items/): For the most part, if an item is excluded from - [Preparing Investment Properties for Wildfire, Hurricane and Tornado Season](https://nreig.com/wildfires-hurricanes-tornadoes-are-in-season-is-your-property-ready-too/): With the ability of catastrophic weather events to spring up - [Protecting Your Income With Loss of Rents Coverage](https://nreig.com/protecting-your-income-with-loss-of-rents-coverage/): How would your businesses and income be affected if your - [NREIG Terrorism Coverage vs TRIA](https://nreig.com/nreig-terrorism-coverage-vs-tria/): Prior to the September 11, 2001 attack on the World Trade Center towers and the Pentagon, Terrorism coverage was not... - [Is It Covered? Tenant Damage](https://nreig.com/is-it-covered-tenant-damage/): - [Is It Covered? Contractors' Injuries & Workmanship](https://nreig.com/is-it-covered-contractors-injuries-workmanship/): Though your insurance policy protects you from a variety of - [Is It Covered? Named Storm](https://nreig.com/is-it-covered-named-storms/): If you have properties in coastal locations, it’s not always - [Three Types of Coverage Triggered by Windstorms](https://nreig.com/three-types-of-coverage-triggered-by-windstorms/): As spring weather approaches, and with it, the chance for - [Is It Covered? Pools & Outdoor Equipment](https://nreig.com/is-it-covered-pools-outdoor-play-equipment/): Many assume that pools, trampolines, and other recreational outdoor equipment sitting in the yard are covered by insurance. Some also... - [Is It Covered? Dog & Animal Limitations](https://nreig.com/is-it-covered-dog-animal-limitations/): As an investor, your Property Coverage protects against damage that happens to your investment property itself (i. e. the physical... - [What to Do in a Power Outage - Landlord Edition](https://nreig.com/are-your-tenants-truly-prepared-for-a-power-outage/): It may require more than a flashlight for your tenants to make it through a power outage safely. Landlords, here's... - [How TPP and Renters Insurance Work Together](https://nreig.com/how-tpp-and-renters-insurance-work-together/): NREIG’s Tenant Protector Plan® (TPP) and Tenant Protector Plan x (TPPx) are truly distinctive offerings that helps investors in the... - [Is It Covered? Trees, Shrubs & Landscaping](https://nreig.com/is-it-covered-trees-shrubs-landscaping/): Coverage related to damage to, and caused by, trees and - [2021 Loss Events in Review](https://nreig.com/2021-loss-events-in-review/): The year 2021 continued to be an interesting year in - [Getting Smart About Your Canine Liability Exposure](https://nreig.com/getting-smart-about-your-canine-liability-exposure/): While it is rare for a landlord to be held - [How to Know You Need Coverage Beyond Premises Liability](https://nreig.com/how-to-know-you-need-coverage-beyond-premises-liability/): Premises liability is the legal principle that property owners have some level of accountability for accidents and injuries on their... - [Do you need Ordinance or Law coverage?](https://nreig.com/do-you-need-ordinance-or-law-coverage/): Every state, city, or local municipality has different codes and requirements that residences and buildings must abide by. In some... - [What You Need to Know About Your Premises Liability Coverage](https://nreig.com/what-you-need-to-know-about-your-premises-liability-coverage/): As a property owner, you have certain legal responsibilities to - [Is Hiring Licensed and Insured Contractors Too Costly?](https://nreig.com/is-hiring-licensed-and-insured-contractors-too-costly/): Many investors worry that contractors will cost dramatically more if - [Property Management Errors & Omissions Coverage for Self-Managed Properties](https://nreig.com/property-management-errors-omissions-for-self-managed-properties/): If you have contracted with a property manager (PM) for - [Insurance Requirements for Lenders and What to Do When Coverage is Inadequate ](https://nreig.com/insurance-requirements-for-lenders-and-what-to-do-when-coverage-is-inadequate/): As uncertainty continues to loom in the real estate investing - [Taming the Flame: 5 Ways to Avoid a Fire Loss](https://nreig.com/taming-the-flame-5-ways-to-avoid-a-fire-loss/): One of the most severe losses your property could sustain - [Guest Article: State Legislatures Set Their Sights on Mortgage Lenders with California Leading the Way](https://nreig.com/guest-article-state-legislatures-set-their-sights-on-mortgage-lenders-with-california-leading-the-way/): Shutting down the economy resulted in skyrocketing unemployment nationally. In - [Barbecues and Things That Go Boom!](https://nreig.com/barbecues-and-things-that-go-boom/): There’s really nothing more American than barbecue and Independence Day. - [What is Cash for Keys and How to Avoid Tenant Damage?](https://nreig.com/what-is-cash-for-keys-and-how-to-avoid-tenant-damage/): What do you do when a normal check-out scenario clearly - [5 C’s to Choosing a Quality Property Manager](https://nreig.com/5-cs-to-choosing-a-quality-property-manager/): There are many key relationships involved in real estate investing - [Exploring the "Eviction Epidemic"](https://nreig.com/guest-post-exploring-the-eviction-epidemic/): You’ve probably seen the headlines: “Eviction Epidemic Hurts Families” or - [Protect Your Vacant Property from Water Damage This Winter](https://nreig.com/protect-your-vacant-property-from-water-damage-this-winter/): Of the three leading causes of property damage—fire, theft/vandalism, and - [Insurance for New Construction Properties](https://nreig.com/insurance-for-new-construction-properties/): When purchasing insurance for new construction properties, it is important - [Top Property Maintenance Tips for Every Season of 2020](https://nreig.com/top-property-maintenance-tips-for-every-season-of-2020/): As Benjamin Franklin is credited with saying, “If you fail - [5 Ways to Avoid Winter Fires](https://nreig.com/5-ways-to-evade-a-fire-in-colder-months/): Winter is here and an increased threat of property fires - [Tips for Controlling Your Insurance Costs in 2020](https://nreig.com/tips-for-controlling-your-insurance-costs-in-2020/): Following the trends of 2017 and 2018 (which saw five - [Simple Steps to Avoid a Dryer Fire](https://nreig.com/simple-steps-to-avoid-a-dryer-fire/): It is very easy to skip over maintenance on your - [NREIG Insurance Program Now Offering Terrorism Coverage](https://nreig.com/nreig-now-offering-terrorism-coverage/): Prior to 9/11, most insurance policies covered losses caused by a terrorist act in that they didn’t explicitly exclude terrorism... - [Cooking Fires: The Most Preventable Household Killer](https://nreig.com/cooking-fires-the-most-preventable-household-killer/): Cooking is the leading cause of home structure fires according - [Winter Maintenance Checklist](https://nreig.com/winter-maintenance-checklist/): We created our Winter Maintenance Checklist to help you stay - [Understanding Umbrella Policies](https://nreig.com/understanding-umbrella-policies/): The umbrella liability policy. One of the most misunderstood concepts - [How to Maximize Your Insurance Benefits for Rental Properties](https://nreig.com/maximize-your-insurance-benefits/): Though insurance shouldn’t be your only strategy for managing risk, - [What Less Daylight Means for Your Property](https://nreig.com/what-less-daylight-means-for-your-property/): The end of Daylight-Saving Time is coming, which means re-setting - [10 Cooking Tips for a Safe Thanksgiving](https://nreig.com/10-cooking-tips-for-a-safe-thanksgiving/): Thanksgiving is the leading day of the year for home - [Come One, Come Fall! Preparing Your Property for Autumn Risks](https://nreig.com/come-one-come-fall-seasonal-prep-for-your-specific-climate/): Autumn is the seasonal sign of change with its glorious - [Fall Maintenance Checklist](https://nreig.com/fall-maintenance-checklist/): We created our seasonal checklists to help you stay on - [Unique Challenges RE Investors Face in Disaster Preparation](https://nreig.com/unique-challenges-re-investors-face-in-disaster-preparation/): There are plenty of natural disaster preparation resources to help - [8 Great Ways to Protect Vacant & Renovation Properties](https://nreig.com/8-great-ways-to-protect-vacant-renovation-properties/): When we look at claims data, we see that many - [The Growing Threat of a Cyber Attack](https://nreig.com/the-growing-threat-of-a-cyber-attack/): A cyber attack can take many forms, and businesses of - [Insurance Coverages for Vacation Rentals](https://nreig.com/insurance-coverages-for-vacation-rentals/): With the growth in the vacation rental market thanks to - [Minimizing Water Woes This Fall](https://nreig.com/minimizing-water-woes-this-fall/): Improper drainage can compromise a property’s structural integrity, including the - [Reduce Your Risk of Mold After a Flood](https://nreig.com/reduce-your-risk-of-mold-after-a-flood/): With many parts of the country experiencing significant flooding this - [Storms on the Horizon: What to Do After Severe Weather](https://nreig.com/what-to-do-after-the-storm/): Tornadoes, high winds, and severe storms can strike with little - [Summer Maintenance Checklist](https://nreig.com/summer-maintenance-checklist/): We created our seasonal checklists to help you stay on - [Hurricane Preparation Tips](https://nreig.com/hurricane-preparation-tips/): Though hurricanes often come with some warning, preparing your properties - [Rehabbing Safely this Spring](https://nreig.com/rehabbing-safely-this-spring/): When rehabbing properties, the construction phase stands out as one - [Spring Maintenance Checklist](https://nreig.com/spring-maintenance-checklist/): We created our seasonal checklists to help you stay on - [Top 4 Myths About Renters Insurance](https://nreig.com/top-4-myths-about-renters-insurance/): Get the truth about one of the most valuable policies - [Solving the Most Common Issues with Rentals](https://nreig.com/solving-the-most-common-issues-with-rentals/): Rentals can be a great source of income, but if - [Stop Ice Damage by Doing These Two Things at Your Property](https://nreig.com/stop-ice-damage-by-doing-2-things-at-your-property/): The cold, hard fact is ice is NOT nice to - [Why You Need to Know Your Property's Claims History](https://nreig.com/why-you-need-to-know-your-propertys-claims-history/): Myth: A claim that occurred before I owned the property - [Why You Shouldn't Insure Investment Properties Under Your Homeowner's Policy](https://nreig.com/risks-of-using-your-homeowners-liability-policy-on-your-investment-properties/): Insuring your investment properties for liability under your homeowner’s policy - [How to Insure Your "Subject to" Property](https://nreig.com/insure-subject-to-investment-property/): Insurance for “Subject To” properties is a commonly misunderstood challenge. - [Insurance Coverage Options for Turnkey Operators](https://nreig.com/insurance-coverage-choices-available-turnkey-operators/): Turnkey operators have unique needs when it comes to how - [Understanding Coinsurance on Your Investment Property](https://nreig.com/understanding-co-insurance/): Coinsurance is an industry-wide property provision that states the amount - [The NREIG “Is It Covered?” Series](https://nreig.com/is-it-covered-series/): While insurance policies are probably not the most popular item - [Should I get a Personal Umbrella Policy for my Investment Properties?](https://nreig.com/debunking-the-personal-umbrella-policy-myth/): Myth: A personal umbrella policy is the best way to - [Premises Liability Coverage: General Contractors](https://nreig.com/premises-liability-coverage-end-regards-workers-hire/): Premises liability insurance covers property owners in case the owner’s - [Choosing the Right Agent & Insurance Coverage](https://nreig.com/choosing-right-agent-coverage/): Property investment can be a lucrative business. In fact, its - [How to Insure Your Investment Properties](https://nreig.com/insurance-issues-real-estate-investor/): If one of your single-family properties caught fire last night, - [NREIG Monthly Reporting Form](https://nreig.com/nreig-reporting-form/): Designed for real estate investors, our monthly reporting form is --- # # Detailed Content ## Pages - Published: 2025-10-17 - Modified: 2025-10-17 - URL: https://nreig.com/products-overview/log-cabin-insurance/ CabinArmor—Log Cabin Insurance for InvestorsRenting out a log cabin comes with a unique set of risks, requiring a specialized insurance policy. It’s important to carry insurance coverage that accounts for the distinct features of log homes and non-owner-occupied properties. National Real Estate Insurance Group offers custom property and liability packages to protect your investment and your business. Submit your property information using our online proposal request to receive a quote. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your property. Start a proposal request to get your log cabin insurance solution today! What does log cabin insurance cover? When renting a property to someone else, dwelling coverage can protect your property against direct physical damage to the property, such as: Fire Lightning Windstorm and Hail Vandalism Theft Named Windstorm and more Choose between Basic and Special form coverage when discussing insurance options with your agent. Liability insurance for log cabinsPremises Liability coverage is critical in protecting you, the investor, from claims that happen at your investment property. Examples may include: If someone were to slip and fall on your property If one of your tenant's dogs were to bite someone on your property If your tenant suffers medical issues due to a carbon monoxide leak Coverage extends to pools and spas, provided they meet code Medical expenses are included for third parties Our liability insurance options start as low as $7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal Are log cabin rentals insurable? Yes! Log homes are insurable as investment properties, but they come with unique risks that may affect coverage availability and cost. Due to their construction materials and typical remote location, log cabins are generally considered higher risk properties to insure. NREIG developed CabinArmor as a solution to these challenges, offering comprehensive protection for log cabins where traditional insurance often falls short. Are log cabins more expensive to insure? Log cabin insurance costs can vary greatly based on coverages you choose to carry, deductible, where the property is located, etc. With NREIG, you can insure your log cabin rental property at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance and only $120 per square foot for Replacement Cost coverage. Because of our monthly reporting form, you can pay for coverage monthly, never overpaying for rental property insurance. What deductible is right for a log cabin rental? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don’t need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you wouldn't ever file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. CabinArmor offers property deductible amounts of $2,500, $5,000, $10,000. Why choose us when insuring your log cabin? Ease of Use Insure your entire investment portfolio on one monthly schedule. Pay Monthly Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide coverage Insure your investment portfolio in one place with coverage across 48 states Request a ProposalAdd more coverage to your log cabinWith National Real Estate Insurance Group, you can add extra coverage options to your log cabin insurance. After you request a proposal, an agent will contact you to discuss your proposal and coverage options to limit your exposure. We have products ranging from flood to equipment breakdown to additional liability limit options. Loss of Rents Earth Movement Equipment Breakdown Service Line Coverage Tenant Protector Plan Flood Insurance Terrorism and Political Violence Other Structures Property Management E&O Ordinance or Law More Products Manage your rental property insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work one-on-one with a Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about log cabin insurance? Read one of our articles about insuring log cabins and wildfire-prone properties or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2025-12-08T21:33:34+00:00Unique Insurance Challenges for Log Cabin RentalsBy MacKenzie Coder|2025-12-08T21:33:34+00:00December 8th, 2025|Summary Log cabins are insurable, but their natural materials, remote locations, and higher exposure to fire, moisture, and maintenance issues MacKenzie Coder2025-10-17T19:07:45+00:00Insuring Log Cabins with National Real Estate Insurance Group By MacKenzie Coder|2025-10-17T19:07:45+00:00October 17th, 2025|In our Program, log cabins are defined as homes built from horizontal log walls, with corner notching, chinking, and a MacKenzie Coder2025-10-17T18:55:14+00:00NREIG Offers Insurance Solutions for Every Type of Investment PropertyBy MacKenzie Coder|2025-10-17T18:55:14+00:00July 8th, 2024|Protecting your investments... --- - Published: 2025-09-26 - Modified: 2025-12-10 - URL: https://nreig.com/products-overview/self-defense-insurance/ Self-Defense Education & Legal ProtectionOwning investment properties can sometimes place you in unpredictable or risky situations, whether it’s a dispute with a tenant or an unexpected encounter with a trespasser. The United States Concealed Carry Association (USCCA) provides real estate investors with access to training, resources, and legal protection to help you prepare for and respond to these challenges. National Real Estate Insurance Group has partnered with USCCA to connect real estate investors with membership options that include educational courses, self-defense training, and critical legal support. Through this partnership, NREIG clients also receive 5% off USCCA membership rates. Enroll NowWhat does a USCCA membership include? Self-Defense Liability Insurance – legal and financial protection after a lawful act of self-defense* Attorney Network – choice of your own attorney or option to select from 1,200+ trusted 2A lawyers Critical Response Team – 24/7 emergency hotline and response protocols Protector Academy – digital training, live-fire qualification, and legal education Certified Instructors/Classes - nationwide training access from trusted USCCA partners Education Tools – eBooks, Ask an Attorney videos, situational guides, and more Concealed Carry Magazine – 8 print issues annually + full digital archive Gun Laws & Reciprocity Map – know where and how to carry legally in every state *Insurance has been purchased by the USCCA and is one of the benefits of membership in the USCCA. USCCA members are additional insureds under a policy issued to the USCCA by Universal Fire and Casualty Insurance Company, an insurance company with its principal place of business in Hudsonville, MI. Coverage and benefits are subject to the terms, conditions, and exclusions of the insurance policy. Information provided herein is for informational purposes and is not intended to be a representation of coverage that may exist in any particular situation. Contact Delta Defense’s Customer Engagement Team at 800-674-9779 with any questions. Enroll NowWhat does the Self-Defense Liability Insurance Policy issued to the USCCA cover? The self-defense liability insurance policy issued to the USCCA covers claims stemming from: An Act of Self-Defense as long as you and your attorney are able to argue self-defense as a justification for your actions. “Covered Legal Liability”, meaning the legal liability of a USCCA member stemming from the use by another person of a firearm or other weapon that was stolen from the member. Extreme Risk Protection Orders (“Red Flag” proceedings), meaning there is insurance for defending against or challenging an extreme risk protection order issued against a USCCA member or any similar government action taken against a USCCA member for the purpose of temporarily seizing any otherwise lawfully possessed firearm. Does a USCCA member have to use a firearm in self-defense to trigger the self-defense liability policy? Regardless of if a firearm was used, ANY act of self-defense can trigger coverage under the policy. It is important to note that coverage is excluded if an insured uses a weapon they were not able to legally possess under federal law. What are the average costs of a self-defense case? There is no such thing as an “average” self-defense case. A standard criminal defense trial takes months to prepare and weeks in court to defend. Based on the situation, location, and experience level of an attorney, rates can range from $300 to $1,000+ per hour. This self-defense liability policy has come through for thousands of USCCA members, covering millions of dollars worth of claims. Add property and liability coverageNational Real Estate Insurance Group has property and liability insurance solutions to accommodate just about any type of investment properties. After you request a proposal, an agent will contact you to discuss the best coverages for your business. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Ordinance or Law Coverage Liability Insurance More Products Questions? For more information or questions regarding membership, please visit USCCA’s website. Want to learn more about insuring your investment properties? Read one of our articles or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2026-01-09T17:29:08+00:00New Year, Smarter Rentals: Safety, Leases, and Landlord Processes to Review NowBy MacKenzie Coder|2026-01-09T17:29:08+00:00January 9th, 2026|Summary January is a good time for landlords to reassess how their rentals are managed. Reviewing tenant communication, lease language, maintenance processes, BreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered MacKenzie Coder2026-01-02T20:14:34+00:00Water Losses Explained: Flood, Water Damage, and Sewer BackupBy MacKenzie Coder|2026-01-02T20:14:34+00:00December 30th, 2025|Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type MacKenzie Coder2026-01-02T20:05:57+00:00Insurance Providers Explained: What Every Real Estate Investor Should KnowBy MacKenzie Coder|2026-01-02T20:05:57+00:00December 30th, 2025|Not all insurance providers are created equally. Whether you're insuring your first rental or managing a growing portfolio, understanding the difference between --- - Published: 2025-05-27 - Modified: 2025-06-12 - URL: https://nreig.com/program-participation-agreement-changes-6-2025/ The NREIG Program Participation Agreement is signed by program insureds when an account is set up, and outlines the Terms & Conditions that govern participation in our insurance program. From time to time, updates are required to this agreement. Continued coverage in the Program assumes acceptance of the current agreement, which can be found on each account's Monthly Inventory Report. The most up-to-date Program Participation Agreement can be viewed here. Effective June 27, 2025: Below is a summary of the primary changes (NOT an all-inclusive list) organized by section number – please review the linked document for exact wording of all changes. Section 1. b. ii - You understand that this insurance program relies on a monthly reporting form whereby coverage for an insured location is updated monthly with the assigned carriers. Scheduled locations and their occupancy statuses must be accurately reported by you. Section 2 - Includes clarifications related to your consent to receive information electronically, communication via email is required in order to participate in this insurance program, you have an obligation to maintain a valid email address, and electronic signatures are the equivalent of a handwritten signature. Section 4. b. i - You must notify NREIG in writing in order to begin, add, or cancel coverage. Section 4. b. iii - You authorize NREIG to reallocate funds between locations on the same account in order to ensure the account is paid in full. Section 4. i. - Includes that: all habitational units and common hallways, regardless of whether vacant, renovation, or tenant-occupied, shall have operable smoke detectors present otherwise coverage will be void in the event of a fire loss. Section 4. k. - Reflects changes in per-transaction fees based on payment method: $1 per ACH transaction, $5 per check, 3% of the charge amount for credit cards, and up to $20 per transaction for wire transfers. Monthly installment fees (typically $7) will be eliminated with this change. Fees for coverage reinstatement and returned checks are also changing. Section 11 - Changes address the handling of legal fees and costs in the unlikely event that we have a dispute that must be settled by arbitration. Section 12 - The venue for all disputes shall be Jackson County, Missouri. --- - Published: 2025-04-03 - Modified: 2025-11-12 - URL: https://nreig.com/insurance-by-state/ Find Rental Property Insurance by State Protect your real estate investments with top-rated, tailored insurance coverage. Click on any state in the interactive map below to explore state-specific insurance requirements, coverage options, and expert insights for investors and landlords. Start by selecting a state to get the insurance details you need! --- - Published: 2024-11-07 - Modified: 2024-12-10 - URL: https://nreig.com/program-participation-agreement-changes-11-2024/ The NREIG Program Participation Agreement is signed by program insureds when an account is set up, and outlines the Terms & Conditions that govern participation in our insurance program. From time to time, updates are required to this agreement. Continued coverage in the Program assumes acceptance of the current agreement, which can be found on each account's Monthly Inventory Report. The most up to date Program Participation Agreement can be viewed here. The following updates were made in November 2024: Section 1. a. i - Changed acceptable AM Best rating to "A-" Section 1. b. iii - Clarified "due date" language to "monthly payment due date" Section 2 - Removed clause stating Client can withdraw consent to receive information electronically and receive documents by mail. Section 4. g (formerly 4. h & 4. i) - Combined two clauses and edited to clarify that a full month's cost is charged for coverage for any amount of time within that calendar month. Coverage is not prorated within a given month. Section 4. l (formerly 4. n) - Changed maximum Location Administration fee to $6 per month per location. Section 4. o (formerly 4. q) - Edited language to clarify that Evidence of Insurance (EOI) constitutes coverage in conjunction with the master policy at the time of loss. Section 4. p - Added clause that owner-occupied locations are not eligible for the program unless documented exceptions are granted. Section 4. q - Added clause that program participants may not engage a Public Adjuster for any loss reported in the program. Section 11 - Removed clause requiring NREIG to return all confidential information upon request. Section 15 - Added to clarify that the terms of certain sections continue beyond termination of this agreement. Section 17. 6 - Added to confirm that signature of the agreement is considered agreement to all clauses within. --- - Published: 2024-10-24 - Modified: 2025-09-26 - URL: https://nreig.com/storageguard-inquiry-form/ Online Form - NREIG StorageGuard ContactPowered by Formstack If the form doesn't load, please click here. --- - Published: 2024-04-24 - Modified: 2025-11-12 - URL: https://nreig.com/sms-text-messaging-terms-conditions/ Last updated: 6/5/24 Please read these SMS/Text Messaging Terms & Conditions carefully. By opting-in to our SMS/Text Messaging program, you expressly consent to receive informational and promotional text messages from National Real Estate Insurance Group, LLC and its affiliates and service providers (collectively, NREIG), including text messages made with an Autodialer, at the mobile phone number(s) you provide. You may opt-out of these communications at any time by replying STOP to any text message from NREIG or by otherwise contacting NREIG as indicated below. You can also receive help at any time by replying HELP to any text message from NREIG or by otherwise contacting NREIG as indicated below. Consent to receive text messages is not required to purchase any products or services from NREIG. Messaging and data rates may apply. By opting-in to our SMS/Text Messaging program, you also accept and agree to be bound by these SMS/Text Messaging Terms & Conditions and any other applicable terms and agreements related to your use of NREIG services. NREIG will provide a hard copy of these SMS/Text Messaging Terms & Conditions upon your request. Messaging Program Description NREIG offers its text messaging program whereby NREIG, and any applicable service providers, will text message you to provide you with information concerning your account activity with NREIG and other NREIG products, services, and promotions (collectively, the “NREIG Program”). NREIG and its service providers may, from time to time, use standard or an automatic telephone dialing system (“Autodialer”) to deliver text messages to you under the NREIG Program. You agree that you will not use the NREIG Program for any illegal or unlawful purposes. No insurance coverage may be bound or amended via text message. We prohibit texting of nonpublic information and will never ask you to do this. Examples of nonpublic information include bank account information, credit or debit card information, driver’s license number, social security number, and account passwords or access codes. Message Frequency Under the NREIG Program, the number of NREIG text messages that you receive may vary depending upon your account activity and your communication with NREIG. Cost NREIG does not impose a separate fee for sending NREIG text messages under the NREIG Program. However, standard message and data rates may apply to each text message sent or received in connection with the NREIG Program, as provided in your mobile telephone service rate plan. Please contact your mobile telephone carrier for pricing plans and information. Supported Carriers; Interruption The NREIG Program should be available through your equipment or mobile device when the equipment or device is within the operating range of your wireless service provider. The NREIG Program may not be available on all equipment/mobile devices, or through all wireless carriers, and not all functionalities of the NREIG Program are available on all equipment/mobile devices, or through all wireless carriers. NREIG may, from time to time, in its discretion and without notice to you, limit the carriers that support the NREIG Program. Delivery of information and content to your equipment/mobile device may fail due to a variety of circumstances or conditions. For instance, the NREIG Program may be subject to transmission limitation or interruption. You understand and acknowledge that mobile network services are outside of NREIG’s control, and NREIG is not responsible or liable for issues arising therefrom, or the failure thereof, including, without limitation, technical, hardware, software, electronic, network, telephone or other communications malfunctions, errors or failures of any kind, errors in transmission, traffic congestion, lost or unavailable network connections, telephone connections, wireless phone connections, website, Internet, or ISP availability, unauthorized human intervention, incomplete or inaccurate capture of entry information (regardless of cause) or failed, incomplete, garbled, jumbled or delayed transmissions which may limit or restrict your ability to receive or send a message, including any injury or damage to your or any other person’s equipment/wireless device relating to or resulting from participating in or using the NREIG Program. If the NREIG Program is not available within your intended location, you agree that your sole remedy is to cease using the NREIG Program. How to Opt-In To opt-in to receive Text Messages from NREIG under the NREIG Program, complete the SMS/Text Messaging Opt-In consent within our prescribed form and submit it to NREIG. NREIG will then send you a text message to confirm your enrollment in the NREIG Program. How to Opt-Out To stop receiving text messages from NREIG, text STOP to the ten-digit long code from which the text messages are being sent. You will then receive confirmation of your opt-out request. You may also opt- out by providing written notice to NREIG at 11500 N Ambassador Dr Ste 310, Kansas City, MO 64153, or by emailing NREIG at info@nreig. com. Your Mobile Telephone Number By opting-in, you represent and warrant that you are the account holder for the mobile telephone number(s) that you provide, or that you have the account holder’s permission to enter the mobile telephone number(s) that you provide, and that you will not forward NREIG messages to the mobile phone of any other person or entity. You agree to maintain accurate, complete, and up-to-date information with NREIG regarding your use of the NREIG Program, including, without limitation, notifying NREIG in writing immediately if you change, or cease being the regular user of, your mobile telephone number. You agree to indemnify NREIG in full for all claims, expenses, damages, and costs, including reasonable attorneys’ fees, related to or caused in whole or in part by your failure to notify NREIG if you change your telephone number, or cease being the regular user of, including, but not limited to, all claims, expenses, damages, and costs related to or arising under the Telephone Consumer Protection Act, 47 U. S. C. § 227 et seq. By opting-in, you are requesting to receive text messages even if your mobile phone number(s) may otherwise appear on a federal or state Do Not Call list or registry and you agree that, to the maximum extent permitted by law, your request overrides... --- - Published: 2024-03-12 - Modified: 2025-06-16 - URL: https://nreig.com/glossary/ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A Actual Cash Value Coverage (ACV)In the event of a covered loss, claims payouts are settled with a deduction for non-recoverable depreciation and the selected deductible. Additional InsuredAnyone afforded coverage under a Premises Liability policy who is not the policyholder but has authority to make a claim on the policy or has an insurable interest in the property. Additional Insureds may be listed on claim payments if they are also a Loss Payee and do receive notice if coverage lapses. This may be a business partner, lender, or a property manager. Additional InterestAnyone afforded coverage under a Liability policy who is not the policyholder. Additional Interests are notified when coverage lapses but may not be notified when coverage is bound. They receive no financial payout but may garner legal protection under the policy in the event of a lawsuit in which they are named. This may be a general contractor, a prior owner in a “Subject To” transaction, or a landlord on a tenant’s renter’s policy. Agreed Value PolicyAn insurance contract for which the value of the property coverage is agreed upon when the policy is purchased. This is the amount that is paid out in the event of a total loss, regardless of the actual amount of the loss. AggregateThe maximum amount an insurer will pay out over a set period of time, typically the span of the policy. ApartmentIn the NREIG program, an apartment building is a residential structure with five (5) or more units in one building.  Typically, these have a common entrance and hallway, and sit on a single lot or parcel of land under the same ownership. The largest apartment NREIG can insure is 20 units. B Basic FormTypically, the cheapest coverage form. Basic is a “Named Peril” policy that requires perils to be listed by name on the declarations page for the loss to be covered. Insureds carry the burden of proving the loss was caused by a covered peril. Builder's RiskA property insurance policy for a building or insured area that is currently being constructed. This policy is not insurance for the work being done, that would require the general contractor to have a General Contractors Liability policy. Burden of ProofIf a party carries the burden of proof, they must provide evidence to establish that they are correct. The other party is presumed to be correct and carries no such burden. C ClaimA formal submission made to an insurance company requesting coverage or compensation for a covered loss or policy event. Coinsurance A property insurance provision stating the amount of coverage that must be maintained at the property for the insured to collect the full amount of a loss. The amount of coverage required is written as a percentage of the total value of the property at the time of loss. Common coinsurance values are 80%, 90%, or 100%. If the property is underinsured according to the policy’s coinsurance provision, a claim payout may be reduced. Condominium (Condo)A building or complex of buildings containing individually owned apartments or houses along with the land upon which they sit. In the NREIG program, coverage for a Condo does not include coverage for the exterior of the home (considered “walls-in” coverage), which would be covered by the Home Owners Association. D DepreciationThe estimated reduction in value based on how much useful life is determined to be left in the damaged property. Depreciation is calculated by an adjuster at the time of loss, factoring in criteria such as age, condition, and useful life expectancy of the damaged property. DeductibleA specified amount of money that the insured person must pay before their insurance policy starts paying for covered expenses. *This amount is taken from claims settlements before the payout is sent to the client. E Excess LiabilityA liability policy that provides an increased limit over just one specific line of liability coverage. In the case of a landlord, that is likely your Premises Liability. Excess Liability has similarities to but is not the same as an Umbrella policy. F FloodA) A temporary condition of partial or complete inundation of two or more acres of normally dry land or two or more properties (at least one of which is the insured property) occurring from: Overflow of inland or tidal waters Unusual and rapid accumulation or runoff of surface waters from any source Mudflow Rising water or an intrusion due to heavy rains B) Collapse or subsidence of land along the shore of a lake or similar body of water resulting from erosion or undermining caused by waves or currents of water exceeding the cyclical levels that result in a flood. I Insurance to Value (ITV)In the NREIG program, ITV is the amount of property coverage divided by the square footage. Usually expressed as a coverage amount per square foot of the property, with carriers having a minimum requirement. Invested CapitalCalculated as the actual purchase price, minus land value, plus verifiable cost of improvements completed at the time of loss. L Loss PayeeThe loss payee is a third-party listed on that policy that isn’t notified of coverage being in effect but would be a beneficiary of claim payments. Loss of Rents (LOR)LOR helps a landlord recover lost rental income in case of a covered loss which renders the home uninhabitable and requires tenants to be temporarily displaced while repairs are being made. LOR coverage is limited to the necessary time needed to restore the home to a habitable condition, not to exceed 12 months (depending on the amount of coverage purchased). Loss RatioAn insurers ratio of covered losses incurred as a percentage of premiums earned. This represents an insurance company’s amount of premium taken in that was then paid back out in claims. M Manufactured Home Homes that were factory built (or prefabricated), frame construction, delivered via truck, and prepared on site. There is no permanent foundation or basement. Generally, manufactured homes are like mobile homes, but... --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/earthquakes-and-sinkholes/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryJulie Prewitt2025-08-18T17:59:10+00:00Protect Your Investments from the Damaging Effects of Earth MovementBy Julie Prewitt|2025-08-18T17:59:10+00:00May 29th, 2023|According to the U. S. Geological Survey (USGS), all 50 states have some potential to experience damaging earthquake shaking, and there are about 20,000 earthquakes around the world each year. Yet, in a poll by the MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or Julie Prewitt2023-06-12T14:46:33+00:002021 Loss Events in ReviewBy Julie Prewitt|2023-06-12T14:46:33+00:00January 31st, 2022|The year 2021 continued to be an interesting year in the insurance market for loss events, with extreme and unique weather events and ongoing uncertainty around COVID. The industry as a whole continues to experience --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/floods/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryShawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I Insured Investors2025-05-14T14:28:12+00:00How to Insure Coastal PropertiesBy Insured Investors|2025-05-14T14:28:12+00:00August 12th, 2024|Tropical storms and hurricanes can cause severe damage to properties in coastal locations. According to the NOAA Office for Coastal Management, the average hurricane costs $22. 8 billion in damages. So, knowing how to properly insure Insured Investors2025-05-14T14:34:26+00:00How Economic Conditions and Natural Disasters Affect the Insurance MarketBy Insured Investors|2025-05-14T14:34:26+00:00May 21st, 2024|Climbing insurance rates are being felt by homeowners and real estate investors across the country, in some areas more than others. As insurance becomes more expensive, property owners can't help but ask themselves what they Julie Prewitt2025-08-18T18:03:52+00:00Evaluating Your Flood Insurance OptionsBy Julie Prewitt|2025-08-18T18:03:52+00:00March 28th, 2023|It is important that property owners understand their risk exposure to flood AND are aware that their property insurance policy most likely does not include this coverage. There are several options available to you for MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or BreAnn Stephenson2023-05-01T14:49:46+00:00Is It Covered? Mold, Mildew & FungusBy BreAnn Stephenson|2023-05-01T14:49:46+00:00September 8th, 2022|Insurance coverage for Mold, Mildew, and Fungus is usually either completely excluded or may be very limited depending upon the policy. Many people assume that they will have at least some coverage for Mold when 12Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/hurricanes-and-storm-surges/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryInsured Investors2025-05-14T14:28:12+00:00How to Insure Coastal PropertiesBy Insured Investors|2025-05-14T14:28:12+00:00August 12th, 2024|Tropical storms and hurricanes can cause severe damage to properties in coastal locations. According to the NOAA Office for Coastal Management, the average hurricane costs $22. 8 billion in damages. So, knowing how to properly insure Insured Investors2025-05-14T14:34:26+00:00How Economic Conditions and Natural Disasters Affect the Insurance MarketBy Insured Investors|2025-05-14T14:34:26+00:00May 21st, 2024|Climbing insurance rates are being felt by homeowners and real estate investors across the country, in some areas more than others. As insurance becomes more expensive, property owners can't help but ask themselves what they MacKenzie Coder2023-09-05T19:43:35+00:00Hurricane Preparation Checklist for InvestorsBy MacKenzie Coder|2023-09-05T19:43:35+00:00August 28th, 2023|Natural disasters don't wait on humans to be ready to respond. This Investor Hurricane Preparation Checklist is designed to help you develop a maintenance plan that will give your property a better chance of surviving MacKenzie Coder2023-08-28T17:43:08+00:00Hurricane Preparation Checklist for TenantsBy MacKenzie Coder|2023-08-28T17:43:08+00:00August 28th, 2023|The best time to prepare is before hurricane season begins. As a renter, taking certain precautions can ensure the safety of everyone staying at the property and your belongings. Use the following from our Tenant BreAnn Stephenson2025-06-17T21:24:22+00:00Hurricane Recovery Tips & ResourcesBy BreAnn Stephenson|2025-06-17T21:24:22+00:00August 16th, 2023|You may have spent considerable time and effort preparing for a strong storm coming your way, but what should you do after the hurricane has passed? What follows are some hurricane recovery tips and resources MacKenzie Coder2023-10-09T18:15:10+00:00Named Storm Coverage for Investment Properties By MacKenzie Coder|2023-10-09T18:15:10+00:00May 1st, 2023|By policy definition, a named storm is defined as any Storm, Cyclone, Typhoon, Atmospheric Disturbance, Depression, Hurricane, Tropical Storm, or other Weather Phenomena designated by the US National Hurricane Center and to which a name 123Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/tornadoes-and-thunderstorms/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or BreAnn Stephenson2023-09-14T14:37:10+00:00Preparing Investment Properties for Wildfire, Hurricane and Tornado SeasonBy BreAnn Stephenson|2023-09-14T14:37:10+00:00August 4th, 2022|With the ability of catastrophic weather events to spring up and escalate quickly, preparing your properties and tenants well in advance is of the utmost importance. Once they begin there is usually little, if any, Julie Prewitt2025-06-17T21:15:34+00:00Three Types of Coverage Triggered by WindstormsBy Julie Prewitt|2025-06-17T21:15:34+00:00May 26th, 2022|As spring weather approaches, and with it, the chance for severe storms, now is the best time to make sure you have the appropriate insurance coverage needed for various windstorms. Some climate events may involve Julie Prewitt2023-06-12T14:46:33+00:002021 Loss Events in ReviewBy Julie Prewitt|2023-06-12T14:46:33+00:00January 31st, 2022|The year 2021 continued to be an interesting year in the insurance market for loss events, with extreme and unique weather events and ongoing uncertainty around COVID. The industry as a whole continues to experience BreAnn Stephenson2025-06-02T19:24:05+00:00Unique Challenges RE Investors Face in Disaster PreparationBy BreAnn Stephenson|2025-06-02T19:24:05+00:00August 29th, 2019|There are plenty of natural disaster preparation resources to help homeowners get their families and their homes ready for a potential natural disaster. However, as a real estate investor, you have some unique challenges in BreAnn Stephenson2025-07-29T15:08:26+00:00Storms on the Horizon: What to Do After Severe WeatherBy BreAnn Stephenson|2025-07-29T15:08:26+00:00May 29th, 2019|Tornadoes, high winds, and severe storms can strike with little warning, leaving a trail of destruction behind. While you can't prevent extreme weather, you can take mitigative steps following a storm to reduce the risk of --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/wildfires/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryInsured Investors2025-05-14T14:34:26+00:00How Economic Conditions and Natural Disasters Affect the Insurance MarketBy Insured Investors|2025-05-14T14:34:26+00:00May 21st, 2024|Climbing insurance rates are being felt by homeowners and real estate investors across the country, in some areas more than others. As insurance becomes more expensive, property owners can't help but ask themselves what they MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or BreAnn Stephenson2023-09-14T14:37:10+00:00Preparing Investment Properties for Wildfire, Hurricane and Tornado SeasonBy BreAnn Stephenson|2023-09-14T14:37:10+00:00August 4th, 2022|With the ability of catastrophic weather events to spring up and escalate quickly, preparing your properties and tenants well in advance is of the utmost importance. Once they begin there is usually little, if any, Julie Prewitt2023-06-12T14:46:33+00:002021 Loss Events in ReviewBy Julie Prewitt|2023-06-12T14:46:33+00:00January 31st, 2022|The year 2021 continued to be an interesting year in the insurance market for loss events, with extreme and unique weather events and ongoing uncertainty around COVID. The industry as a whole continues to experience BreAnn Stephenson2024-09-16T14:42:20+00:00Taming the Flame: 5 Ways to Avoid a Fire LossBy BreAnn Stephenson|2024-09-16T14:42:20+00:00August 26th, 2020|One of the most severe losses your property could sustain is a fire. Our review of almost a decade of claims data revealed that the average fire costs an investor at least $30,000, with many fires BreAnn Stephenson2025-06-02T19:24:05+00:00Unique Challenges RE Investors Face in Disaster PreparationBy BreAnn Stephenson|2025-06-02T19:24:05+00:00August 29th, 2019|There are plenty of natural disaster preparation resources to help homeowners get their families and their homes ready for a potential natural disaster. However, as a real estate investor, you have some unique challenges in --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/winter-storms/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or BreAnn Stephenson2023-06-26T18:01:20+00:00Is It Covered? Snow, Ice & SleetBy BreAnn Stephenson|2023-06-26T18:01:20+00:00November 16th, 2022| Did you know that damage from the weight of snow, ice, or sleet is only covered under certain policy formats? For those who invest in more northern or mountainous areas, it is important to Julie Prewitt2023-06-12T14:46:33+00:002021 Loss Events in ReviewBy Julie Prewitt|2023-06-12T14:46:33+00:00January 31st, 2022|The year 2021 continued to be an interesting year in the insurance market for loss events, with extreme and unique weather events and ongoing uncertainty around COVID. The industry as a whole continues to experience 12Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/investing-tips/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2026-01-09T17:29:08+00:00New Year, Smarter Rentals: Safety, Leases, and Landlord Processes to Review NowBy MacKenzie Coder|2026-01-09T17:29:08+00:00January 9th, 2026|Summary January is a good time for landlords to reassess how their rentals are managed. Reviewing tenant communication, lease language, maintenance processes, and insurance coverage can help reduce risk, improve efficiency, and set expectations for the year MacKenzie Coder2025-10-06T18:55:19+00:00Fix-and-Flip vs. Buy-and-Hold: Which Real Estate Investment Strategy is Right for Me? By MacKenzie Coder|2025-10-06T18:55:19+00:00September 26th, 2025|There’s no single path to success in real estate, and the right investment strategy depends on what you’re working toward. Two of the most common approaches, fix and flip and buy and hold, can both Anderson Advisors2025-03-04T16:43:24+00:00The Ultimate Tax Reduction Guide for Real Estate InvestorsBy Anderson Advisors|2025-03-04T16:43:24+00:00March 4th, 2025|Owning rental properties can be a profitable investment, but without a well-structured tax strategy, you could be overpaying the IRS and missing out on significant savings. In this guide, we’ll explore essential tax deductions and BreAnn Stephenson2024-11-26T22:16:44+00:00Five Signs Your Tree is in TroubleBy BreAnn Stephenson|2024-11-26T22:16:44+00:00November 26th, 2024|It’s easy to take tree health for granted. We assume our trees will always remain standing and won’t require any maintenance. However, costly problems can sneak up on you if you don’t include tree inspection Insured Investors2025-05-14T14:22:38+00:00Why Maintaining a Relationship with Your Insurance Agent is VitalBy Insured Investors|2025-05-14T14:22:38+00:00November 11th, 2024|Similar to other real estate investing relationships like lenders, contractors, and more, maintaining a relationship with your insurance agent is vital for a successful business. While most investors will agree that insurance is necessary, they MacKenzie Coder2023-10-30T17:03:33+00:00Rental Property Hazard Recognition ChecklistBy MacKenzie Coder|2023-10-30T17:03:33+00:00October 30th, 2023|As a landlord and property owner, ensuring the safety and well-being of your tenants is paramount. We’ve created the Rental Property Hazard Recognition Checklist to help you assess and address potential hazards at your rental 12···4Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/seasonal-tips/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage BreAnn Stephenson2025-09-22T16:39:54+00:00Life-Saving Tools and Methods to Protect Your Tenants from a FireBy BreAnn Stephenson|2025-09-22T16:39:54+00:00September 22nd, 2025|Aside from regular inspections, smoke alarms, fire suppression tools, and emergency planning are crucial components in protecting your tenants from a fire. These life-saving measures can cut potential fire deaths in half. Alarms & Fire Shawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I BreAnn Stephenson2024-11-26T22:16:44+00:00Five Signs Your Tree is in TroubleBy BreAnn Stephenson|2024-11-26T22:16:44+00:00November 26th, 2024|It’s easy to take tree health for granted. We assume our trees will always remain standing and won’t require any maintenance. However, costly problems can sneak up on you if you don’t include tree inspection 12···7Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/weather-events/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage Shawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I MacKenzie Coder2024-12-26T15:51:41+00:002024: A Year of Extreme Weather Across the U. S. By MacKenzie Coder|2024-12-26T15:51:41+00:00December 26th, 2024|The year 2024 brought an array of weather extremes across the United States, marking one of the most tumultuous years in recent memory. From hurricanes and wildfires to record-setting tornadoes and flooding, nature’s force left Insured Investors2025-05-14T14:28:12+00:00How to Insure Coastal PropertiesBy Insured Investors|2025-05-14T14:28:12+00:00August 12th, 2024|Tropical storms and hurricanes can cause severe damage to properties in coastal locations. According to the NOAA Office for Coastal Management, the average hurricane costs $22. 8 billion in damages. So, knowing how to properly insure 12···5Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/checklists/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2025-12-23T21:05:17+00:00Landlord Checklist: Leasing Your First Rental PropertyBy MacKenzie Coder|2025-12-23T21:05:17+00:00December 8th, 2025|Leasing your first rental property can feel overwhelming, but the right preparation makes all the difference. Use this checklist to ensure your property is safe, compliant, and properly protected before welcoming your first tenant. Property Prep & Safety MacKenzie Coder2025-10-30T16:11:46+00:00Semiannual Insurance Policy Review ChecklistBy MacKenzie Coder|2025-10-30T16:11:46+00:00October 30th, 2025|It’s best practice to review your insurance documents for accuracy at least twice a year (many real estate investors use daylight saving time as a reminder to do so). Of course, any time major changes MacKenzie Coder2023-10-30T17:03:33+00:00Rental Property Hazard Recognition ChecklistBy MacKenzie Coder|2023-10-30T17:03:33+00:00October 30th, 2023|As a landlord and property owner, ensuring the safety and well-being of your tenants is paramount. We’ve created the Rental Property Hazard Recognition Checklist to help you assess and address potential hazards at your rental MacKenzie Coder2023-10-30T14:47:11+00:00Condition of Rental Property ChecklistBy MacKenzie Coder|2023-10-30T14:47:11+00:00October 30th, 2023|Keeping a profitable and well-maintained rental property begins with a thorough understanding of its condition, both at move-in and move-out. To make this process easier and more systematic, we've created the Condition of Rental Property MacKenzie Coder2024-01-17T15:37:45+00:00Cleaning and Decluttering ChecklistBy MacKenzie Coder|2024-01-17T15:37:45+00:00October 23rd, 2023|Who doesn’t love a clean and well-kept home? For investors, it’s not just about aesthetics; general cleanliness can impact property value, tenant satisfaction, maintenance costs, and more. Our Cleaning and Decluttering Checklist is the perfect MacKenzie Coder2024-09-16T15:41:29+00:00Smoke Detector Maintenance and RecommendationsBy MacKenzie Coder|2024-09-16T15:41:29+00:00October 22nd, 2023|Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a 123Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/seasonal-tips/summer/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2024-11-26T22:16:44+00:00Five Signs Your Tree is in TroubleBy BreAnn Stephenson|2024-11-26T22:16:44+00:00November 26th, 2024|It’s easy to take tree health for granted. We assume our trees will always remain standing and won’t require any maintenance. However, costly problems can sneak up on you if you don’t include tree inspection MacKenzie Coder2024-09-16T15:41:29+00:00Smoke Detector Maintenance and RecommendationsBy MacKenzie Coder|2024-09-16T15:41:29+00:00October 22nd, 2023|Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a BreAnn Stephenson2025-06-17T21:24:22+00:00Hurricane Recovery Tips & ResourcesBy BreAnn Stephenson|2025-06-17T21:24:22+00:00August 16th, 2023|You may have spent considerable time and effort preparing for a strong storm coming your way, but what should you do after the hurricane has passed? What follows are some hurricane recovery tips and resources BreAnn Stephenson2023-06-26T17:59:17+00:00Pools, Decks & Trampolines – Are These Amenities Worth It? By BreAnn Stephenson|2023-06-26T17:59:17+00:00May 25th, 2023|To attract the best tenants and beat out the competition, you may want to offer unique rental amenities. Some common perks may include a spacious kitchen, upgrades to flooring and countertops, or perhaps lawn service MacKenzie Coder2023-10-09T18:15:10+00:00Named Storm Coverage for Investment Properties By MacKenzie Coder|2023-10-09T18:15:10+00:00May 1st, 2023|By policy definition, a named storm is defined as any Storm, Cyclone, Typhoon, Atmospheric Disturbance, Depression, Hurricane, Tropical Storm, or other Weather Phenomena designated by the US National Hurricane Center and to which a name MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or 123Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/seasonal-tips/winter/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage MacKenzie Coder2024-09-16T15:41:29+00:00Smoke Detector Maintenance and RecommendationsBy MacKenzie Coder|2024-09-16T15:41:29+00:00October 22nd, 2023|Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a Julie Prewitt2024-09-16T15:34:52+00:00Information About Burst Pipes at Your PropertiesBy Julie Prewitt|2024-09-16T15:34:52+00:00February 22nd, 2023|Even if you own properties in states not as prone to subzero temperatures during the winter, it is important to anticipate an increase in incidents related to burst pipes. Here we've compiled some helpful information MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or 123Next --- - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://nreig.com/resources/seasonal-tips/fall/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage MacKenzie Coder2024-09-16T15:41:29+00:00Smoke Detector Maintenance and RecommendationsBy MacKenzie Coder|2024-09-16T15:41:29+00:00October 22nd, 2023|Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a MacKenzie Coder2023-09-05T19:43:35+00:00Hurricane Preparation Checklist for InvestorsBy MacKenzie Coder|2023-09-05T19:43:35+00:00August 28th, 2023|Natural disasters don't wait on humans to be ready to respond. This Investor Hurricane Preparation Checklist is designed to help you develop a maintenance plan that will give your property a better chance of surviving MacKenzie Coder2023-08-28T17:43:08+00:00Hurricane Preparation Checklist for TenantsBy MacKenzie Coder|2023-08-28T17:43:08+00:00August 28th, 2023|The best time to prepare is before hurricane season begins. As a renter, taking certain precautions can ensure the safety of everyone staying at the property and your belongings. Use the following from our Tenant BreAnn Stephenson2025-06-17T21:24:22+00:00Hurricane Recovery Tips & ResourcesBy BreAnn Stephenson|2025-06-17T21:24:22+00:00August 16th, 2023|You may have spent considerable time and effort preparing for a strong storm coming your way, but what should you do after the hurricane has passed? What follows are some hurricane recovery tips and resources MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or 123Next --- - Published: 2023-07-28 - Modified: 2024-01-17 - URL: https://nreig.com/program-participation-agreement-changes-7-2023/ The NREIG Program Participation Agreement is signed by program insureds when an account is set up, and outlines the Terms & Conditions that govern participation in our insurance program. From time to time, updates are required to this agreement. Continued coverage in the Program assumes acceptance of the current agreement which can be found on each account's Monthly Inventory Report. The most up to date Program Participation Agreement can be viewed here. The following updates were made in August 2023: Section 1. b. iii - Added clause noting that for cost-bearing changes made on annual billed accounts, the amount due for the remainder of the annual policy term will be drafted on the accounts next monthly payment date. Section 1. b. iii - Changed net payment terms from 30 days to 10 days Section 2 - Added consent to receive recurring communications via phone, voicemail, text, email, and fax messaging related to marketing, servicing, and billing activity. Section 4. b - Changed the Insurance to Value (ITV) requirement for coverage with no co-insurance from $60 to $75 per square foot to meet new carrier requirements Section 4. d - Added Knob & Tube to wiring type disclosure Section 4. e & f - Split Detached Structures terms into two separate items for clarity Section 4. l (formerly 4. k) - Added "tenant" in front of occupied to clarify that owner-occupied locations are not eligible for the Program. Section 4. n (formery 4. m) - Added #5 Returned ACH fee Section 4. q - Added to provide clarity during the claims process to show the EOI and policy match up to outline what coverage is in force for the insured location at the time of loss. --- - Published: 2023-02-28 - Modified: 2024-11-22 - URL: https://nreig.com/amp-proposal-request/ Online Form - NREIG Main Proposal Request --- - Published: 2023-01-10 - Modified: 2025-06-18 - URL: https://nreig.com/products-overview/tenant-protector-plan/ Tenant Protector Plan® Coverage for LandlordsThe Tenant Protector Plan® provides landlords with added protection against tenant-caused losses, without the hassle of tracking down proof of renters insurance. Beyond convenience, TPP can also help minimize the frequency of claims and support a cleaner loss history, both of which can contribute to maintaining more favorable insurance terms over time. The Tenant Protector Plan® can be purchased as a standalone policy or as an add-on to your property and liability coverage. Please note, for Tenant Liability coverage to apply, the location must have an underlying property insurance policy, either through NREIG or another insurer. Submit your property information using our online request form to receive a custom proposal. An NREIG associate will contact you to review your insurance options and help you select the best coverage for your business. Start a proposal request to get the Tenant Protector Plan® today! What does the Tenant Protector Plan® cover? The Tenant Protector Plan® is available in two options: TPP, the full coverage plan that includes Tenant Liability, Sewer & Drain Backup, Contents, and Skip Rent; and TPPx, which provides Tenant Liability coverage only. TPPx TPP Tenant Liability Liability coverage for tenant-negligent property losses Covered causes of loss include Fire, Explosion, and Smoke TPPx $100,000 coverage limit TPP Choose from a $60,000 or $100,000 coverage limit Subject to a $500 deductible Property Coverage Sewer & Drain Backup coverage for damage to the property caused by a clogged sewer line, failed sump pump, or backed-up drain that forces water into the home. $10,000 coverage limit Subject to a $500 deductible Contents Coverage Coverage to replace belongings owned by the renter that are damaged in a property loss caused by their own negligence. Negligent party contents coverage $10,000 coverage limit Subject to a $500 deductible Belongings of non-negligent tenants of adjoining units affected by the same covered loss $2,500 coverage limit per unit $7,500 aggregate limit per loss Covered causes of loss: Fire Explosion Smoke Sewer & Drain** Wind/Hail** Skip Rent Up to $1,000 reimbursement to cover the last month’s rent if a tenant skips out mid-lease without warning. Please note: a lease must have been active for the previous 3 months to be considered for coverage. Covered causes of skip rent: Tenant moves out without notice (on a 3-month or longer lease contract) Military deployment Untimely death Completed eviction triggered by financial hardship or renter breaking the terms of the lease *Only covers water damage to the property, does not cover damage to service lines (which can be purchased on our Service Lines policy) **Damage does not need to be tenant-induced Request a Proposal Why do investors choose the Tenant Protector Plan®? In the event of tenant-caused negligent losses, your property carrier will cover the cost of repairs, but without TPP or TPPx, the loss will become part of your claim history and may contribute to higher premiums in the future. The Tenant Protector Plan® can help reduce the long-term impact of tenant-caused losses. Through the TPP and TPPx Tenant Liability coverage, the property carrier may recover some or all of the amount paid out by pursuing reimbursement from the negligent party–a process known as subrogation. This helps protect your loss history. What if my tenants have renters insurance? Both TPP and TPPx alleviate the need to track and verify renters insurance while protecting you, the investor, against tenant-caused losses. While it’s ideal for tenants to maintain a renters insurance policy, lapses in coverage can leave you responsible for damages caused by tenant negligence. The Tenant Protector Plan® ensures you have coverage when you need it most. In the event of a covered loss, TPP will work in excess of the tenant’s liability limit. Learn more about how these two policies can work together here. Can I choose which locations carry this coverage? Yes. It is not required to carry TPP or TPPx on all occupied locations in your portfolio. How much does the Tenant Protector Plan® cost? Cost for the Tenant Protector Plan® will depend on the number of units insured and the limit of tenant liability chosen. Typically, TPP ranges from $10-$28 per month (plus taxes and fees). TPPx starts as low as $6 per unit per month (plus taxes and fees). Some investors choose to pass this cost on to their tenants in their lease agreement since they also benefit from this coverage. Is the Tenant Protector Plan® available on short-term rentals? Short-term rentals are eligible for TPP but are not eligible for TPPx. Due to the increased risk associated with frequently changing tenants, the cost for TPP is typically higher than for long-term rental properties. Please note: a lease must have been active for the previous 3 months to be considered for coverage. Can I purchase the Tenant Protector Plan® in place of Property Insurance for tenant-negligent fire coverage? No. In the event of a covered loss, the underlying property insurance is the primary coverage that pays to repair the damage. The Tenant Protector Plan® allows the property carrier to recover some or all of what they paid out if the damage was caused by tenant negligence, helping stabilize your loss history and protect you from future rate increases due to claims out of your control. Add property and liability coverageIf you don't already insure your rental properties with National Real Estate Insurance Group, we offer one of the most comprehensive insurance solutions for investment properties. Our products can accommodate almost any type of investment properties. Rental Property Insurance Vacation Rental Property Insurance Condo Insurance Liability Insurance Flood Insurance Mobile Home Insurance More Products Manage your Tenant Protector Plan® with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance... --- - Published: 2022-12-05 - Modified: 2023-09-19 - URL: https://nreig.com/resources/seasonal-tips/spring/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryShawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I MacKenzie Coder2024-09-16T15:41:29+00:00Smoke Detector Maintenance and RecommendationsBy MacKenzie Coder|2024-09-16T15:41:29+00:00October 22nd, 2023|Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a BreAnn Stephenson2023-02-27T19:44:33+00:00Preparing Your Property for Severe Spring WeatherBy BreAnn Stephenson|2023-02-27T19:44:33+00:00February 27th, 2023|It may feel a little early to be talking about spring weather preparedness, but now is the time to start thinking about potential risks. You want to prepare your property before they present a real MacKenzie Coder2023-02-28T22:17:35+00:002022 Insured Loss Events in ReviewBy MacKenzie Coder|2023-02-28T22:17:35+00:00February 6th, 2023|It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or BreAnn Stephenson2023-05-01T14:49:46+00:00Is It Covered? Mold, Mildew & FungusBy BreAnn Stephenson|2023-05-01T14:49:46+00:00September 8th, 2022|Insurance coverage for Mold, Mildew, and Fungus is usually either completely excluded or may be very limited depending upon the policy. Many people assume that they will have at least some coverage for Mold when BreAnn Stephenson2023-03-29T13:09:02+00:00Is It Covered? FloodBy BreAnn Stephenson|2023-03-29T13:09:02+00:00August 9th, 2022|The question is always, “When is it a flood? ” Because we deem various types of water events “floods” even if they do not meet the insurance definition, it can become confusing to know where your 12Next --- - Published: 2022-09-09 - Modified: 2024-01-17 - URL: https://nreig.com/california-consumer-privacy-act-notice/ Last revised: Sept 9, 2022 California Consumer Privacy Act Notice This Privacy Notice for California Residents supplements the information contained in the Privacy Policy of National Real Estate Insurance Group (NREIG). This Privacy Notice describes how NREIG and related legal entities collect, use, and disclose Personal Information in the course of our business, including, but not limited to, through systems maintained by or on behalf of NREIG, such as our website, https://nreig. com. Personal Information Defined For purposes of this Privacy Notice “Personal Information” means any information that identifies, relates to, describes, references, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer, household, or device. Not all information we collect is Personal Information under this definition. For example, Personal Information does not include publicly available information collected from government records or information that has been de-identified or aggregated in a way that no longer allows identification of a particular person. Disclosures Regarding Personal Information Personal Information We Collect We have collected Personal Information from consumers within the last twelve (12) months in the categories shown in the table below. Our listing of these categories does not mean that all categories or the examples listed in each category are collected about everyone who uses our services or interacts with our systems. We are providing a full list here to comply with disclosure obligations because some of the information may have been collected about some consumers. Category Examples Collected A. Identifiers A real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, Social Security number, driver’s license number, passport number, or other similar identifiers. YES B. Personal Information categories listed in the California Customer Records statute (Cal. Civ. Code § 1798. 80(e)). A name, signature, Social Security Number, physical characteristics or description, address, telephone number, passport number, driver’s license or state identification card number, insurance policy number, education, employment, employment history, bank account number, credit card number, debit card number, or any other financial information, medical information, or health insurance information. Some personal information included in this category may overlap with other categories. YES C. Protected classification characteristics under California or federal law. Age (40 years or older), race, color, ancestry, national origin, citizenship, religion or creed, marital status, medical condition, physical or mental disability, sex (including gender, gender identity, gender expression, pregnancy or childbirth and related medical conditions), sexual orientation, veteran or military status, genetic information (including familial genetic information). YES D. Commercial Information. Records of personal property, products or services purchased, obtained, or considered, or other purchasing or consuming histories or tendencies. YES E. Biometric Information. Genetic, physiological, behavioral, and biological characteristics, or activity patterns used to extract a template or other identifier or identifying information, such as, fingerprints, faceprints, and voiceprints, iris or retina scans, keystroke, gait, or other physical patterns, and sleep, health, or exercise data. NO F. Internet or other similar network activity. Browsing history, search history, information on a consumer's interaction with a website, application, or advertisement. YES G. Geolocation Data. Physical location or movements. YES H. Sensory data. Audio, electronic, visual, thermal, olfactory, or similar information. NO I. Professional or employment-related information. Current or past job history or performance evaluations. NO J. Non-public education information Education records directly related to a student maintained by an educational institution or party acting on its behalf, such as grades, transcripts, class lists, student schedules, student identification codes, student financial information, or student disciplinary records. NO K. Inferences drawn from other personal information. Profile reflecting a person's preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes. NO Sources of Personal Information We Collect We collect the categories of Personal Information listed above from various sources. This section lists and describes those sources. Directly from our clients, claimants, or their agents. This includes insurance application information and additional information that you provide to us, including when you complete certain forms, post or comment, upload or submit any material, request information or contact us with inquiries, or when you use other aspects of our services, may be collected and stored. Indirectly from our clients, claimants, or their agents. We may automatically collect Personal Information from you when you use our services or interact with our systems through the use of tracking technologies or by other passive means. This “passively collected” information helps us to improve our services and allows us to ensure our systems work as designed and in a way that meets your expectations. From third parties. We may collect Personal Information about you from third parties, either at your request or for our business purposes. Directly from publicly available sources. We may collect information directly from publicly available sources, such as county property tax databases. Use of Information We use both Personal Information and non-Personal Information to deliver services to you, to help improve your interaction with our systems, and to support our business purpose. Some examples of ways in which we may use or disclose Personal Information include: To identify you when you sign on to your account To create and maintain your account and online profile To respond to your questions or inquiries To ask you to participate in surveys, or otherwise provide feedback To tailor advertisements to you, including through the use of cookies, web beacons, pixels, and other similar technologies To improve, upgrade or enhance our systems and our services To develop new products and services To create de-identified or aggregated lists of information for any the uses stated above To operate our systems or provide our services To carry out other purposes that are disclosed to you and/or to which you consent The categories of Personal Information disclosed for a business purpose within the past twelve (12) months include any of the categories of Personal Information identified as “Collected” in the table at the beginning of this section. We disclose your Personal Information to the following categories of other parties for a business purpose: Our... --- - Published: 2021-08-03 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/service-line-insurance/ yes Service Line coverage for investment propertiesThe Service Line policy provides coverage for damage to any exterior underground piping or wiring from the property to the main line that provides a service to the property premises. This may include communications cables, electrical power, heating, sewage, or water. National Real Estate Insurance Group offers Service Line coverage as a standalone policy or as an add-on to your property coverage to help protect you financially in the event of these costly incidents. Submit your property information using our online proposal request and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your specific situation. Start a proposal request and ask to include Service Line coverage or contact your CSA today! What does Service Line insurance cover? You have the option of two limits of coverage - $10,000 or $15,000*. Coverage includes: Cost to repair or replace the service line itself with the same kind or quality Excavation costs as required for the repair Reasonable costs to make temporary repairs and/or expedite permanent repairs Repair or replacement of damaged outdoor property caused by the service line failure such as trees, lawns, driveways, or sidewalks. Subject to a $500 deductible Service Line coverage is available in all 50 states. Please note that this coverage does not cover any damage to the dwelling that results from the service line failure but is intended to cover the costs associated with the repair or replacement of the service line and outdoor area. *Coverage for service lines that are 50 years or older is limited to $2,500. Request a Proposal What type of damage is covered? Services line failure can include a leak, break, tear, rupture, collapse, or electrical arcing caused by wear and tear, deterioration, rust or other corrosion, mechanical breakdown, weight of equipment or vehicles, vermin or insects, external force from a form of excavation, freezing, or tree or other root invasion. Does this policy cover sewer back-up? If the sewer line is damaged as a result of the service line failure, this product will provide coverage to repair or replace the damaged line as well as excavation and outdoor property that may have been damaged. If the damaged sewer line causes a back-up into the house, the damage caused inside would not be covered. Most property policies exclude this cause of loss. Check out our Tenant Protector Plan to obtain coverage for Sewer Back-up. How much does Service Line insurance cost? Insurance costs for Service Line coverage can start as low as $10 per month per property, plus taxes and fees, but can vary based on the property and level of coverage. Because of our monthly reporting form, you can pay for coverage monthly, never paying for more than you need. Why choose us for Service Line Coverage? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Trusted Carriers All coverage underwritten by carriers rated “A-” or better by AM Best Nationwide coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add property and liability coverageNational Real Estate Insurance Group has property and liability insurance solutions to accommodate just about any type of investment properties. After you request a proposal, an agent will contact you to discuss the best coverages for your business. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Ordinance or Law Coverage Liability Insurance More Products Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about insuring your investment properties? Read one of our articles or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2026-01-02T20:14:34+00:00Water Losses Explained: Flood, Water Damage, and Sewer BackupBy MacKenzie Coder|2026-01-02T20:14:34+00:00December 30th, 2025|Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type Shawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real BreAnn Stephenson2024-09-16T15:37:42+00:00Is It Covered? Burst PipesBy BreAnn Stephenson|2024-09-16T15:37:42+00:00February 6th, 2023|It's a common misconception that water damage from a burst pipe at your investment property is automatically covered. Water Damage BreAnn Stephenson2024-12-02T20:57:10+00:00Is It Covered? Sewer BackupBy BreAnn Stephenson|2024-12-02T20:57:10+00:00December 17th, 2022|Many people think their property policy automatically includes Sewer Backup coverage. However, according to the Insurance Information Institute (I. I. I. ), most --- - Published: 2021-03-17 - Modified: 2025-11-12 - URL: https://nreig.com/products-overview/program/ Insurance Program for Real Estate Investment Properties Regardless of your portfolio size or ownership entities, simplify your insurance experience with all of your properties on one monthly report. Our renowned Program, REInsurePro, accommodates residential investment properties in any stage of occupancy with the ease and flexibility you can’t find anywhere else. Request a Program Proposal Our Program can accommodate for the following types of investment properties Rental Property Single family home up to twenty-unit tenant-occupied building. Learn More Vacant Property Up to twenty unit unoccupied dwelling. Learn More Renovation Single family to twenty-unit dwelling being renovated. Learn More New Construction Ground up construction of entirely new structure. Learn More Vacant Land Liability coverage for a vacant lot or plot of land. Learn More Vacation Rental Furnished property rented out on a short-term basis. Learn More Mobile Home Manufactured, modular or mobile investment dwelling. Learn More Condo Individually-owned unit in any stage of occupancy. Learn More Log Cabin Coverage for investment properties built from logs. Learn More Lender-Placed Insurance Insurance coverage to protect the interests of lenders. Learn More Non-Performing Notes Coverage to protect your interest while note terms are being re-worked. Learn More Liability Only Liability as a stand-alone option is available. Learn More Customize your insurance package in our Residential Investment Property program with these ancillary products, available on our monthly reporting form Flood Insurance For damage by rising water from external sources. Learn More Earth Movement Coverage for earthquake shock and sinkhole losses. Learn More Tenant Protector Plan Coverage for tenant-caused negligent losses. Learn More Terrorism and Political Violence Coverage for damage caused by terrorist acts. Learn More Service Line For damage to exterior service lines. Learn More Property Management Errors & Omissions Professional Liability for self-managed property owners. Learn More Equipment Breakdown Coverage for losses caused by failure of equipment. Learn More Request a proposal today With insurance solutions designed specifically for real estate investors, we are the one-stop-shop for all of your insurance needs. Request a Proposal Back to Products Overview --- - Published: 2021-03-11 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/pm-errors-and-omissions-coverage/ Errors & Omissions coverage for self-managed investment propertiesIf you are a real estate investor who self-manages your properties, you may be at risk of liability claims due to inadequate work or negligent actions while performing property management duties. National Real Estate Insurance Group offers Property Management E&O coverage to help protect you in the event of such claims. You can purchase this coverage as part of your property and general liability package or as a standalone policy. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your proposal and help you choose the best coverage for your specific situation. Start a proposal request and ask to include Property Management Errors & Omissions(PMEO) coverage or contact your CSA today! What is covered? Property Management Errors & Omissions coverage is Professional Liability coverage to assist in situations where a tenant alleges that the property manager was negligent or failed to perform duties as promised in the lease. Coverage includes: $1,000,000 limit of liability for exposures on the residence premises due to property management activities not covered by premises liability $25,000 sublimit for tenant discrimination (this coverage can apply to Fair Housing Laws) Legal defense costs (including attorney fees, settlements, court costs, etc. ) within your coverage limit Coverage may extend to errors and contract performance disputes This policy is subject to a $2,000 deductible. What is excluded? Coverage does not extend to or include: Properties managed by anyone who is not the owner of the residence Properties in Arkansas, Illinois, Indiana, Maine, New York, Washington & Wyoming Property owners who have their own property management business and/or manage properties for other owners General Contractors operations Crime coverage Wrongful Eviction Business liability coverage for an office space Please be aware that this coverage is offered through program participation. All program participants will share an aggregate limit of $5 million per policy period (1 year). Contact your agent for more information. Request a Proposal Where is PMEO coverage available? Coverage is available in the 42 states highlighted in green. Who is eligible for this coverage? Real estate investors or landlords who manage their own properties without the assistance of a professional property management company or hired individual, on properties in the 43 states plus DC where this coverage is available. What activities are considered Property Management? Setting rent rates and collecting rent Advertising vacancies, screening and placing tenants Paying bills and managing budgets Property maintenance Resolving tenant complaints and enforcing lease requirements How much does Property Management E&O insurance cost? The cost of Errors and Omissions coverage for self-managed properties is $2 per unit per month plus applicable taxes and fees. Coverage should be purchased on each property you self-manage. Because of our monthly reporting form, you can pay for coverage monthly, never paying for more than you need. Why choose us for Property Management E&O coverage? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage are underwritten by AM Best “A-” or better rated carriers Request a PM E&O ProposalAdd more coverage to Property Management Errors and Omissions insuranceNational Real Estate Insurance Group has property and liability insurance solutions to accommodate just about any type of investment properties. After you request a proposal, an agent will contact you to discuss the best coverages for your business. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Liability Insurance More Products Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about insurance for your investment properties? Read one of our articles or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2026-01-09T17:29:08+00:00New Year, Smarter Rentals: Safety, Leases, and Landlord Processes to Review NowBy MacKenzie Coder|2026-01-09T17:29:08+00:00January 9th, 2026|Summary January is a good time for landlords to reassess how their rentals are managed. Reviewing tenant communication, lease language, maintenance processes, BreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered MacKenzie Coder2025-12-08T21:33:34+00:00Unique Insurance Challenges for Log Cabin RentalsBy MacKenzie Coder|2025-12-08T21:33:34+00:00December 8th, 2025|Summary Log cabins are insurable, but their natural materials, remote locations, and higher exposure to fire, moisture, and maintenance issues MacKenzie Coder2025-12-23T21:05:17+00:00Landlord Checklist: Leasing Your First Rental PropertyBy MacKenzie Coder|2025-12-23T21:05:17+00:00December 8th, 2025|Leasing your first rental property can feel overwhelming, but the right preparation makes all the difference. Use this checklist to ensure your property --- - Published: 2021-03-08 - Modified: 2025-10-24 - URL: https://nreig.com/products-overview/ Insurance products for real estate investors NREIG aims to be the one stop shop for real estate investors' insurance needs. We offer the following products: REInsurePro Our Residential Investment Property Program Learn more about the Program The largest program in the country for real estate investment properties from single family homes up to 20 unit multifamily locations, including condos, mobile homes and vacation rentals. Whether tenant-occupied, vacant or under renovation, our month-to-month program simplifies your property portfolio of any size onto one schedule and bill. The program features flexible options for included coverage, plus you can customize your insurance package with a suite of optional standalone ancillary products. Program Highlights Basic and Special form coverage optionsReplacement Cost coverage begins when insuring at or above $120 per square footMinimum of $75 per square foot of coverage with no co-insurance penaltyLiability limits start at $1 mil per occurrence/$2 mil annual aggregateRequest a Proposal Customize your insurance package in our Residential Investment Property program with these ancillary products Flood Insurance For damage by rising water from external sources. Learn More Earth Movement Coverage for earthquake shock and sinkhole losses. Learn More Tenant Protector Plan Coverage for tenant-caused negligent losses. Learn More Terrorism and Political Violence Coverage for damage caused by terrorist acts. Learn More Service Lines For damage to exterior service lines. Learn More Property Management Errors & Omissions Professional Liability for self-managed property owners. Learn More Equipment Breakdown Coverage for losses caused by failure of equipment. Learn More Request a Program Proposal Other Specialty Programs These products and programs are available on separate annual policies through NREIG or our partners. Tattoo and Piercing Shops Comprehensive coverage for tattoo and piercing shop owners and independent contractor artists. Learn More USCCASelf-Defense USCCA membership that offers legal protection, self-defense training, and educational resources. Learn More Products For Your Tenant As a landlord, it can be as important to ensure your tenant has appropriate insurance as yourself. Your tenant’s insurance can protect your interest as well as their own, and your tenant’s financial security maintains their ability to continue timely rent payments. Through a strategic partnership, NREIG offers K9Guard for your tenants. K9Guard Canine Liability Liability coverage for injury caused by the tenant's dog on the rented premises. Learn More --- - Published: 2021-02-05 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/canine-liability-coverage/ K9Guard coverage for tenantsIf you are a real estate investor with tenant-occupied properties, you may be at risk of liability claims for injuries caused by your tenant's dog. For this reason, you might consider suggesting, or requiring, your tenants with dogs to carry a Canine Liability policy. National Real Estate Insurance Group offers K9Guard to help protect your tenant (and you) in the event of such claims. Renters can purchase this coverage in just a few minutes! Click HereWhat is covered? K9Guard Canine Liability provides the following coverages: Choice of $10,000, $25,000, $50,000, or $100,000 limit of liability for bodily injury to a third party due to an act by a covered dog Subject to a deductible of $2,500 $1,000 limit of liability for damage to property owned by a third party that occurs on the residence premises as a result of activity of a covered dog ($2,000 policy aggregate) Subject to a deductible of $250 Defense to the insured against any claim or suit seeking damages for the bodily injury or property damage listed above including court costs and judgements (with counsel chosen by the insurance carrier). What is excluded? This policy does not extend coverage for the following: Injury or property damage caused by a canine owned by the insured, but not listed on the policy schedule Losses occurring off the rented premises Property damage to the rented premises by the covered dog Injury to the insured by their covered dog Injury to any dog (including the covered dog) Injury or property damage caused by a canine that is banned or restricted by local regulation Not a complete list, see policy for exclusions. Get Started HereDownload a flyer to share with your tenants here! K9Guard is offered by NREIG in partnership with InsureMyK9 and Amelia Underwriting. When you click the link to get started, you will be taken to a third party website in a new window. Where is coverage available? Coverage is available in the 37 states highlighted in green. If I have canine liability coverage on my premises liability policy, do I need my tenants to have this coverage? If you carry your premises liability through NREIG's Program, your policy does have a sublimit for canine liability. When your tenant carries K9Guard Canine Liability insurance, it acts as primary coverage in the event of an incident as a result of their dog which can help insulate your premises liability policy from cost increases as a result of poor claims history. If the claim exceeds the limits of the tenants' policy, your premises liability can step in as additional cover. How much does K9Guard cost? K9Guard is an annual policy and the cost is dependent on the limit of liability chosen as well as how many dogs are listed on the schedule (a maximum of 4 are allowed on one policy) and their breed(s). Breeds considered "vicious" (Category A) are rated differently. A list of Category A dogs can be found here. A sample cost for non-vicious breed at a $10,000 limit of liability is $110 per year. Are any dogs excluded from coverage? No more than two intact (not spayed or neutered) Category A dogs can be scheduled on one policy. If a dog has been involved in a previous incident, is an active Policy dog, or hunting dog, the tenants application may require additional underwriting review. Get StartedCategory "A" Breeds Akita American Staffordshire Terrier Belgian Malinois Boxer Bulldog Cane Corso Chow Chow Doberman Dogo Argentio German Shepherd Great Dane Giant Schnauzer Husky Malamute Mastiff Neapolitan Mastiff Ovtcharka Pit Bull Terrier Presa Canario (Bullmastiff) Rhodesian Ridgeback Rottweiler Saint Bernard Wolf Hybrid Check out what NREIG has to offer for real estate investorsNational Real Estate Insurance Group has property and liability insurance solutions to accommodate just about any type of investment properties. After you request a proposal, an agent will contact you to discuss the best coverages for your business. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Liability Insurance More Products --- - Published: 2020-10-27 - Modified: 2025-06-26 - URL: https://nreig.com/retail-agent-program-2/ Our Retail Agent Program Licensed, independent agents can gain access to the largest Insurance Program for their real estate investor clients through REInsurePro, by National Real Estate Insurance Group. Partner Now Partner with the industry leader If you are a licensed insurance agent struggling to find coverage for your real estate investor clients, REInsurePro might be the right fit for you! REInsurePro is the same Program with flexible coverage options backed by industry-leading carriers, but branded just for independent agents, with NREIG acting as the Program Manager. Click the button below to learn more. Then fill out the questionnaire and a representative will be in touch to discuss the Program further. Partner Now Monthly reporting Insure a varied portfolio on one monthly schedule. Seamless occupancy changes without cancelling and rewriting coverage. Recurringrevenue Monthly billing means you earn commission every month. And no minimum-earned premiums means no need to refund commissions. Technology platform Appointed agents gain access to our state-of-the-art technology platform where you can propose, bind and service your clients' investment portfolios. Join the Retail Agent Program Start earning commission today. Partner Now --- - Published: 2020-08-25 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/equipment-breakdown-coverage/ Equipment Breakdown coverage for investment propertiesOur Equipment Breakdown insurance covers the physical and financial damage that can result from mechanical or electrical breakdown of many types of equipment at your investment property. National Real Estate Insurance Group offers Equipment Breakdown coverage to help protect your properties that is among the broadest in the industry, extending coverage to many types of equipment that others exclude. Equipment Breakdown insurance can be purchased as a standalone policy or as an add-on to your property and liability coverage. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get Equipment Breakdown coverage today! What does Equipment Breakdown insurance cover? Equipment Breakdown coverage helps protect your properties from damage caused by accidental failure of equipment on the premises. Some of the coverages include: Property Damage Off Premises Property Damage Business Income Extra Expense Data Restoration Green Coverage Mold Environmental, Safety and Efficiency Improvements Newly Acquired Locations Demolition Hazardous Substances Service Interruptions Public Relations Ordinance or Law * Please note that this coverage is for sudden and accidental damage and does not extend to wear and tear or deferred maintenance of equipment. Request a Proposal What equipment is covered under Equipment Breakdown insurance? Equipment failure is often excluded from property coverage. The following exposures may exist on your property and are included under NREIG's Equipment Breakdown coverage: Computer-controlled equipment, security and alarm systems, electrical panels and distribution systems, heating systems and hot water heaters, A/C equipment and refrigeration systems, emergency generators, and elevators, lifts, and hoists. How much does Equipment Breakdown insurance cost? NREIG's Equipment Breakdown insurance coverage is affordably priced, based on the value of the property. Because of our monthly reporting form, you can pay for coverage monthly, never paying for more than you need. Why choose us for Equipment Breakdown Coverage? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to Equipment Breakdown insuranceNational Real Estate Insurance Group has property and liability insurance solutions to accommodate just about any type of investment properties. After you request a proposal, an agent will contact you to discuss the best coverages for your investment. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Terrorism & Political Violence Earth Movement Liability Insurance More Products Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about Equipment Breakdown Coverage? Read one of our articles or go to our Resource Center to learn more about different insurance topics. Shawn Woedl2025-03-25T21:22:17+00:00Basic, Broad, or Special- Which Insurance Coverage Form is Right for Me? By Shawn Woedl|2025-03-25T21:22:17+00:00March 29th, 2024|If you’ve shopped for property insurance before, you may have noticed that some policies list Covered Losses as Basic, while BreAnn Stephenson2023-09-21T16:28:15+00:00What is Cash for Keys and How to Avoid Tenant Damage? By BreAnn Stephenson|2023-09-21T16:28:15+00:00August 4th, 2020|What do you do when a normal check-out scenario clearly won’t work with your current tenant? Maybe they're months behind BreAnn Stephenson2024-11-04T20:20:45+00:00Top 4 Myths About Renters InsuranceBy BreAnn Stephenson|2024-11-04T20:20:45+00:00March 26th, 2019|Get the truth about one of the most valuable policies around. Renters' insurance is an often-forgotten coverage that is surprisingly Shawn Woedl2024-11-11T23:04:11+00:00Understanding Coinsurance on Your Investment PropertyBy Shawn Woedl|2024-11-11T23:04:11+00:00July 1st, 2017|Coinsurance is an industry-wide property provision that states the amount of coverage that must be maintained as a percentage of --- - Published: 2020-08-06 - Modified: 2025-11-12 - URL: https://nreig.com/tpp-proposal-request/ Online Form - TPP Proposal Request --- - Published: 2020-08-06 - Modified: 2025-06-26 - URL: https://nreig.com/products-overview/non-performing-notes-insurance/ Non-Performing Notes coverage protects your investmentOur Non-Performing Note coverage protects your interest while the terms of the note are being reworked or the property is being foreclosed. Uninsured or under-insured properties can hinder the borrower’s potential to repay their loan following a loss, or worse, leave you, the note-holder, responsible for repairing damages at the property. National Real Estate Insurance Group's insurance for Non-Performing Notes can provide property and liability coverage so this doesn’t happen to you. Submit property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage to protect your interests as a lender. Start a proposal request to get coverage for your Non-Performing Note today! What does Non-Performing Note Insurance cover? Non-Performing Note dwelling coverage can protect you against direct physical damage to the property. Property losses such as: Fire Lightning Windstorm and Hail Vandalism Theft and more Choose between Basic and Special form coverage when discussing options with one of our insurance agents. Non-Performing Note Liability insurancePremises Liability is needed to help protect the owner and you, as the note-holder, from claims that happen at the property. Examples include: If someone were to slip and fall on the property If the tenant sustained injuries from a carbon monoxide leak Coverage extends to pools and spas, provided they meet code Medical expenses are included Our liability insurance options start as low as $7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much Non-Performing Note Insurance coverage do I need? Insurance is afforded to you based on your interest in the property, or the outstanding note value. After you request a proposal, an agent will discuss with you how much coverage you need as everyone's situation is different. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. How much does Insurance for Non-Performing Notes cost? Insurance costs for Non-Performing Notes coverage vary. With NREIG, you can insure a property at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance. Because of our monthly reporting form, you can pay for coverage monthly while you need it, with no minimum earned premiums or long term commitments. Why choose us for Non-Performing Note Insurance? Ease of Use Tailor your coverage to meet the needs of your creative investment strategies Monthly Payments Acquire and pay for coverage monthly as you need it Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to protect your interestsNational Real Estate Insurance Group has one of the most comprehensive coverage options in the industry. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from flood to terrorism to additional liability limit options. Earth Movement Terrorism and Political Violence Equipment Breakdown Tenant Protector Plan Flood Insurance Service Line Coverage Ordinance or Law More Products Manage your Non-Performing Note Insurance with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about investment property insurance? Read one of our articles about Lender-Placed Insurance or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2025-05-14T14:16:38+00:00What is Premises Liability? By MacKenzie Coder|2025-05-14T14:16:38+00:00February 25th, 2025|As a real estate investor, it is your duty to maintain your property and keep it in a safe condition Insured Investors2025-05-14T14:21:32+00:00Understanding Liability Coverages for InvestorsBy Insured Investors|2025-05-14T14:21:32+00:00November 19th, 2024|Welcome to today's episode where we're diving into a crucial, yet often overlooked topic for real estate investors, liability insurance. BreAnn Stephenson2023-02-27T18:55:50+00:00Is It Covered? Liability for Non-Covered ItemsBy BreAnn Stephenson|2023-02-27T18:55:50+00:00August 4th, 2022|For the most part, if an item is excluded from the Property Coverage on your property, it is likely not BreAnn Stephenson2024-08-20T21:05:22+00:00Is It Covered? Dog & Animal LimitationsBy BreAnn Stephenson|2024-08-20T21:05:22+00:00April 27th, 2022| As an investor, your Property Coverage protects against damage that happens to your investment property itself (i. e. the physical --- - Published: 2020-08-04 - Modified: 2024-11-19 - URL: https://nreig.com/am-best/ What does an A. M. Best rating mean? All of the insurers with which we work have an "A" or better rating from AM Best. AM Best is the only global credit rating agency focusing on the insurance industry. Best's Credit Ratings, issued through A. M. Best Rating Services, Inc. are a recognized indicator of the financial history and strength of an insurer. Carriers are assigned a Best’s Rating which attempts to measure the comprehensive position of the company or association to industry average. Best Financial Strength Ratings Rating Description A++, A+ A, A- B++, B+ Superior Excellent Very Good SECURE B, B- C++, C+ C, C- D E F S Fair Marginal Weak Poor Under Regulatory Supervision In Liquidation Suspend VULNERABLE Financial Size Categories (Reported Policyholders’ Surplus Plus Conditional Reserve Funds) Category Adjusted Policyholders Surplus I Less than 1,000,000 II 1,000,000 to 2,000,000 III 2,000,000 to 5,000,000 IV 5,000,000 to 10,000,000 V 10,000,000 to 25,000,000 VI 25,000,000 to 50,000,000 VII 50,000,000 to 100,000,000 VIII 100,000,000 to 250,000,000 IX 250,000,000 to 500,000,000 X 500,000,000 to 750,000,000 XI 750,000,000 to 1,000,000,000 XII 1,000,000,000 to 1,250,000,000 XIII 1,250,000,000 to 1,500,000,000 XIV 1,500,000,000 to 2,000,000,000 XV Greater than 2,000,000,000 --- - Published: 2020-07-14 - Modified: 2024-11-21 - URL: https://nreig.com/proposal-request/ Online Form - NREIG Main Proposal Request --- - Published: 2020-06-23 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/terrorism-insurance/ yes Terrorism Insurance coverage for investment propertiesTerrorism, and politically and ideologically-motivated violence has become more commonplace over the past two decades, leading insurance carriers to list these acts as exclusions on most property policies. National Real Estate Insurance Group is now able to provide Terrorism and Political Violence coverage as an offering in our Program. We believe this coverage is so important that it is included on all eligible properties unless it is declined by the client. Terrorism coverage can also be purchased as a standalone policy. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get Terrorism insurance today! What can Terrorism Insurance cover? Terrorism and Political Violence Insurance coverage can protect you for the following losses: Acts of Terrorism Acts of Sabotage Active Assailant Events Evacuation Expense Gross Earnings Geographic exclusionsTerrorism and Political Violence coverage is not available in: Chicago, IL New York, NY Coverage is not available for locations with more than eight units in: Boston Houston Las Vegas Los Angeles Seattle * Please note that we are not currently writing property insurance in Lousiana Request a Proposal Comparing NREIG's Terrorism and Political Violence coverage and TRIAAfter 9/11 caused $45 billion in insurance losses, many insurers sought to exclude terrorism from standard commercial policies. As a result, Congress passed the Terrorism Risk Insurance Act of 2002 (TRIA) to provide a “backstop” for insurers (with federal loss-sharing) in the event of a major terrorist act. Among other provisions, TRIA required insurers to make terrorism coverage available to their policyholders, while also outlining the requirements by which an act of terrorism would trigger coverage under TRIA. Our standalone terrorism policy differs from TRIA in a number of ways: TRIA NREIG Terrorism & Political Violence Event must be certified as an act of terrorism by the US Secretary of the Treasury Yes, there is no coverage for noncertified acts Not required Act must cause more than $5,000,000 in damage (as determined by the Treasury) Yes, no coverage is afforded unless this threshold is met Not required Premium determination Based on a percentage of your property premium Fixed cost per location How much does Terrorism coverage cost? With National Real Estate Insurance Group Terrorism and Political Violence coverage costs as little as $1 per month per location. Because of our monthly reporting form, you can pay for coverage monthly, therefore never overpaying for Terrorism Insurance. Why choose us for Terrorism insurance? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage are underwritten by AM Best “A-” or better rated carriers Request a Proposal Coverage options with National Real Estate Insurance GroupIf you don’t already insure your investment properties with National Real Estate Insurance Group, we can protect just about any type of investment properties. Please request a proposal if you would like property and liability coverage and one of our licensed insurance agents will contact you to discuss your custom proposal options. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Ordinance or Law Coverage Mobile Home Insurance Liability Insurance More Products Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about Terrorism and Political Violence Insurance? Read one of our articles or go to our Resource Center to learn more about different insurance topics. Insured Investors2025-05-14T14:20:35+00:00Strategies to Reduce Your Insurance Premium By Insured Investors|2025-05-14T14:20:35+00:00December 12th, 2024|In today’s episode, we are diving into a topic that could save you hundreds, maybe even thousands, each year: how Shawn Woedl2025-03-25T21:22:17+00:00Basic, Broad, or Special- Which Insurance Coverage Form is Right for Me? By Shawn Woedl|2025-03-25T21:22:17+00:00March 29th, 2024|If you’ve shopped for property insurance before, you may have noticed that some policies list Covered Losses as Basic, while Shawn Woedl2024-11-11T23:04:11+00:00Understanding Coinsurance on Your Investment PropertyBy Shawn Woedl|2024-11-11T23:04:11+00:00July 1st, 2017|Coinsurance is an industry-wide property provision that states the amount of coverage that must be maintained as a percentage of Tim Norris2022-12-29T21:05:02+00:00How to Insure Your Investment PropertiesBy Tim Norris|2022-12-29T21:05:02+00:00May 3rd, 2017|If one of your single-family properties caught fire last night, are you certain it's insured properly? If a spring storm --- - Published: 2020-06-05 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/ordinance-or-law-coverage/ yes Ordinance or Law coverage for investment propertiesMany lenders are beginning to require Ordinance or Law coverage on residential rental properties. Ordinance or Law provides additional coverage following a loss if it is determined that your building does not meet city or county building code requirements and needs to be upgraded before you can reoccupy the location. National Real Estate Insurance Group offers property insurance policies that include Ordinance or Law coverage to help cover these additional expenses. Ordinance or Law insurance can be purchased as a standalone policy or as an add-on to your property and liability coverage. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your specific situation. Start a proposal request today! What can Ordinance or Law Insurance cover? Ordinance or Law Coverage is often referred to as “bring up to code” coverage because it offers additional reimbursement needed due to enforcement of local ordinances or laws regulating construction and repair of damaged buildings. Imagine you have a partial loss on two units of a fourplex. The county inspection determines the building does not have hard-wired smoke detectors to meet current code, requiring updates to all four units. Ordinance or Law coverage can step in to help cover these updates to the undamaged portion of the building, expenses if the entire building needs to be demolished and/or increased cost of construction if the property limit is not sufficient to meet code standards. Request a Proposal Why choose us for Ordinance or Law Coverage? Ease of Use Insure your entire investment portfolio on one monthly report Pay Monthly Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to protect your investmentIf you don't already insure your properties with National Real Estate Insurance Group, we have insurance solutions to accommodate any type of investment property. After you request a proposal, an agent will contact you to discuss your options. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance New Construction Insurance Vacation Rental Insurance Vacant Land Liability Liability Insurance More Products Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Request a Proposal Want to learn more about insuring your investment properties? Read one of our articles or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2025-10-17T18:55:14+00:00NREIG Offers Insurance Solutions for Every Type of Investment PropertyBy MacKenzie Coder|2025-10-17T18:55:14+00:00July 8th, 2024|Protecting your investments with the right insurance coverage is crucial. At NREIG, we offer a variety of insurance options tailored Shawn Woedl2025-03-25T21:22:17+00:00Basic, Broad, or Special- Which Insurance Coverage Form is Right for Me? By Shawn Woedl|2025-03-25T21:22:17+00:00March 29th, 2024|If you’ve shopped for property insurance before, you may have noticed that some policies list Covered Losses as Basic, while MacKenzie Coder2025-10-24T14:35:30+00:00How to Insure Your Renovation PropertyBy MacKenzie Coder|2025-10-24T14:35:30+00:00October 4th, 2023| Whether you’re new to property flipping or a seasoned veteran, renovating a home comes with a unique set of BreAnn Stephenson2023-09-21T16:28:15+00:00What is Cash for Keys and How to Avoid Tenant Damage? By BreAnn Stephenson|2023-09-21T16:28:15+00:00August 4th, 2020|What do you do when a normal check-out scenario clearly won’t work with your current tenant? Maybe they're months behind --- - Published: 2020-06-04 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/rental-property-insurance/ Rental Property Insurance for landlordsWhen renting out an investment property, it is important to carry insurance coverage that is specifically designed for a tenant-occupied property. Whether you have a single family rental or a 20-unit apartment building, National Real Estate Insurance Group offers custom property and liability packages designed to protect your rental property and your investment. Submit your property information using our online proposal request, and receive a proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get your rental property insurance solutions today! What does rental property insurance cover? When renting a property to someone else, dwelling coverage can protect your property against direct physical damage to the property, such as: Fire Lightning Windstorm and Hail Vandalism Theft Named Windstorm and more Choose between Basic and Special form coverage when discussing insurance options with your agent. Liability insurance for rental propertiesPremises Liability coverage is critical in protecting you, the investor, from claims that happen at your investment property. Examples may include: If someone were to slip and fall on your property If one of your tenant's dogs were to bite someone on your property If your tenant suffers medical issues due to a carbon monoxide leak Coverage extends to pools and spas, provided they meet code Medical expenses are included Our liability insurance options start as low as $7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much rental property insurance coverage do I need? Rental property insurance provides coverage in an event of a loss at the property. The amount of coverage will depend upon requirements from your lender, your exit strategy in the event of a total loss, and your appetite for risk. After you request a proposal, an agent will discuss with you how much coverage you need as each situation is unique. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. What deductible is right for a property you are renting to tenants? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. How much does rental property insurance cost? Insurance costs vary greatly based on coverages you chose to carry, deductible, where your property is located, and the size of your portfolio. With us, you can insure your tenant-occupied property at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance and only $120 per square foot for Replacement Cost coverage. Because of our monthly reporting form, you can pay for coverage monthly, never overpaying for rental property insurance. Why choose us when insuring your rental property? Ease of Use Insure your entire investment portfolio on one monthly schedule. Pay Monthly Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide coverage Insure your investment portfolio in one place with coverage across 48 states Request a ProposalAdd more coverage to your rental property and liability insuranceWith National Real Estate Insurance Group, you can add extra coverage options to your log cabin insurance. After you request a proposal, an agent will contact you to discuss your proposal and coverage options to limit your exposure. We have products ranging from flood to equipment breakdown to additional liability limit options. Loss of Rents Earth Movement Equipment Breakdown Service Line Coverage Tenant Protector Plan Flood Insurance Terrorism and Political Violence Other Structures Property Management E&O Ordinance or Law More Products Manage your rental property insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work one-on-one with a Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about rental property insurance? Read one of our articles about insuring tenant-occupied properties or go to our Resource Center to learn more about different insurance topics. BreAnn Stephenson2023-09-21T16:28:15+00:00What is Cash for Keys and How to Avoid Tenant Damage? By BreAnn Stephenson|2023-09-21T16:28:15+00:00August 4th, 2020|What do you do when a normal check-out scenario clearly won’t work with your current tenant? Maybe they're months behind BreAnn Stephenson2024-11-04T20:20:45+00:00Top 4 Myths About Renters InsuranceBy BreAnn Stephenson|2024-11-04T20:20:45+00:00March 26th, 2019|Get the truth about one of the most valuable policies around. Renters' insurance is an often-forgotten coverage that is... --- - Published: 2020-06-02 - Modified: 2025-06-18 - URL: https://nreig.com/about-us/ About National Real Estate Insurance GroupSince 2008, National Real Estate Insurance Group (NREIG) has been providing custom insurance products for real estate investors. Our clients range from individual property investors to large-scale investors, turnkey operators, lenders, property managers, landlords and rehabbers. We can provide solutions for nearly every type of investment property - and it's all we do. National Real Estate Insurance Group was formed when two insurance agencies - one focusing on landlords and one focusing on rehabbers - came together to service the real estate industry. We have grown with the industry and offer coverage for single-family to mixed-use commercial properties. Our primary goal is to do right by our clients and be the one-stop shop for all of your investment insurance needs. Our carriersChoosing an insurance company with good financial strength and ability to pay out on insurance policies is crucial to your business. Get peace of mind knowing that your properties are insured with the industry-leading carriers that are AM Best "A-" or better rated. AM Best is the only global credit rating agency focusing on the insurance industry. View the rating system or go to AM Best’s website to learn more. Why choose usEase of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage are underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Coverage available in across the nation Request a ProposalNeed to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. --- - Published: 2020-05-14 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/flood-insurance/ Flood Insurance for investment propertiesFlood Insurance might be an important consideration depending on the location of your investment properties. Flood insurance is almost always excluded on all policy property forms and oftentimes needs to be purchased separately. Whether you are required to carry this coverage by your lender or just want additional protection for your investment properties, National Real Estate Insurance Group has the flood coverage you need. NREIG's flood insurance can be purchased as a standalone policy or as an add-on to your property and liability coverage. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your business. Start a proposal request to get Flood Insurance today! What does Flood Insurance cover? Flood may occur when water from natural sources such as rivers and lakes breach their banks during heavy rains or when the ground is over-saturated with water and causes the excess to seep through foundations or other vulnerable parts of the structure. Federal Emergency Management Agency (FEMA) defines a flood as a “general and temporary condition of partial or complete inundation of two or more acres and two or more properties of normally dry land. ” You can find more information on the FEMA website. What does not constitute a flood? Water Damage - “sudden and accidental” burst or overflow of water. Examples include a pipe bursting or an accidental overflow of a bathtub. Named Storm - be sure Named Storm coverage is included in your property coverage for protection from wind damage in the event of a hurricane or tropical storm named by the National Weather Service. However, it is important to note that flooding resulting from a storm surge triggered by a Named Storm would only be covered with a Flood policy. Sewer and drain back-up is another common exclusion. This coverage can be added with our Tenant Protector Plan ®. Learn more about the differences between these here. Request a Proposal Why should I choose NREIG for Flood Insurance? A Flood Insurance policy may be written through National Flood Insurance Program (NFIP) or a private insurer, however, you are typically subject to a waiting period of up to 30 days. With National Real Estate Insurance Group, you can purchase flood insurance with no waiting periods. How much can this type of damage cost? Floods are especially costly because of the complexity and severity of the catastrophic event itself. Damages may not be limited to that caused by the water entering the home, but often extends to issues with the foundation or mold. How much does Flood Insurance cost? The cost of Flood Insurance depends on the flood zone where the property is located. After you request a proposal, an insurance agent will discuss your flood exposure and help you determine if Flood Insurance is needed for your investment property. Add property and liability coverageNational Real Estate Insurance Group offers one of the most comprehensive insurance solutions for investment properties. We have products that can accommodate any type of investment properties. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Liability Insurance Condo Insurance Vacation Rental Insurance More Products Manage your Flood Insurance coverage with easeMake coverage changes and pay for coverage as-you-go, monthly. Our clients can choose to manage their account online 24/7 or with a dedicated Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a ProposalNeed to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about Flood Insurance? Read one of our articles about flood insurance or go to our Resource Center to learn more. Shawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real BreAnn Stephenson2023-03-29T13:09:02+00:00Is It Covered? FloodBy BreAnn Stephenson|2023-03-29T13:09:02+00:00August 9th, 2022|The question is always, “When is it a flood? ” Because we deem various types of water events “floods” even if Julie Prewitt2025-06-17T21:15:34+00:00Three Types of Coverage Triggered by WindstormsBy Julie Prewitt|2025-06-17T21:15:34+00:00May 26th, 2022|As spring weather approaches, and with it, the chance for severe storms, now is the best time to make sure Julie Prewitt2022-10-31T21:12:37+00:00Insurance Coverages for Vacation RentalsBy Julie Prewitt|2022-10-31T21:12:37+00:00July 31st, 2019|With the growth in the vacation rental market thanks to the explosion of platforms like Airbnb and HomeAway, property owners --- - Published: 2020-05-14 - Modified: 2025-06-18 - URL: https://nreig.com/products-overview/liability-insurance/ Liability insurance for investment propertiesLiability insurance can protect your investment from third party claims that occur at your property. Even if you decide to self-insure your property exposure, you should never go without liability coverage. National Real Estate Insurance Group offers real estate investors the ability to purchase liability-only coverage for their investment properties. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your business. Start a proposal request to get liability insurance coverage today! What does liability insurance cover? Liability coverage is needed to help protect your real estate investment from claims that occur at your property. Examples include: Accidental injury on the premises Wrongful death Medical expenses if someone is injured on the property Defense costs if someone is injured on your property Available coverage limitsThe following options are available for dedicated per property limits: $1,000,000 per occurrence/$2,000,000 annual aggregate $1,000,000 per occurrence/$5,000,000 annual aggregate $2,000,000 per occurrence/$5,000,000 annual aggregate What is excluded? The following coverages are excluded from your premises liability policy. Ask your agent if you would like to purchase the following coverages separately: Products and Completed Operations Faulty Construction Workers Compensation Errors and Omissions Insurance (E&O) Request a Proposal How much does premises liability insurance cost? Whether you buy and hold, or fix and flip, you will have an increased exposure to liability claims as a real estate investor. Liability insurance provides coverage for those exposures and can protect your investment. For as low as $7 per unit, per month, you can purchase $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Higher limits are available. Can I buy liability insurance as a stand-alone option? Yes, you can purchase premises liability insurance as a stand-alone option. Because of our monthly reporting form, you can pay for coverage monthly with no minimum earned premiums. Request a proposal or call 888. 741. 8454 to discuss your liability only proposal with one of our licensed insurance professionals. Why choose us for liability insurance? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to liability insuranceYou will need property coverage if you would like to protect it against fire, lightening, windstorm, theft and other direct physical damage to the property. National Real Estate Insurance Group has coverage options to help protect all types of investment properties. Ask your agent to discuss property coverage to limit your exposure. Renovation Property Insurance Rental Property Insurance Vacation Rental Insurance New Construction Insurance Vacant Property Insurance Condo Insurance More Products Manage your liability insurance with easeMake coverage changes and pay for coverage as-you-go, monthly. Our clients can choose to manage their account online 24/7 or with a dedicated Client Service Representative. Easy Pay Set up monthly auto-pay or prepay for: 3 months 6 months One year in advance When you sell the property, get any unused cost refunded back to you. With no minimum earned premiums, you will never overpay for liability insurance. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a dedicated Client Service Representative to help manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about liability insurance? Read one of our articles about liability insurance or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2025-05-14T14:16:38+00:00What is Premises Liability? By MacKenzie Coder|2025-05-14T14:16:38+00:00February 25th, 2025|As a real estate investor, it is your duty to maintain your property and keep it in a safe condition Insured Investors2025-05-14T14:21:32+00:00Understanding Liability Coverages for InvestorsBy Insured Investors|2025-05-14T14:21:32+00:00November 19th, 2024|Welcome to today's episode where we're diving into a crucial, yet often overlooked topic for real estate investors, liability insurance. BreAnn Stephenson2023-02-27T18:55:50+00:00Is It Covered? Liability for Non-Covered ItemsBy BreAnn Stephenson|2023-02-27T18:55:50+00:00August 4th, 2022|For the most part, if an item is excluded from the Property Coverage on your property, it is likely not BreAnn Stephenson2024-08-20T21:05:22+00:00Is It Covered? Dog & Animal LimitationsBy BreAnn Stephenson|2024-08-20T21:05:22+00:00April 27th, 2022| As an investor, your Property Coverage protects against damage that happens to your investment property itself (i. e. the physical --- - Published: 2020-05-13 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/vacant-land-liability-insurance/ Vacant land liability insurance coverage you needIf you own vacant land, incidents that occur on the property can leave you exposed to liability risks. National Real Estate Insurance Group can help protect you and your investment with vacant land liability insurance. Submit your vacant land information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get your vacant land liability insurance today! What does vacant land liability insurance cover? Liability coverage is needed to help protect your real estate investment from third party claims. Just one slip and fall on your land could cost you thousands of dollars in potential liability clams. Examples of vacant land liability coverage may include: Bodily injury to a third party that happens on your vacant land Medical expenses if someone is injured on the property Defense costs if someone is injured on your vacant land Available coverage limitsThe following options are available for dedicated per property limits: $1,000,000 per occurrence/$2,000,000 annual aggregate Request a Proposal How much does vacant land liability insurance cost? Liability insurance cost for vacant land starts as low as $12 per month for $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Cost will vary depending upon the geographical location and the amount of land being insured. What if I decide to build on the land? If you choose to build on the property, just let us know and we will add new construction insurance coverage to help protect the dwelling being built. Because of our monthly reporting form, this can be done seamlessly without any interruption of coverage. Your new monthly cost will reflect new construction dwelling coverage. Examples of covered causes of loss may include fire, lightning, windstorm and hail, vandalism, and more. Why choose us when insuring your vacant land? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Manage your vacant land liability insurance with easeMake coverage changes and pay for coverage as-you-go, monthly. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about investment property insurance? Read one of our articles about liability insurance or go to our Resource Center to learn more about insuring your investment properties. Julie Prewitt2025-06-16T19:20:53+00:00Insurance for New Construction PropertiesBy Julie Prewitt|2025-06-16T19:20:53+00:00February 12th, 2020|When purchasing insurance for new construction properties, it is important to understand its unique insurance needs. Neglecting to do so Julie Prewitt2024-01-16T16:50:01+00:00Tips for Controlling Your Insurance Costs in 2020By Julie Prewitt|2024-01-16T16:50:01+00:00December 27th, 2019|Following the trends of 2017 and 2018 (which saw five of the 15 costliest catastrophes in history), 2019 continued to Shawn Woedl2021-04-26T18:45:57+00:00Understanding Umbrella PoliciesBy Shawn Woedl|2021-04-26T18:45:57+00:00October 30th, 2019|The umbrella liability policy. One of the most misunderstood concepts in insurance for real estate investors. Even among insurance professionals, Tim Norris2023-01-03T17:36:45+00:00NREIG Monthly Reporting FormBy Tim Norris|2023-01-03T17:36:45+00:00May 3rd, 2017|Designed for real estate investors, our monthly reporting form is an insurance methodology that allows our clients to change occupancy --- - Published: 2020-05-13 - Modified: 2025-06-18 - URL: https://nreig.com/products-overview/condo-insurance/ Condo Insurance for investment propertiesWhether you rent your condo out to tenants or are renovating it, walls-in condo coverage protects your unit against losses to the property that you may be responsible for under your Condo Association’s requirements. National Real Estate Insurance Group can help protect your condo and your investment. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your business. Start a proposal request to get your condo insurance solutions today! What does condo insurance cover? Dwelling coverage can protect your condo against direct physical damage to the property. We provide walls-in coverage for losses such as: Fire Lightning Windstorm and Hail Named Windstorm Theft and more Choose between Basic and Special form coverage when discussing your coverage options with your agent. We can also offer property coverage for the Condo Association’s buildings, subject to review of the bylaws. Liability insurance for condosLiability coverage is needed to help protect your real estate investment from claims that happen at your property. Examples include but not limited to: If someone were to slip and fall on your property If one of your tenant’s dogs were to bite someone on your property If your tenant suffered medical issues from a carbon monoxide leak Medical expenses are included Our liability insurance options start as low as $7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much condo insurance coverage do I need? Condo insurance provides walls-in coverage in the event of a loss in the unit. The amount of coverage may depend upon the intent of the condo (whether it is a rental or under renovation), and the requirements of your lender and/or Condo Association. After you request a proposal, an agent will discuss with you how much coverage you need as everyone's situation is different. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. What property deductible is right for a condo? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. How much does condo insurance cost? Insurance costs for condos vary greatly based on many different factors. With us, you can insure your condo at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance and $120 per square foot for Replacement Cost coverage. Because of our monthly reporting form, you can pay for coverage monthly, never overpaying for condo insurance. Why choose us for condo insurance? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to your condo insuranceWith NREIG, you can add extra coverage options to your condo insurance. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from flood to Tenant Protector Plan to additional liability limits options. Loss of Rents Ordinance or Law Property Management E&O Flood Insurance Terrorism and Political Violence Equipment Breakdown Earth Movement More Products Add the Tenant Protector PlanMost investors choose to add the Tenant Protector Plan® to their rental property insurance, which provides coverage for tenant-caused negligent losses. Tenant Protector Plan® is our cost-effective way to offer an alternative to renter’s insurance. We do this by working directly with you to secure the coverage, guaranteeing the coverage is in force when you need it. For substantially less than what a renter’s policy would cost your tenant to purchase on their own, we can include the Tenant Protector Plan® on some or all of your occupied locations. You can learn more about Tenant Protector Plan® or ask one of our agents when discussing your proposal options. Manage your condo insurance with easeMake coverage changes and pay for coverage as-you-go, monthly. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about investment property insurance? Read one of our articles about insuring tenant-occupied, renovation and vacant properties or go to our Resource Center to... --- - Published: 2020-05-13 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/lender-placed-insurance/ Lender-Placed Insurance to protect your interestsOur Lender-Placed Insurance alternative coverage protects the interest of a lender or mortgagee when the borrower's coverage has lapsed or is insufficient. Uninsured or under-insured properties can hinder the borrower’s potential to repay their loan following a loss, or worse, leave you, the lender, responsible for repairing damages at the property. National Real Estate Insurance Group's LenderGuard can help lenders place property and liability coverage so this doesn’t happen to you. Submit property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage to protect your interests as a lender. Start a proposal request to get your Lender-Placed Insurance alternative today! What does Lender-Placed Insurance cover? Lender-placed alternative dwelling coverage can protect you against direct physical damage to the property. Property losses such as: Fire Lightning Windstorm and Hail Vandalism Theft and more Choose between Basic and Special form coverage when discussing options with one of our insurance agents. Lender-Placed Liability insurancePremises Liability is needed to help protect the owner and you, as the lender, from claims that happen at the property. Examples include: If someone were to slip and fall on the property If the tenant sustained injuries from a carbon monoxide leak Coverage extends to pools and spas, provided they meet code Medical expenses are included Our liability insurance options start as low as $7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much Lender-Placed Insurance coverage do I need? Lender-Placed Insurance is afforded to you based on your interest in the property, or the outstanding loan value. After you request a proposal, an agent will discuss with you how much coverage you need as everyone's situation is different. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. How much does Lender-Placed Insurance cost? Insurance costs for Lender-Placed coverage vary. With NREIG you can insure a property at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance. Because of our monthly reporting form, you can pay for coverage monthly with no minimum earned premiums or long-term commitments. Why choose us for Lender-Placed Insurance? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to protect your interestsNational Real Estate Insurance Group has one of the most comprehensive coverage options in the industry. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from flood to earth movement to additional liability limit options. Earth Movement Terrorism & Political Violence Equipment Breakdown Flood Insurance Service Line Coverage Ordinance or Law More Products Design your custom insurance requirementsAs a lender, it's important to provide your borrowers with comprehensive requirements for the insurance coverage they must carry before funding their loan. Failure to do so, can result in your borrower defaulting on a loan should they have a loss occur for which they weren't covered. If you would like to design your custom insurance requirements with the help of our licensed insurance professionals, please email info@nreig. com. Manage your Lender-Placed Insurance with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about investment property insurance? Read one of our articles below or go to our Resource Center to learn more about insuring investment properties. BreAnn Stephenson2023-06-26T18:03:13+00:00Is It Covered? Contractors’ Injuries & WorkmanshipBy BreAnn Stephenson|2023-06-26T18:03:13+00:00June 18th, 2022|Though your insurance policy protects you from a variety of perils, contractor faulty workmanship or injury on the job site BreAnn Stephenson2023-09-21T16:28:15+00:00What is Cash for Keys and How to Avoid Tenant Damage? By BreAnn Stephenson|2023-09-21T16:28:15+00:00August 4th, 2020|What do you do when a normal check-out scenario clearly won’t work with your current tenant? Maybe they're months behind BreAnn Stephenson2024-04-11T15:48:12+00:008 Great Ways to Protect Vacant & Renovation PropertiesBy BreAnn Stephenson|2024-04-11T15:48:12+00:00August 29th, 2019|When we look at claims data, we see that many of the properties subject to break-ins, thefts, and vandalism are BreAnn Stephenson2024-11-04T20:20:45+00:00Top 4 Myths About Renters InsuranceBy BreAnn Stephenson|2024-11-04T20:20:45+00:00March 26th, 2019|Get the truth about one of the most valuable policies around. Renters' insurance is an often-forgotten coverage that is surprisingly --- - Published: 2020-05-12 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/mobile-home-insurance/ Mobile home insurance for real estate investorsMobile home insurance is a must-have when you rent out your mobile or manufactured home to tenants. National Real Estate Insurance Group can help protect your mobile home and your real estate investment. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your business. Start a proposal request to get your mobile home insurance solutions today! What does mobile home insurance cover? When renting out a mobile home to tenants, dwelling coverage can protect your mobile home against direct physical damage to the property, such as: Fire Lightning Windstorm and Hail Riot or Civil Commotion Vandalism and more You can follow this link to learn more about covered causes of loss. Mobile homes are not eligible to obtain Special Form or Named Windstorm coverage in our program. Liability insurance for mobile rental propertiesPremises Liability coverage is critical in protecting you, the investor, from claims that happen at your investment property. Examples may include: If someone were to slip and fall on your property If one of your tenant's dogs were to bite someone on your property If your tenant suffers medical issues from a carbon monoxide leak Medical expenses are included Our liability insurance options start as low as $7$7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much mobile home insurance coverage do I need? Mobile home insurance provides coverage in an event of a loss at the property. Keep in mind how rapidly mobile homes depreciate in value when deciding on a coverage amount. It is easy to over-insure and therefore, overpay. National Real Estate Insurance Group lets you choose coverage amount (at a minimum of $75 of coverage per square foot), but is limited to $119. 99 per square foot. After you request a proposal, an agent will discuss with you how much coverage you need as everyone's situation is different. What deductible is right for a mobile home? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. How much does mobile home insurance cost? Insurance costs for molbile homes can vary greatly based on many different factors, including the amount of coverage needed. In our program, you can insure your tenant-occupied mobile property at $75 per square foot to obtain Actual Cash Value coverage. Mobile homes are not eligible for Replacement Cost coverage in our program. Because of our monthly reporting form, you can pay for coverage monthly, never overpaying for mobile home insurance. Why choose us when insuring your mobile home? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to your mobile home insuranceWith NREIG, you can add extra coverage options to your mobile home insurance. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from Tenant Protector Plan to earth movement to additional liability limit options. Other Structures Loss of Rents Property Management E&O Service Line Coverage Terrorism and Political Violence Tenant Protector Plan Equipment Breakdown Flood Insurance Ordinance or Law More Products Manage your mobile home insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about rental property insurance? Read one of our articles about insuring a tenant-occupied mobile home or go to our Resource Center to learn more about different insurance topics. BreAnn Stephenson2023-09-21T16:28:15+00:00What is Cash for Keys and How to Avoid Tenant Damage? By BreAnn Stephenson|2023-09-21T16:28:15+00:00August 4th, 2020|What do you do when a normal check-out scenario clearly won’t work with your current tenant? Maybe they're months behind BreAnn Stephenson2024-11-04T20:20:45+00:00Top 4 Myths About Renters InsuranceBy BreAnn Stephenson|2024-11-04T20:20:45+00:00March 26th, 2019|Get the truth about one of the most valuable policies around. Renters' insurance is an often-forgotten coverage that is surprisingly --- - Published: 2020-05-11 - Modified: 2025-08-19 - URL: https://nreig.com/products-overview/earth-movement/ Earth Movement coverage for investment propertiesAn Earth Movement supplemental policy provides additional protection for sinkhole and earthquake shock perils often excluded on property insurance for your real estate investment properties. National Real Estate Insurance Group offers Earth Movement coverage to help protect your properties. Earth Movement insurance can be purchased as a standalone policy or as an add-on to your property and liability coverage. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get Earth Movement coverage today! What does Earth Movement insurance cover? Earth Movement coverage helps protect your properties from damage caused by an earthquake, a sudden and violent shaking of the ground resulting from movement of the earth’s crust. What makes this product especially beneficial is that it also provides sinkhole coverage, naturally occurring depression in the surface of the ground caused by the settlement or sudden collapse of land. Earth Movement coverage is available in 45 states. Exceptions include Alaska, California, Florida, Hawaii and Illinois. Request a Proposal How much does Earth Movement insurance cost? Insurance costs for Earth Movement coverage can start as low as $10 per month, per property and vary based on the value and location of the property. Because of our monthly reporting form, you can pay for coverage monthly, never paying for more than you need. Why choose us for Earth Movement Coverage? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Request a ProposalAdd more coverage to Earth Movement insuranceNational Real Estate Insurance Group has property and liability insurance solutions to accommodate just about any type of investment properties. After you request a proposal, an agent will contact you to discuss the best coverages for your business. Rental Property Insurance Vacant Property Insurance Renovation Property Insurance Condo Insurance Vacation Rental Insurance Ordinance or Law Coverage Liability Insurance More Products Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about Earth Movement Coverage? Read one of our articles or go to our Resource Center to learn more about different insurance topics. Insured Investors2025-05-14T14:36:38+00:00The Difference Between Flood, Water Damage, and Sewer Backup By Insured Investors|2025-05-14T14:36:38+00:00May 15th, 2024|You may be surprised to learn that your definition of flood and your insurance company's definition may differ. And we Shawn Woedl2025-03-25T21:22:17+00:00Basic, Broad, or Special- Which Insurance Coverage Form is Right for Me? By Shawn Woedl|2025-03-25T21:22:17+00:00March 29th, 2024|If you’ve shopped for property insurance before, you may have noticed that some policies list Covered Losses as Basic, while BreAnn Stephenson2023-03-29T13:09:02+00:00Is It Covered? FloodBy BreAnn Stephenson|2023-03-29T13:09:02+00:00August 9th, 2022|The question is always, “When is it a flood? ” Because we deem various types of water events “floods” even if Julie Prewitt2025-06-17T21:15:34+00:00Three Types of Coverage Triggered by WindstormsBy Julie Prewitt|2025-06-17T21:15:34+00:00May 26th, 2022|As spring weather approaches, and with it, the chance for severe storms, now is the best time to make sure --- - Published: 2020-05-11 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/vacation-rental-insurance/ Vacation Rental Insurance for short-term rentalsVacation Rental insurance is needed when renting out your property on a short-term basis. It can limit your exposure to losses that can happen at the property during their stay and in-between tenants. National Real Estate Insurance Group has property and liability insurance solutions to help protect your property and your real estate investment if you have a vacation rental. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your business. Start a proposal request to get your vacation rental property insurance today! What does vacation rental property insurance cover? If you have a vacation rental, dwelling coverage can protect your property against direct physical damage to the property, such as: Fire Windstorm and Hail Vandalism Named Windstorm Contents coverage for your furnishings and more Choose between Basic and Special form coverage, when discussing insurance options with your agent. Liability insurance for vacation rental propertiesPremises Liability coverage is critical in protecting you, the investor, from claims that happen at your investment property. Examples may include: If someone were to slip and fall on your property If one of your tenant's dogs were to bite someone on your property If your tenant suffers medical issues due to a carbon monoxide leak Coverage extends to pools and spas, provided they meet code Medical expenses are included Our liability insurance options start as low as $7 per month, per property and come with $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much vacation rental property insurance coverage do I need? Vacation rental property insurance provides coverage in an event of a loss at the property. The amount of coverage will depend upon requirements from your lending institution, your exit strategy in the event of a total loss, and your appetite for risk. After you request a proposal, an agent will discuss with you how much coverage you need as each situation is unique. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. What deductible is right for vacation rentals? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. How much does vacation rental insurance cost? Insurance costs for vacation rentals vary greatly based on coverages you choose to carry, deductible, where your property is located, and the size of your portfolio. With us, you can insure your vacation rental property at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance and $120 per square foot for Replacement Cost coverage. Can you insure a vacation rental that I also use? As long as the location is used as an investment property more than 50% of the time, it is eligible for the program. If you are the property owner and use the property (or it is not used as a rental) 50% of the year or more, the location is ineligible. Why choose us when insuring your vacation rental? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to your vacation rental insuranceWith NREIG, you can add extra coverage options to your vacation rental insurance coverage. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from flood to property management errors & omissions to additional liability limit options. Loss of Rents Other Structures Contents coverage Flood Insurance Earth Movement Terrorism and Political Violence Equipment Breakdown Property Management E&O Service Lines More Products Manage your vacation rental insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about insurance for your vacation rental? Read one of our articles about vacation rental insurance or go to our Resource Center to learn more about different insurance topics. Shawn Woedl2025-08-18T18:01:31+00:00NREIG’s Tenant Protector Plan®–A Renters Insurance Alternative for LandlordsBy Shawn Woedl|2025-08-18T18:01:31+00:00July... --- - Published: 2020-05-11 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/vacant-property-insurance/ Vacant Property Insurance coverage you needVacant property insurance is a must-have when you have a property that is listed for sale or in-between tenants. National Real Estate Insurance Group can help protect your vacant property and your real estate investment. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get your vacant property insurance solutions today! What does vacant property insurance cover? When insuring a vacant property, dwelling coverage can protect your property against direct physical damage to the property, such as: Fire Lightning Windstorm and Hail Vandalism Named Windstorm and more Choose between Basic and Special form coverage when discussing insurance options with your agent. Liability insurance for vacant propertiesPremises Liability coverage is critical in protecting you, the investor, from claims that happen at your investment property. Examples may include: If someone were to slip and fall on your property If a dog bite were to occur on your property Coverage extends to pools and spas, provided they meet code Medical expenses are included Our liability insurance options start as low as $7 per month, per property for $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. Request a Proposal How much vacant property insurance coverage do I need? Vacant property insurance provides coverage in an event of a loss at the property while it's vacant. The amount of coverage will depend upon requirements from your lending institution, your exit strategy in the event of a total loss, and your appetite for risk. After you request a proposal, an agent will discuss with you how much coverage you need as each situation is unique. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. How much does vacant property insurance cost? Insurance costs for vacant properties vary greatly based on coverages you chose to carry, deductible, where your property is located, and the size of your portfolio. With us, you can insure your tenant-occupied property at $75 per square foot to obtain Actual Cash Value coverage with no coinsurance and $120 per square foot for Replacement Cost coverage. Because of our monthly reporting form, you can pay for coverage monthly, never overpaying for vacant property insurance. Do I need to cancel coverage when I get tenants? If you occupy the property with tenants, let us know and we can continue coverage with no interruptions. If you sell the property, cancel coverage with no minimum earned premiums. Our monthly reporting form allows you to make changes and cancel coverage at any time. Why choose us when insuring your vacant property? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to your vacant property insuranceWith National Real Estate Insurance Group, you can add extra coverage options to your vacant property insurance. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverages to limit your exposure. We have products ranging from flood to service line to additional liability limit options. Other Structures Flood Insurance Service Line Coverage Earth Movement Terrorism and Political Violence Equipment Breakdown More Products Manage your vacant property insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about vacant property insurance? Read one of our articles about insuring vacant properties or go to our Resource Center to learn more about different insurance topics. MacKenzie Coder2025-10-17T18:55:14+00:00NREIG Offers Insurance Solutions for Every Type of Investment PropertyBy MacKenzie Coder|2025-10-17T18:55:14+00:00July 8th, 2024|Protecting your investments with the right insurance coverage is crucial. At NREIG, we offer a variety of insurance options tailored BreAnn Stephenson2023-08-07T19:57:16+00:00Vacant Property Risks – AutumnBy BreAnn Stephenson|2023-08-07T19:57:16+00:00September 26th, 2022| Autumn is a signal to start wrapping up outdoor rehab work, a time to start “battening down the hatches” BreAnn Stephenson2023-07-20T16:28:49+00:00Protect Your Vacant Property from Water Damage This WinterBy BreAnn Stephenson|2023-07-20T16:28:49+00:00February 19th, 2020|Of the three leading causes of property damage—fire, theft/vandalism, and water damage—the last one is usually the easiest to prevent. BreAnn Stephenson2024-04-11T15:48:12+00:008 Great Ways to Protect Vacant & Renovation PropertiesBy BreAnn Stephenson|2024-04-11T15:48:12+00:00August 29th, 2019|When we look at claims data, we see that many of the properties subject to break-ins, thefts, and vandalism are --- - Published: 2020-04-16 - Modified: 2025-10-24 - URL: https://nreig.com/products-overview/renovation-property-insurance/ Renovation property insurance for investorsRenovation property insurance is a must-have when doing major renovations to your property. It can limit your exposure to losses that can happen at the property during a rehab. National Real Estate Insurance Group can help protect your property and your investment during the renovation process. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get your renovation property insurance today! What does renovation property insurance cover? When renovating a property, dwelling coverage can protect your property against direct physical damage to the property, such as: Fire Lightning Sprinkler Leakage Windstorm and Hail Vandalism Theft Named Windstorm and more Choose between Basic and Special form coverage when discussing options with one of our insurance agents. Liability insurance for renovation propertiesPremises Liability coverage is critical in protecting you, the investor, from claims that happen at your investment property. Examples may include: If someone were to slip and fall on your property If a dog bite were to occur on your property Coverage extends to pools and spas, provided they meet code Medical expenses are included Our liability insurance options start as low as $7 per month, per property and come with a minimum of $1,000,000 per occurrence and $2,000,000 aggregate limits of liability. This coverage does not extend to general contractors or workers that you hire. Ask your agent if you would like to add General Contractors Liability or Products & Completed Ops. Request a Proposal How much renovation property insurance coverage do I need? Renovation property insurance provides coverage in an event of a loss at the property. Your coverage amount will depend upon your purchase price and your renovation budget. After you request a proposal, an agent will discuss with you how much coverage you need as everyone's situation is different. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. What deductible is right for a property being renovated? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. How much does renovation property insurance cost? Insurance costs on properties being renovated vary greatly based on your deductible, coverage amount, geographical location of your property and the size of your portfolio. With us, you can increase your coverage amount as you are allocating more resources into the project, never overpaying for insurance during the renovation process. You can obtain Replacement Cost coverage, extending to both the existing structure and improvements, when you insure your renovation property to $120 per square foot. Why choose us when insuring your renovation property? Ease of Use Insure all of your properties on one monthly report Monthly Payments Pay monthly with no long term commitments Leading Carriers All coverage underwritten by AM Best "A-" or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to your renovation insuranceWith NREIG, you can add extra coverage options to your renovation insurance coverage. After you request a proposal, an agent will contact you to discuss your proposal and additional coverages to limit your exposure. We have products ranging from flood to service line to additional liability limit options. Other Structures Flood Insurance Equipment Breakdown Earth Movement Terrorism and Political Violence Service Line Coverage More Products Manage your renovation property insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about renovation property insurance? Read one of our articles about renovation property insurance or go to our Resource Center to learn more about different insurance topics. BreAnn Stephenson2023-06-26T18:03:13+00:00Is It Covered? Contractors’ Injuries & WorkmanshipBy BreAnn Stephenson|2023-06-26T18:03:13+00:00June 18th, 2022|Though your insurance policy protects you from a variety of perils, contractor faulty workmanship or injury on the job site BreAnn Stephenson2024-04-11T15:48:12+00:008 Great Ways to Protect Vacant & Renovation PropertiesBy BreAnn Stephenson|2024-04-11T15:48:12+00:00August 29th, 2019|When we look at claims data, we see that many of the properties subject to break-ins, thefts, and vandalism are Shawn Woedl2023-06-26T18:09:38+00:00Premises Liability Coverage: General ContractorsBy Shawn Woedl|2023-06-26T18:09:38+00:00May 10th, 2017|Premises liability insurance covers property owners in case the owner's negligence causes harm or injury. The... --- - Published: 2020-04-13 - Modified: 2025-02-26 - URL: https://nreig.com/products-overview/new-construction-insurance/ New construction insurance for investorsWhen building a new construction property, it is important that you, the owner, have appropriate insurance coverage for the project, regardless of the General Contractors’ coverage. National Real Estate Insurance Group’s Builder’s Risk policy can help protect your property and your investment during the construction process. Submit your property information using our online proposal request, and receive a custom proposal. An agent will contact you to go over your custom insurance options and help you choose the best coverage for your specific situation. Start a proposal request to get your new construction insurance today! What does new construction insurance cover? When building a new property, Builder’s Risk coverage can protect your property against direct physical damage to the property, such as: Fire Lightning Windstorm and Hail Riot or Civil Commotion Vandalism and more After you request a proposal, your agent will discuss with you what is included with your property coverage. Liability insurance for new constructionLiability coverage is needed to protect you, the owner, from claims that happen during the construction process. As soon as you break ground, your liability exposure changes and it is critical that you transition to a New Construction liability policy. Liability claims examples may include: Accidental injury on the premises Wrongful death Medical expenses if someone is injured on the property Defense costs Liability coverage does not extend to general contractors or anyone hired to be on site. Ask your agent if you would like to learn more about General Contractors Liability or Products & Completed Ops policies. Request a Proposal How much new construction insurance coverage do I need? As a rule of thumb, you should insure your new construction project to your allocated budget (including hard and soft costs) or loan value, whichever is greater. In the event of a total loss, your payout will be based on your invested capital at the time of loss. After you request a proposal, an agent will discuss with you how much coverage you need as everyone's situation is different. You can request a proposal or call 888. 741. 8454 to discuss your proposal with one of our licensed insurance professionals. What deductible is right for a new construction property? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. How much does new construction insurance cost? Insurance costs on properties being built vary greatly based on the coverages you choose to carry, geographic area, deductible, and value of the project. Because of our monthly reporting form, you can increase your coverage amount as you allocate more resources to the project, never overpaying for insurance on a new construction property. Why choose us when insuring a new construction project? Ease of Use Insure your entire investment portfolio on one monthly report Monthly Payments Set up auto pay and pay for coverage monthly as-you-go Leading Carriers All coverage underwritten by AM Best “A-” or better rated carriers Nationwide Coverage Insure your investment portfolio in one place with coverage across 48 states Request a Proposal Add more coverage to your new construction insuranceWith NREIG, you can add extra coverage options to your new construction insurance coverage. After you request a proposal, an agent will contact you to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from flood to service line to additional liability limit options. Named Windstorm Coverage Terrorism and Political Violence Service Line Coverage Earth Movement Flood Insurance Equipment Breakdown More Products Manage your new construction insurance coverage with easeWhen insuring your properties with NREIG, you can make coverage changes and pay for coverage as-you-go. Our clients can choose to manage their account online 24/7 or work with their Client Service Advisor. Easy Pay Our monthly reporting form means you pay for coverage monthly as needed. Set up auto-pay to draft your costs electronically each month, or pay one year in advance and we will apply charges every month. Make changes to occupancy status, coverage, and insured value as needed and cancel coverage when you sell the property. With no minimum earned premiums, you only pay for the months where coverage is needed. Online Portal Manage your account online 24/7. Our online portal allows you to: View all properties on your account Get an Evidence of Insurance Pay for coverage and more If you prefer to work with an insurance agent directly, you will have a Client Service Advisor to help you manage your account. Request a Proposal Need to speak to an agent? Please give us a call at 888. 741. 8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly. Want to learn more about new construction insurance? Read one of our articles about new construction insurance or go to our Resource Center to learn more about different insurance topics. Julie Prewitt2025-06-16T19:20:53+00:00Insurance for New Construction PropertiesBy Julie Prewitt|2025-06-16T19:20:53+00:00February 12th, 2020|When purchasing insurance for new construction properties, it is important to understand its unique insurance needs. Neglecting to do so Julie Prewitt2024-01-16T16:50:01+00:00Tips for Controlling Your Insurance Costs in 2020By Julie Prewitt|2024-01-16T16:50:01+00:00December 27th, 2019|Following the trends of 2017 and 2018 (which saw five of the 15 costliest catastrophes in history), 2019 continued to BreAnn Stephenson2024-04-11T15:48:12+00:008 Great Ways to Protect Vacant & Renovation PropertiesBy BreAnn Stephenson|2024-04-11T15:48:12+00:00August 29th, 2019|When we look at claims data, we see that many of the properties subject to break-ins, thefts, and vandalism... --- - Published: 2020-03-16 - Modified: 2025-11-12 - URL: https://nreig.com/claims-process/ Our CommitmentExperiencing damage to one of your properties can be extremely frustrating and overwhelming. That's why National Real Estate Insurance Group has a Client Experience team dedicated to helping you through this stressful time. If you’ve experienced a loss at your property, fill out an incident report or notify NREIG via phone: (888)741-8454, Ext. 1005, or email: claims@nreig. com. Report an IncidentThe Claims ProcessUnderstanding how the claims process works can make filing a claim more seamless and less stressful. While National Real Estate Insurance Group does not investigate, pay, or deny claims, our Client Experience team is here to serve as an intermediary and advocate on your behalf. Below is what you can expect moving forward. Claim Report When a loss happens, your first priority is the safety of yourself, your property manager, and your tenant. When it is safe to do so, it is your responsibility to mitigate any further damage. Generally, any mitigation-related expenses you incur due to a covered loss will be considered as a part of your claim. This may include things like water extraction, roof tarping, or boarding windows and doors. Take photos of the damage to submit with your claim. Initiate the claims process with NREIG by filling out the Report an Incident form. Our team will provide a general outline of your coverage and submit the claim to a Third-Party Administrator (TPA) to investigate coverage for the loss with the insurance carrier’s input. Investigation Upon receiving the claim submission, the TPA will review it and send it to the insurer for approval to proceed with the investigation. The TPA identifies and appoints an independent adjuster within a local proximity to the loss. The adjuster will contact you, the insured, typically within 48 to 72 business hours to schedule an inspection of the property at the earliest available time. From the time of the inspection, the adjuster typically has from 10 to 21 days to create an estimate (if needed), communicate with relevant parties, retrieve necessary claim documentation, and develop a report to send to the TPA for further review. Evaluation The TPA reviews the adjuster’s report and may request clarification or revisions from the adjuster. Then, the TPA submits their settlement recommendation to the insurer (or insurance carrier). Please note, that your insurance carrier is listed on your Evidence of Insurance. You can access a copy of your insurance policy via your monthly statement. Resolution It is up to the insurer to approve or deny the claim based on the adjuster’s report and the TPA’s recommendation. There are several reasons a claim may be denied: the cause of loss is not covered on the policy, the insured did not fulfill certain responsibilities of the insurance contract, the loss was deemed intentional, the occupancy status was misreported, among other common exclusions. Claim resolution can take a matter of days, or up to several months depending on the complexity of the loss and required investigation. Our team will do everything we can to keep you informed during this process. Closure The TPA will notify you of the insurer's decision in writing. The insurer will then submit payment if deemed appropriate, considering any deductibles, depreciation, or co-insurance penalties. Depending on whether you have selected Actual Cash Value or Replacement Cost settlement method on your policy, you may receive the claims payment in either one check, or two, the second being to recover depreciation (following submission of applicable receipts). Additional NotesIf your quotes for repair are higher than the one provided by the adjuster, that is OK. You can submit quotes to the adjuster for review. If they approve the quotes submitted, you will be issued an additional payment. If your policy has replacement cost coverage, once repairs are completed, you will need to submit your proof of payment to the adjuster. The adjuster will then issue you the final payment. If you are unsure which settlement method you have selected, you can find it listed on your Evidence of Insurance (EOI). To obtain a copy of the EOI: Log in to the client portal > Under “Property List” find the location you wish to view, click “View Coverage” > Once document generation is complete, you will be able to view the EOI for the selected location. Need to speak to a representative? The Client Experience team at National Real Estate Insurance Group is dedicated to helping you through the claims process. If you need any assistance, please call (888)741-8454, Ext. 1005, or email claims@nreig. com. --- - Published: 2020-03-12 - Modified: 2025-10-20 - URL: https://nreig.com/ Insurance Built for Real Estate Investors. A program that molds to your portfolio, backed by a team of experts to help you navigate coverage options and ensure you’re protected effectively. Request a Proposal What would you like to protect? Rental Property Reno Property Vacant Property Vacation Rental Log Cabin All Products Simplify your insurance experience One-stop-shop Insure occupied, vacant, renovation properties on one monthly report Monthly payments Pay for coverage monthly, with no long-term commitments Ease of use Add and delete properties as-you-go, never overpay for coverage Online portal Manage your coverage online and access your account 24/7/365 Request a Proposal "NREIG made the claims filing, investigation, and processing a breeze to go through. I have been with NREIG for four years now and highly recommend them. ” Kapil L. , Australia “With NREIG I can add and remove coverage as I buy and sell properties. Working with them has been a breeze. " Missy M. , Ohio "I've experienced friendly customer service and plan to continue using NREIG as part of my investment strategy. ” AUSTIN M. , Alabama “Everyone should be taking advantage of the knowledge NREIG brings to protect lenders and their borrowers. ” DOUG C. , California “NREIG has some of the best rates in the industry, which is great for my bottom line! ” MICHAEL S. , Tennessee You invest, we protect We've created insurance solutions specifically with real estate investors in mind. You'll be impressed with our experience and ease of use. Learn more Industry pros Insuring investment properties for nearly 20 years Nationwidecoverage Coverage in 48 states with no geographical restrictions Trusted carriers All coverage underwritten by AM Best "A-" or better rated carriers Request a proposal today Whether you have one property or hundreds, simplify your insurance experience with monthly billing and no long-term commitments. Request a Proposal --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/coverage-options/ yes Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2025-12-08T21:33:34+00:00Unique Insurance Challenges for Log Cabin RentalsBy MacKenzie Coder|2025-12-08T21:33:34+00:00December 8th, 2025|Summary Log cabins are insurable, but their natural materials, remote locations, and higher exposure to fire, moisture, and maintenance issues make them riskier (and often more expensive) to insure than traditional investment properties. Real estate investors need log MacKenzie Coder2025-12-23T20:59:09+00:00Premises vs Personal Liability Insurance: A Guide for Real Estate InvestorsBy MacKenzie Coder|2025-12-23T20:59:09+00:00October 29th, 2025|Summary Personal liability insurance won’t cover your risk as a rental property owner. Premises liability insurance protects real estate investors from claims related to injuries or damages that occur on their rental or investment properties. MacKenzie Coder2025-10-17T19:07:45+00:00Insuring Log Cabins with National Real Estate Insurance Group By MacKenzie Coder|2025-10-17T19:07:45+00:00October 17th, 2025|In our Program, log cabins are defined as homes built from horizontal log walls, with corner notching, chinking, and a gabled roof (preferred). Log homes are typically rustic or pioneer-style design and found in rural MacKenzie Coder2024-11-11T23:10:58+00:00Insuring Mobile/Manufactured Homes With NREIGBy MacKenzie Coder|2024-11-11T23:10:58+00:00August 22nd, 2024|In our Program, mobile homes are defined as homes that no longer have wheels and are on permanent foundation, making them fixed dwellings. Manufactured homes, on the other hand, are factory-built or prefabricated and prepared MacKenzie Coder2025-10-24T14:04:52+00:00Covering Your Liability Risks with NREIG By MacKenzie Coder|2025-10-24T14:04:52+00:00August 1st, 2024|While insuring the physical structure of a property is crucial, it is equally important to consider the liability risks you face as an investor. Most property owners are familiar with the significance of carrying a Shawn Woedl2025-08-18T18:01:31+00:00NREIG’s Tenant Protector Plan®–A Renters Insurance Alternative for LandlordsBy Shawn Woedl|2025-08-18T18:01:31+00:00July 22nd, 2024|Do you require your tenants to carry renters insurance in your lease? Do you enforce it? Your tenants can go out in the open insurance market and purchase an annual renters insurance policy by paying 12···8Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/fire/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage BreAnn Stephenson2025-09-22T16:39:54+00:00Life-Saving Tools and Methods to Protect Your Tenants from a FireBy BreAnn Stephenson|2025-09-22T16:39:54+00:00September 22nd, 2025|Aside from regular inspections, smoke alarms, fire suppression tools, and emergency planning are crucial components in protecting your tenants from a fire. These life-saving measures can cut potential fire deaths in half. Alarms & Fire MacKenzie Coder2024-09-16T15:41:29+00:00Smoke Detector Maintenance and RecommendationsBy MacKenzie Coder|2024-09-16T15:41:29+00:00October 22nd, 2023|Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a MacKenzie Coder2024-01-17T16:00:16+00:00Wildfire Avoidance ChecklistBy MacKenzie Coder|2024-01-17T16:00:16+00:00October 5th, 2023|This Wildfire Avoidance Checklist is designed to help you develop a maintenance plan that will give your property a better chance of surviving a wildfire. Research shows that embers (burning pieces of airborne wood or 123Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/insurance-education/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2026-01-02T20:14:34+00:00Water Losses Explained: Flood, Water Damage, and Sewer BackupBy MacKenzie Coder|2026-01-02T20:14:34+00:00December 30th, 2025|Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type of water damage is handled differently by your insurance. Watch the video below for a MacKenzie Coder2026-01-02T20:05:57+00:00Insurance Providers Explained: What Every Real Estate Investor Should KnowBy MacKenzie Coder|2026-01-02T20:05:57+00:00December 30th, 2025|Not all insurance providers are created equally. Whether you're insuring your first rental or managing a growing portfolio, understanding the difference between captive agents, independent agencies, brokers, and carriers can make or break your coverage. Watch the video below MacKenzie Coder2026-01-02T20:16:59+00:00What is an Insurance Moratorium? By MacKenzie Coder|2026-01-02T20:16:59+00:00December 30th, 2025|When severe weather, hurricanes, wildfires, or other natural disasters are on the horizon, insurance carriers often issue a moratorium. But what does that actually mean for real estate investors? Watch the video below to learn more about MacKenzie Coder2025-12-23T20:59:09+00:00Premises vs Personal Liability Insurance: A Guide for Real Estate InvestorsBy MacKenzie Coder|2025-12-23T20:59:09+00:00October 29th, 2025|Summary Personal liability insurance won’t cover your risk as a rental property owner. Premises liability insurance protects real estate investors from claims related to injuries or damages that occur on their rental or investment properties. MacKenzie Coder2025-08-01T15:30:39+00:00Property Insurance Moratoriums: Key Information for Real Estate InvestorsBy MacKenzie Coder|2025-08-01T15:30:39+00:00August 1st, 2025|When severe weather or a natural disaster is forecasted, insurance carriers may issue a moratorium. These temporary suspensions may disrupt your ability to protect your investments when they need coverage most, especially if proper coverage MacKenzie Coder2025-06-24T20:46:50+00:00Standard Exclusions on Investment Property PoliciesBy MacKenzie Coder|2025-06-24T20:46:50+00:00April 8th, 2025|Exclusions play a significant role in defining the boundaries of your insurance coverage as they outline what is not covered by your policy. Carriers may exclude coverage for specific exposures for multiple reasons. Some risks 12···19Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/nreig-news/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2025-10-24T14:42:10+00:00NREIG Stands Out as the Leading Provider of Real Estate Investment InsuranceBy MacKenzie Coder|2025-10-24T14:42:10+00:00May 5th, 2025|It's not uncommon for investors to shop for insurance based on price or to take what seems like the easiest route, such as obtaining a policy through the same carrier that insures their primary residence. MacKenzie Coder2025-06-26T19:39:09+00:00NREIG Billing Frequently Asked Questions By MacKenzie Coder|2025-06-26T19:39:09+00:00March 6th, 2024|What payment types do you accept and how can I change/update my payment information? We accept checks, credit cards, ACH payments, and wire payments. Payment method changes can be submitted through the Client Portal, our --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/safety-maintenance/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2026-01-09T17:29:08+00:00New Year, Smarter Rentals: Safety, Leases, and Landlord Processes to Review NowBy MacKenzie Coder|2026-01-09T17:29:08+00:00January 9th, 2026|Summary January is a good time for landlords to reassess how their rentals are managed. Reviewing tenant communication, lease language, maintenance processes, and insurance coverage can help reduce risk, improve efficiency, and set expectations for the year BreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a MacKenzie Coder2026-01-02T20:14:34+00:00Water Losses Explained: Flood, Water Damage, and Sewer BackupBy MacKenzie Coder|2026-01-02T20:14:34+00:00December 30th, 2025|Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type of water damage is handled differently by your insurance. Watch the video below for a MacKenzie Coder2026-01-02T20:05:57+00:00Insurance Providers Explained: What Every Real Estate Investor Should KnowBy MacKenzie Coder|2026-01-02T20:05:57+00:00December 30th, 2025|Not all insurance providers are created equally. Whether you're insuring your first rental or managing a growing portfolio, understanding the difference between captive agents, independent agencies, brokers, and carriers can make or break your coverage. Watch the video below MacKenzie Coder2026-01-02T20:16:59+00:00What is an Insurance Moratorium? By MacKenzie Coder|2026-01-02T20:16:59+00:00December 30th, 2025|When severe weather, hurricanes, wildfires, or other natural disasters are on the horizon, insurance carriers often issue a moratorium. But what does that actually mean for real estate investors? Watch the video below to learn more about MacKenzie Coder2025-12-08T21:33:34+00:00Unique Insurance Challenges for Log Cabin RentalsBy MacKenzie Coder|2025-12-08T21:33:34+00:00December 8th, 2025|Summary Log cabins are insurable, but their natural materials, remote locations, and higher exposure to fire, moisture, and maintenance issues make them riskier (and often more expensive) to insure than traditional investment properties. Real estate investors need log 12···30Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/seasonal-weather-tips/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage BreAnn Stephenson2025-09-22T16:39:54+00:00Life-Saving Tools and Methods to Protect Your Tenants from a FireBy BreAnn Stephenson|2025-09-22T16:39:54+00:00September 22nd, 2025|Aside from regular inspections, smoke alarms, fire suppression tools, and emergency planning are crucial components in protecting your tenants from a fire. These life-saving measures can cut potential fire deaths in half. Alarms & Fire Shawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I BreAnn Stephenson2024-11-26T22:16:44+00:00Five Signs Your Tree is in TroubleBy BreAnn Stephenson|2024-11-26T22:16:44+00:00November 26th, 2024|It’s easy to take tree health for granted. We assume our trees will always remain standing and won’t require any maintenance. However, costly problems can sneak up on you if you don’t include tree inspection 12···7Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/tenant-relations/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage Shawn Woedl2025-08-18T18:01:31+00:00NREIG’s Tenant Protector Plan®–A Renters Insurance Alternative for LandlordsBy Shawn Woedl|2025-08-18T18:01:31+00:00July 22nd, 2024|Do you require your tenants to carry renters insurance in your lease? Do you enforce it? Your tenants can go out in the open insurance market and purchase an annual renters insurance policy by paying BreAnn Stephenson2024-09-16T20:51:52+00:00Fire Prevention Tips for Real Estate Investors & TenantsBy BreAnn Stephenson|2024-09-16T20:51:52+00:00September 22nd, 2023|Are you and your tenants prepared to deal with a house fire? What may seem like common sense to you might not be to others. Besides, it's hard to know how people will react when MacKenzie Coder2023-08-22T17:13:54+00:00Mitigation Tips for the Most Common Property LossesBy MacKenzie Coder|2023-08-22T17:13:54+00:00August 21st, 2023|At NREIG, we see numerous property claim submissions each day. And while some losses like hail damage are unavoidable, many are preventable. Taking proactive measures to protect your investment properties can significantly reduce the likelihood BreAnn Stephenson2023-07-27T17:04:58+00:00What to Look for on a Tenant’s Background CheckBy BreAnn Stephenson|2023-07-27T17:04:58+00:00July 20th, 2023|While the ability to make rent is important, you don't want to overlook the significance of a potential tenant's character. Missed rent payments can derail your cash flow, but someone who doesn’t respect your property BreAnn Stephenson2025-07-28T14:35:12+00:00Is Tenant Damage Covered Under Your Insurance Policy? By BreAnn Stephenson|2025-07-28T14:35:12+00:00June 1st, 2023|Many assume that under a landlord insurance policy, ANY kind of damage done by a tenant will be covered, but this is simply not the case. Though coverages vary, certain types of damage done by 123Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/water/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBy BreAnn Stephenson|2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBy BreAnn Stephenson|2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils BreAnn Stephenson2025-11-12T19:26:36+00:00Holiday Safety Tips for LandlordsBy BreAnn Stephenson|2025-11-12T19:26:36+00:00October 23rd, 2025|The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage Shawn Woedl2025-04-25T17:46:36+00:00What’s the Difference Between Flood, Water Damage & Sewer Back-up Coverage? By Shawn Woedl|2025-04-25T17:46:36+00:00March 12th, 2025|Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I Insured Investors2025-05-14T14:36:38+00:00The Difference Between Flood, Water Damage, and Sewer Backup By Insured Investors|2025-05-14T14:36:38+00:00May 15th, 2024|You may be surprised to learn that your definition of flood and your insurance company's definition may differ. And we get it. It's a confusing topic, especially for those not in the insurance industry. But MacKenzie Coder2023-08-22T17:13:54+00:00Mitigation Tips for the Most Common Property LossesBy MacKenzie Coder|2023-08-22T17:13:54+00:00August 21st, 2023|At NREIG, we see numerous property claim submissions each day. And while some losses like hail damage are unavoidable, many are preventable. Taking proactive measures to protect your investment properties can significantly reduce the likelihood 12···4Next --- - Published: 2019-11-22 - Modified: 2019-11-22 - URL: https://nreig.com/resources/insurance-education/is-it-covered/ Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryBreAnn Stephenson2024-09-16T15:37:42+00:00Is It Covered? Burst PipesBy BreAnn Stephenson|2024-09-16T15:37:42+00:00February 6th, 2023|It's a common misconception that water damage from a burst pipe at your investment property is automatically covered. Water Damage from a burst pipe is not included under Basic Form coverage. Broad and Special Form formats of BreAnn Stephenson2024-11-04T18:23:00+00:00Is It Covered? Garages, Fences & Other StructuresBy BreAnn Stephenson|2024-11-04T18:23:00+00:00January 31st, 2023|Some assume coverage for garages, fences, and other outdoor structures is automatically included in their insurance policy as these items are located on the same land as the main house. Coverage for “Other Structures” is BreAnn Stephenson2024-01-12T19:29:32+00:00Is It Covered? Theft and VandalismBy BreAnn Stephenson|2024-01-12T19:29:32+00:00December 18th, 2022|Many people are unclear about the differences between acts of theft, vandalism, and burglary, as well as whether or not coverage for those perils is available under the three main policy formats: Basic, Broad, and BreAnn Stephenson2024-12-02T20:57:10+00:00Is It Covered? Sewer BackupBy BreAnn Stephenson|2024-12-02T20:57:10+00:00December 17th, 2022|Many people think their property policy automatically includes Sewer Backup coverage. However, according to the Insurance Information Institute (I. I. I. ), most homeowners and business insurance policies do not include coverage for sewer backup unless that specific BreAnn Stephenson2023-06-26T18:01:20+00:00Is It Covered? Snow, Ice & SleetBy BreAnn Stephenson|2023-06-26T18:01:20+00:00November 16th, 2022| Did you know that damage from the weight of snow, ice, or sleet is only covered under certain policy formats? For those who invest in more northern or mountainous areas, it is important to BreAnn Stephenson2025-06-17T20:46:23+00:00Is It Covered? Aluminum WiresBy BreAnn Stephenson|2025-06-17T20:46:23+00:00November 16th, 2022|Many people simply don’t know their policy may contain an exclusion of coverage when a fire results from the use of aluminum wiring. However, many homes being purchased today as investment properties were built during 123Next --- - Published: 2019-09-17 - Modified: 2023-09-13 - URL: https://nreig.com/contact-us/ Get in touch with us, we're happy to helpIf you have questions or concerns, please submit this form and we will be in touch with you shortly. If you need an insurance proposal, please click here and fill out the necessary property information. We cannot provide you a proposal from the form below. One of our insurance agents will contact you to discuss your custom insurance options. Or you can call us at 888. 741. 8454 and press 4 for sales. Contact InformationOffice Address 11500 N Ambassador Drive Suite 310 Kansas City, MO 64153 Billing Address P. O. Box 7410114 Chicago, IL 60674-0114 All payment should be sent to this address only. Phone: 888. 741. 8454 Fax: 913. 894. 6534 Email: info@NREIG. com Media Inquiries: marketing@nreig. com --- - Published: 2019-09-16 - Modified: 2025-09-24 - URL: https://nreig.com/privacy-policy/ Last updated: 7/7/2025 Privacy Policy BY ACCESSING AND/OR USING OUR WEBSITES, SERVICES, AND/OR BY COMMUNICATING WITH US IN ANY MANNER, YOU REPRESENT THAT YOU HAVE READ AND UNDERSTOOD THIS POLICY. National Real Estate Insurance Group (NREIG) and its related legal entities are required to protect our customers’ nonpublic personal information. By participating in our insurance program, using our websites, and any other applications, forms, tools, features, content (including without limitation videos and images), services and options available through the websites or otherwise provided by NREIG, you agree to our collection and use of personal information in accordance with this Privacy Policy. Information We Collect and How We Use It: We may collect nonpublic personal information from the following sources: Information obtained directly from you or your agent, including information from your application, such as name, address, telephone number, social security number, assets and income. Information obtained indirectly from you or your agent, such as when you use our services or interact with our systems. Information from third parties, such as your credit history. We may use this information for purposes such as the following: To provide insurance services to you Auditing, research, and analysis in order to maintain, protect, and improve our services To ensure the technical effectiveness of our systems To develop new services We do not disclose the nonpublic personal information of our customers or former customers, except as permitted or required by law. SMS consent is not shared with third parties or affiliates. We reserve the right, however, to change this policy at any time. Information Security We maintain electronic, physical and procedural safeguards that comply with federal regulations to protect your nonpublic personal information. We limit access to your nonpublic personal information to those employees who need to know that information to perform their job responsibilities. If you have reason to believe that your personal information is no longer secure, please notify us immediately. Links to Third Party Websites Our systems may contain links to other websites/applications and other websites/applications may reference or link to our websites or systems. These other websites and applications are not controlled by us. We encourage our users to be aware when they leave our websites and to read the privacy policies of each website and application with which they interact. We do not endorse, screen or approve, and are not responsible for the privacy practices or content of such other websites or applications. Information of Minors We do not actively seek to gather information from individuals under the age of eighteen. We do not target our services to minors, and would not expect them to be engaging with our websites or services. If we are aware of any personal information that we have collected about minors, we will take steps to securely remove it from our systems. Non-United States Residents Please be advised that if you are located outside of the United States, laws related to data collection and use may differ from United States law, and your personal information submitted through our systems and transferred to the United States may not have the same legal data protection as in your jurisdiction. Accessing our services is prohibited from territories where our systems or any content thereon is illegal. If you access our systems from other locations, you do so at your own initiative and are responsible for compliance with local laws. Terms of Use We’ve established the foregoing “terms of use” to explain the conditions of your use of this website, including how you may and may not use the information provided on our website, and our intent in providing such information to you. Essentially, these terms are intended to help maximize the information provided on our website for your benefit. By accessing any areas of www. nreig. com, you agree to be bound by the terms set forth below. If you disagree with these terms, please do not use this website. Our Intellectual Property is for Your Non-commercial Use Our intellectual property is provided for your information, so we want you to feel free to access our website, download, save, and/or print any information you need. However, just as you protect your property from theft and inappropriate use, we need to protect our intellectual property from similar harm. All of the materials on this website, including the organization and layout of this website and all graphics and logos, are owned and copyrighted by National Real Estate Insurance Group. You may access, download, and print materials from this website for your personal noncommercial use, but understand that by doing so you do not obtain any rights, interest, or title to the materials you read, print, or download. You cannot copy, modify, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, link to, or frame in another website or use on any other website, or transfer or sell any information obtained from this website without written permission from National Real Estate Insurance Group. Note that all information on our website is designed and intended for “human consumption” and not machine interpretation. Accordingly, data extraction techniques such as web or screen scraping are strictly prohibited. No Unlawful or Prohibited Use By using this website, you warrant to National Real Estate Insurance Group that you will not use this website or any of its contents for any unlawful use, or any use that is otherwise prohibited pursuant to these terms. Any violation of this provision will result in prompt revocation of our permission granted to you to use this website. Testimonials Testimonials on this website are a representation of “typical” customer experiences. Individual experiences, satisfaction, and cost savings often differ from our typical customer. Customer names and towns may have been changed to honor their privacy. Liability Disclaimer All information, services, products, or other material on this website are provided “as is” without warranty of any kind. In no event shall National Real Estate Insurance Group, its affiliates, suppliers, and/or its agents be liable for any direct, indirect, incidental, special, or... --- - Published: 2019-05-20 - Modified: 2025-02-26 - URL: https://nreig.com/careers/ Client-Driven Insurance LeaderAt National Real Estate Insurance Group, we understand there is no such thing as a one-size-fits-all policy for investors. In 2008, we developed our Program to address the ever-changing needs of a once-underserved market. As a risk management program partner, we work with industry-leading carriers to deliver custom insurance products to real estate investors nationwide. Our primary goal is to do right by our clients and be a one-stop shop for all investment insurance needs. Available positionsWhat is life at NREIG like? When you join NREIG, the sky's the limit. Our "people-first" mindset starts with our employees and extends through the dynamic products and services we provide our clients. We are a team of driven, innovative, and collaborative professionals who believe that every day is an opportunity for success, growth, and fulfillment. Of course, we also love to have fun! Our team enjoys company outings like sporting events, participating in the Kansas City Corporate Challenge athletic events, and countless group celebrations. Insurance may be a little boring, but we aren't! At NREIG our mission is to lead, innovate, and influence as THE solution for real estate investors. Everything we do is guided by our values. Diversity, equity, and inclusionNREIG is committed to fostering, cultivating, and preserving a culture of diversity and inclusion. Our people are the most valuable asset we have. The individual differences and life experiences that our employees incorporate into their work represent a significant part of our culture, reputation, and success as a company. We embrace and encourage our employees’ differences in age, sex, race, color, physical and mental ability, ethnicity, national origin, language, sexual orientation, gender identity or expression, religion, political affiliation, family or marital status, socio-economic status, and other characteristics that make our employees unique. We are an equal opportunity employer and discrimination of any type will not be tolerated. We care about our team We know that your success and well-being go way beyond what you do at work. Our benefits are designed to make it easy for you to take care of yourself now, and in the future. A career at NREIG offers: Affordable and comprehensive health benefits Competitive salary with opportunities for advancement HSA and FSA with contribution matching 401K plan with contribution matching Paid time off, including holidays and volunteer hours Parental leave Hybrid work environment with flexible work schedules Internal development and training programs Continuing education opportunities Recognition Program Engaging, challenging, and supportive team atmosphere E-Verify At NREIG, we comply with federal law by verifying employment eligibility. Equal Employment Opportunity NREIG provides equal employment opportunities to all employees and applicants for employment and prohibits discrimination and harassment of any type without regard to race, color, religion, age, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, gender identity or expression, or any other characteristic protected by federal, state or local laws. --- - Published: 2017-01-11 - Modified: 2025-06-26 - URL: https://nreig.com/faq/ Frequently asked questions about National Real Estate Insurance GroupWhat type of agency is National Real Estate Insurance Group (NREIG)? NREIG is an independent insurance agency, licensed in all 50 states. As an agency, this means that we represent both the client and the insurance carrier in the advisement and administration of coverage for the properties in our program. We are contracted with a variety of carriers that underwrite the risks in our program based on their appetite and specialization. As the agent, our advisors work with clients to identify and place coverage with the carrier that is most appropriate for their property based on their business strategy, their own appetite for risk, the desired coverages, and the best rate. During the claims process, we work alongside our clients to ensure they are informed of the progress of their claim and act as a liaison with the Third-Party Administrator that is contracted with the carrier to evaluate and recommend claims outcomes. NREIG does not investigate, pay, or deny claims. What makes NREIG different? For properties in our Program (one- to twenty-unit dwellings) NREIG offers monthly billing with no minimum earned premiums or long-term commitments. Coverage is provided in most states and for all phases of occupancy: tenant-occupied, vacant, locations under renovation, or ground-up construction. You can include all of your properties on one monthly schedule, called a"monthly reporting" form, even if they are owned by different entities (IRAs, Trusts, LLCs). The program allows you to add and delete properties as your portfolio changes, and change your occupancy status or coverage options on a monthly basis without having to cancel and re-write a policy. We make it as easy as possible. NREIG also allows investors to insure their property to a much lower dollar amount per square foot, giving the client flexibility in selecting the amount of property coverage that is right for their situation. Learn more about the Program here. What is a Monthly Reporting Form? A monthly reporting form is an insurance methodology which allows “inventory” flexibility in regards to insurance coverage. This allows locations in our Program to change coverages month-to-month. Such changes could relate to occupancy (a location goes from vacant to occupied), insured value (a renovation is completed increasing the property's value), as well as adding and deleting location coverage to an account as they are bought and sold. Clients receive a monthly invoice which reflects the current month’s inventory and related coverages from their Client Service Advisor. This is a much simpler process than the traditional “endorsement per change” that is utilized by most insurance providers. Learn more here. Who are the Insurance Carriers for the Program? NREIG is proud of the relationships we've built with our carefully curated carriers who understand the unique risks that come along with the REI marketplace. All insurers we utilize are rated by A. M. Best as “A-” or better, the recognized indicator of the financial history and strength of an insurer. You can learn more about A. M. Best here. How do I make changes to my account and/or covered locations? In order to make changes simple for our clients, NREIG has developed our Client Portal. Simply submit your requested changes and we'll take care of the rest. When will I receive my invoice? Invoices are sent via email on the 11th of each month. Review your statement and Report Changes to us. What if I make changes to my inventory after payment is posted? The 3rd of each month is the last available date to make changes to the prior month’s inventory. If changes are made after payment has been posted for that month, the balance will be carried over to the next month. In order to avoid being charged for coverage in a given month, coverage must be cancelled before the end of the prior month. Because we are a monthly reporting program, any month coverage is affording (no matter how long), the location is reported to the carrier, and premium is due. What if I don't make a payment by the due date? If payment is not made by the due date, a 10-day notice of intent to cancel is sent to you, and any applicable lenders, on the 10th of each month. If payment isn’t received by the 20th, your coverage will be cancelled. What should I do if an incident occurs at one of my properties? Contact the appropriate authorities immediately (if applicable) Contact NREIG at 888-741-8454 or Report an Incident online Take steps to protect the property from further damage Document damages via photos and videos if possible Keep a record of all expenses necessary to protect property and provide receipts Allow claims adjuster to inspect the property providing the loss or damage Learn more about the claims process here. --- - Published: 2017-01-11 - Modified: 2023-10-20 - URL: https://nreig.com/resources/ Search for: Most Recent Coverage Options Insurance Education Is It Covered? Investing Tips Tenant Relations Seasonal Tips Spring Summer Fall Winter Weather Events Earthquakes & Sinkholes Floods Hurricanes & Storm Surges Tornadoes & Thunderstorms Wildfires Winter Storms Fire Water Checklists NREIG News GlossaryMacKenzie Coder2026-01-09T17:29:08+00:00New Year, Smarter Rentals: Safety, Leases, and Landlord Processes to Review NowMacKenzie Coder2026-01-09T17:29:08+00:00January 9th, 2026|Summary January is a good time for landlords to reassess how their rentals are managed. Reviewing tenant communication, lease language, maintenance processes, and insurance coverage can help reduce risk, improve efficiency, and set expectations for the year BreAnn Stephenson2026-01-06T18:41:54+00:00How to Winterize a Vacant Investment PropertyBreAnn Stephenson2026-01-06T18:41:54+00:00January 5th, 2026|Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a MacKenzie Coder2026-01-02T20:14:34+00:00Water Losses Explained: Flood, Water Damage, and Sewer BackupMacKenzie Coder2026-01-02T20:14:34+00:00December 30th, 2025|Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type of water damage is handled differently by your insurance. Watch the video below for a MacKenzie Coder2026-01-02T20:05:57+00:00Insurance Providers Explained: What Every Real Estate Investor Should KnowMacKenzie Coder2026-01-02T20:05:57+00:00December 30th, 2025|Not all insurance providers are created equally. Whether you're insuring your first rental or managing a growing portfolio, understanding the difference between captive agents, independent agencies, brokers, and carriers can make or break your coverage. Watch the video below MacKenzie Coder2026-01-02T20:16:59+00:00What is an Insurance Moratorium? MacKenzie Coder2026-01-02T20:16:59+00:00December 30th, 2025|When severe weather, hurricanes, wildfires, or other natural disasters are on the horizon, insurance carriers often issue a moratorium. But what does that actually mean for real estate investors? Watch the video below to learn more about MacKenzie Coder2025-12-08T21:33:34+00:00Unique Insurance Challenges for Log Cabin RentalsMacKenzie Coder2025-12-08T21:33:34+00:00December 8th, 2025|Summary Log cabins are insurable, but their natural materials, remote locations, and higher exposure to fire, moisture, and maintenance issues make them riskier (and often more expensive) to insure than traditional investment properties. Real estate investors need log MacKenzie Coder2025-12-23T21:05:17+00:00Landlord Checklist: Leasing Your First Rental PropertyMacKenzie Coder2025-12-23T21:05:17+00:00December 8th, 2025|Leasing your first rental property can feel overwhelming, but the right preparation makes all the difference. Use this checklist to ensure your property is safe, compliant, and properly protected before welcoming your first tenant. Property Prep & Safety BreAnn Stephenson2025-12-05T16:35:00+00:00How to Winterize an Occupied Investment PropertyBreAnn Stephenson2025-12-05T16:35:00+00:00December 5th, 2025|While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils 12···24Next --- - Published: 2016-12-15 - Modified: 2025-11-12 - URL: https://nreig.com/team/ NREIG is more to our clients than policies and contracts. The NREIG team is dedicated to being an ally and advisor in the investing journey; the shield that protects from the unforeseen and support that empowers our clients to succeed. We strive to bring innovative products and solutions to the under-served investor market, staying ahead of client needs, and helping to simplify the insurance process every step of the way. Leadership TeamShawn Woedl CEOMeet ShawnBrooke Beets COOMeet BrookeBrent Lombardi CAOMeet BrentLara Mazza CDAOMeet LaraJerry Samson CTOMeet JerryNicky Compton VP, BillingSeth Markum EVP, SalesMeet SethMarie O'Dell-Bowman VP, Client ServiceJulie Prewitt SVP, MarketingMeet JulieJacqui Price EVP, UnderwritingMeet Jacqui×Shawn Woedl | CEO Shawn Woedl joined NREIG in 2014 to run the sales team, having spent the previous seven years building CORE Insurance Group, specializing in large habitational risks. Shawn has been instrumental in growing NREIG into the largest and most profitable Insurance Program in the country. In 2019, he was elevated to President of NREIG, and named CEO in 2020. He is responsible for overseeing all aspects of the agency, specifically focused on insurance carrier and industry relationships, developing new and innovative product offerings, and managing internal sales and service processes. He is an industry-recognized speaker and educator with an emphasis in Commercial Property insurance. When he is not selling insurance, Shawn can be found training Brazilian Jiu Jitsu. Shawn resides in the Kansas City area with his wife and two children. Close×Brooke Beets | COO Brooke joined NREIG in 2018 to lead the learning and development team, focused on training new employees as well as continuing education. She quickly proved her firm understanding of the NREIG program and insurance industry, playing a valuable role in process improvement, internal communication, and staff development. In 2021, she took over company operations, overseeing the sales, service and support functions, marketing and client retention. She is passionate about helping others to be successful in their professional endeavors. In her free time, she makes training personal as a fitness instructor, and volunteers with a local animal welfare organization. Close×Brent Lombardi | CAO Brent is an industry veteran, bringing 25 years of risk management, compliance and claims experience to NREIG. Most recently, he served as President of First Consulting & Administration, a 50-year old insurance consulting firm with broad expertise across P&C, health, life and annuities. Close×Lara Mazza | Chief Data and Analtyics Officer With 18 years of experience in the insurance industry, Lara is well-versed in claims, data analytics, and project management. In her role at NREIG, Lara collaborates with department leaders to ensure a unified approach to data, resulting in enhanced decision-making and increased efficiency. Lara’s ability to transform data into actionable insights has a direct impact on our business decisions and strategies. Close×Jerry Samson | CTO A graduate of Kansas State, Jerry has nearly 20 years of IT experience, joining NREIG in 2013. As Chief Technology Officer, he ensures the team is outfitted with the necessary technology to perform day to day duties and oversees the development team for our proprietary client and location management software, which is critical to powering our business and facilitating our growth. Close×Katelyn Click | Controller As a Certified Public Accountant with ten years of progressive accounting experience, Katelyn brings a wealth of expertise to her role as Controller. In addition to managing our annual audit and budget processes, Katelyn oversees financial reporting, forecasting, month-end, and treasury duties. Katelyn also collaborates with other departments to enhance and streamline financial-adjacent processes at NREIG. Close×Seth Markum| SVP, Business Development Seth has over 15 years of experience in the property and casualty space. He co-founded one of the first national online commercial P&C agencies that harnessed the internet as a distribution channel before its mainstream acceptance. He has extensive experience developing innovative sales and service solutions. At NRIEG, Seth uses this expertise to develop products, expand distribution channels, and grow strong relationships with industry partners. Seth currently works on the Programs Team with a focus on new products and opportunities for our current client base, as well as expanding into mainstream sales channels. Close×Julie Prewitt | SVP, Marketing Julie spent 15 years developing her marketing knowledge at boutique advertising agencies in the Kansas City area, working with NREIG as a client before joining full time in April 2019. She has extensive experience in the insurance and financial services sectors and has touched nearly every aspect of marketing and advertising. She holds a Bachelor’s in Communications from Loyola University New Orleans and volunteers as the district co-chair for the American Advertising Federation’s National Student Advertising Competition, encouraging talent and career development for university students in the four-state area. In her role at NREIG, her team manages branding, advertising, events, digital campaigns, and affiliate programs and plays a key role in product development and the consumer experience. Close×Jacqui Price | EVP, Underwritting Jacqui joined NREIG in 2016 as a Commercial Lines Client Service Representative. Since then, she has focused her skills on building relationships with both clients and underwriters in order help the company grow. She brings the work ethic that she gained growing up on a farm in northeast Missouri to play a key role in the growth of the program. In her role at NREIG, she works closely with carriers and underwriters to bring policy requirements and new policy options to market. Jacqui graduated from University of Central Missouri and volunteers at her church by serving on the Leadership Team and teaching children’s church. Close×Tim Norris | Founder As both an active real estate investor and insurance agent, Tim Norris understood that the investor audience was severely underserved. In 2008, he founded NREIG to specifically address the unique needs of this audience. He continues to invest in single-family homes as well as commercial property, and is a recipient of the R. W. Carstens Humanities Award. Tim resides in the Austin area with his wife and three children. Close Tim Norris Founder As both an active real estate investor and insurance agent, Tim Norris... --- - Published: 2016-12-15 - Modified: 2025-06-26 - URL: https://nreig.com/testimonials/ See what our clients are saying about us “Insurance is often one of the more head-scratching pieces of the lending puzzle and NREIG has been a game changer for us and the Private Lending industry. Everyone should be taking advantage of your products and the knowledge you bring to properly protect Lenders and their borrowers. ” Doug C. ,, California "To be a successful real estate investor, it’s important to align yourself with partners that have you covered in times of need. Insurance is one of those things that is a necessary evil, and doesn’t seem to matter much... until you need it. We work too hard to allow circumstances out of our control to impact our business, and in my time of need, NREIG was there for me. As the founder of FlipNerd, I regularly meet and network with high profile real estate investors, and never hesitate to recommend the good folks at NREIG. " MIKE HAMBRIGHT , DALLAS, FORT WORTH "My experience with NREIG is exceptional. I have many properties insured with them and the customer service that my Client Service Representative – Jessica provides to me is outstanding. I would highly recommend them! " JAKE OSTRICH, MERION, PA "I have worked with NREIG over the last 8 years. They provide not only a great product, but excellent service. Anyone can collect a premium on a policy. NREIG makes sure you are appropriately covered for your exposures, your liabilities are limited, and you are not "over-insured. " When we have had a claim, NREIG has made it an easy process. They have listened to our concerns, and given us a sense of calmness knowing that they are working to our benefit with our carrier. " MISSY MCCALL, HAMILTON, OH "NREIG is what I recommend to real estate investors. They are the only one I know who has taken the time to study and understand the very specific needs of investors. Insurance is a minefield for people who own multiple properties, and NREIG insurance advisors are the only people I’ve met in 25 years that can recommend the right insurance at the best price for the investor or landlord. " VENA JONES-COX, CINCINNATI, OH "I have always found NREIG to meet my needs. My Client Service Representative has demonstrated great customer service skills while meeting my needs in a timely fashion. I plan to continue using this team as part of my strategy going forward as I expand my investment portfolio. " AUSTIN MANN, GUNTERSVILLE, AL "I have always found NREIG to meet my needs. My Client Service Representative has demonstrated great customer service skills while meeting my needs in a timely fashion. I plan to continue using this team as part of my strategy going forward as I expand my investment portfolio. " MICHAEL S. , TN --- --- ## Posts - Published: 2026-01-09 - Modified: 2026-01-09 - URL: https://nreig.com/new-year-smarter-rentals-safety-leases-and-landlord-processes-to-review-now/ - Categories: Investing Tips - Tags: maintenance, safety, tenant damage, tenant protector plan Summary January is a good time for landlords to reassess how their rentals are managed. Reviewing tenant communication, lease language, maintenance processes, and insurance coverage can help reduce risk, improve efficiency, and set expectations for the year ahead. A proactive refresh now can lead to smoother operations and better protection for both properties and tenants. Annual Rental Property Review at a Glance Area of Review What to Revisit Why it Matters Tenant Communication Emergency contacts, maintenance request procedures, safety reminders Faster reporting and resolution help prevent minor issues from becoming bigger losses Lease Language Tenant responsibilities, pet policies, renters insurance requirements Clear expectations reduce disputes and liability risk Maintenance & Vendors Request and repair procedures, preferred contractors Clear steps for reporting maintenance issues and reliable vendors help limit property damage and downtime Insurance Coverage Property limits, liability limits, risk alignment, add-on coverages Ensures insurance policy keeps up with evolving property and liability risks Start the Year Off Strong The start of a new year offers a natural reminder for landlords and real estate investors to step back and evaluate how well their rental properties are set up for success. As properties age, tenants change, and risks evolve; even the most well-run rentals can benefit from a thoughtful review. Taking time to review safety practices, tenant expectations, maintenance workflows, and insurance coverage can help identify gaps before they turn into costly problems. Below are a few key areas worth revisiting as the year begins. Strengthening Tenant Communication Clear communication sets the tone for a successful landlord-tenant relationship. If tenants know how to reach you and when to do so, issues are more likely to be reported early, when they’re easier and less expensive to resolve. Clearly Define Channels of Communication Start by confirming that communication channels between tenants and landlords/property managers are clearly defined. Whether tenants are expected to submit requests through an online portal, email, or by phone, those expectations should be easy to understand and consistently reinforced. Emergency Contacts It is also important that tenants can quickly access emergency contacts and maintenance resources. After-hours procedures, emergency phone numbers, and instructions for urgent issues should be readily available, not buried in paperwork. Safety Reminders The new year is also a good opportunity to reinforce basic safety reminders. Simple communications about working smoke detectors, cooking-related fire risks, or seasonal hazards can help reduce incidents, protecting both tenants and property owners. FAQ: Why is tenant communication important for rental property safety? Clear tenant communication helps ensure maintenance issues and safety concerns are reported quickly. When tenants know how and when to report problems, landlords can address issues early, often preventing severe property damage, injuries, or large insurance claims. Revisiting Lease Language & Tenant Expectations Lease agreements play a major role in risk management, yet they’re often reviewed only when something goes wrong. An annual review helps ensure the lease still reflects how the property is used and what risks may arise. Tenant Responsibilities Clarifying tenant responsibilities for year-round risks is a great place to start. This can include expectations around reporting maintenance issues promptly, using systems and appliances properly, helping prevent seasonal damage, and yard maintenance. Pet Policies Pet policies should also be reviewed to ensure they’re clearly defined and up to date. Well-written pet language can help minimize disputes and address potential damage concerns before they occur. Other Requirements Take time to revisit key lease clauses such as late fees, early lease termination, and renters insurance requirements. Clear language helps set expectations and reduces confusion if enforcement becomes necessary. FAQ: Should landlords require renters insurance? It is recommended that landlords require all tenants to carry a renters insurance policy. Renters insurance requirements should be clearly stated in the lease, including minimum coverage limits and proof of coverage expectations. National Real Estate Insurance Group offers the Tenant Protector Plan® (TPP) as an additional layer of protection against tenant-negligent losses. Refining Maintenance & Operational Processes Behind-the-scenes processes matter just as much as what tenants see. Well-documented maintenance logs and operational workflows can significantly reduce downtime, confusion, and stress when issues arise. Preferred Contractors Review your preferred vendor list to ensure contact information is current, and trusted professionals are available when needed. Having reliable plumbers, electricians, and HVAC technicians lined up can make a meaningful difference during emergencies. Maintenance Procedures It is also worth reviewing how maintenance requests are handled from start to finish. Documented procedures for submitting, prioritizing, and resolving repairs help ensure consistency and accountability. FAQ: Why is it important for landlords to document maintenance procedures? Regular maintenance and documented repair histories can help demonstrate that a property is properly cared for. In the event of a claim, maintenance records may support the claims process by showing that issues were addressed promptly and responsibly. Confirming Insurance Coverage Aligns with Current Risks As properties change, insurance policies should be reviewed regularly to ensure coverage aligns with current values, usage, and exposures. While the start of the year is a natural time for a policy review, many landlords benefit from reviewing their insurance more than once annually. A good rule of thumb is to review coverage any time your property undergoes an occupancy or physical change. National Real Estate Insurance Group recommends a standard check three times per year—at the beginning of the year, at the start of Daylight Saving Time, and again at the end of Daylight Saving Time. These moments serve as practical reminders and often align with seasonal risk changes, property improvements, or shifts in occupancy. FAQ: What insurance policy information should landlords pay attention to? During each review, landlords should confirm that: Coverage limits still align with property values Liability coverage reflects property use and the level of exposure involved Optional or supplemental coverages continue to make sense based on location, property condition, etc. Policy details such as Named Insured, Additional Insured, Lender/Mortgagee, Pay-To Entity, and Mailing Address are accurate and up to date Click here to download our full Semiannual Insurance Policy Review Checklist. A Smarter Start to the... --- - Published: 2026-01-05 - Modified: 2026-01-06 - URL: https://nreig.com/shielding-your-investment-property-from-winter-risks-pt-2/ - Categories: Fire, Seasonal Tips, Water, Weather Events, Winter, Winter Storms - Tags: alarm, burst pipes, fire, fire extinguisher, liability, loss prevention, maintenance, renovation, theft, vacant property, water damage Winter has made its presence known, but there is still time to winterize a vacant home. In part 1, we covered tenant-occupied properties. This time, we focus on vacant homes and active renovation projects. If you’re leaving a property unoccupied this winter, here’s what you need to consider. Read part 1, for ways to protect tenant-occupied investment properties. Summary Winterize your vacant and renovation property to prevent costly damage and liability. Key Steps: Security: Lock doors/windows, set up alarms, use light timers, and maintain the yard. Water Damage: Drain water system. If you can’t, make sure the heat is above 55°F and pipes are insulated. Fire Damage: Regularly check property for hazards, maintain smoke/CO alarms, and provide fire extinguishers. Liability Issues: Repair walkways, promptly remove snow and ice, and remedy any hazards. Theft & Security Security is the foundation of any effective winterization plan for vacant properties and renovation projects. A proactive security strategy not only helps prevent theft, but also reduces the risk of water damage, minimizes fire hazards, and protects you from costly liability claims. Why Security Matters at a Vacant House Evicted tenants may return to damage the property. Trespassers may start unsafe fires for heat. Criminals may use the site for illegal activity. Vacant homes can become party spots during school breaks. Vandals and arsonists target properties that look abandoned. Copper thieves can leave plumbing open, causing catastrophic floods. Prevent Theft in Vacant Properties Lock All Entry Points: Ensure all exterior doors and windows are locked; place wooden dowels in sliding doors. Consider boarding windows for extended vacancies. Set Up Alarms & Signage: Use monitored intrusion, smoke, carbon monoxide, and water leak sensors whenever possible. Install “No Trespassing” signs and other security system signage. Use Light Timers: Set timers on interior lights to turn on during evening hours, creating the appearance of occupancy. Manage Mail and Yard: Regularly drive by the property to remove mail and keep the yard tidy and snow free. Related Reading: 8 Great Ways to Protect Vacant & Renovation Properties Water Damage Water damage is one of the most common and expensive losses we see at NREIG, especially when leaks go undetected in freezing temps. That’s why it’s important to prevent pipes from bursting. When Do Pipes Burst? After a freeze, during the thaw, as water pressure resumes. During theft, when copper is stolen and lines are left open. During renovation, if crews fail to shut water off or test improperly. Prevent Burst Pipes in an Empty House Shut water off at the street and drain the system (toilets, faucets, hose bibbs). At the very least, shut off at the main inside the house so the amount of water damage will be limited to what’s currently in the pipes. Insulate exposed lines, especially on exterior walls, garages, and outdoor spigots. Use hose bibb covers. Heat is essential: Insulation does not create heat. Service HVAC and heat the whole home adequately. If water must be on: Keep thermostat ≥55°F (remember wall cavities are colder than room air). Open cabinet doors under sinks. During cold snaps, slow drip faucets. Instruct contractors and real estate agents to not undo winterization or turn water back on. Keep intruders out to avoid malicious damage. Unoccupied Property Water Risk & Mitigation Scenario Risk Prevention/Mitigation Freeze to Thaw Split pipe leaks when pressure resumes Shut off at street; drain system; heat ≥55°F; open cabinets; drip during cold snaps Theft (copper) Open system floods house Layered security; monitored leak sensors; shut main at street; lock meter box (where permitted) Renovation Crew leaves water on; line fails Written protocols: water off at day’s end; supervisor sign‑off; pressure tests; daily site checks Unattended Vacancy Small leak becomes major damage Smart leak sensors; scheduled inspections; quick-response vendor list; photo documentation Fire Damage After water damage, fires rank as the next most costly loss for NREIG. They pose severe risks, including serious injuries and loss of life. Focus on prevention, early detection, and ensuring safe evacuation. Prevent Vacant House Fires Regularly check the interior of the property for proper heating, tidiness, and safe storage for flammables. Install smoke & CO alarms in all required locations and test monthly. Place fire extinguishers in hallways, kitchen, living room, basement, garage and maintenance per manufacturer's guidelines. FAQ: Are smoke and CO alarms required in a vacant home? Yes. Most local codes and insurance policies require functioning smoke and CO alarms, even in vacant properties, to ensure safety and coverage. Liability Issues Winter increases slip/fall and site hazard risks, even for mail carriers or trespassers. Reduce exposure with proactive maintenance. Winter Liability Checklist for Vacant & Renovation Properties Inspect Walkways, Driveways, and Stairs: ensure all surfaces are in good repair (no uneven pavement or loose or missing handrails). Snow & Ice Removal: Verify it’s done promptly. Tree Maintenance: winter is ideal for structural assessment; remove weak limbs. Parking Rules: Specify guest/crew parking in lease/job contracts to avoid fines and hazards. Hazards to Remedy: Exposed wires or protruding conductors (shock/fire) Missing plates (shock) Broken stairs/loose/missing handrails (injury) Leaky pipes (water damage/mold) Broken windows (safety) Exposed nails (injury) Flickering lights (electrical risk) Mold/mildew (health hazard) FAQ: Can I be sued if a trespasser gets injured on my property? Yes, in many cases. Courts may hold owners responsible for hazardous conditions, so proactive maintenance and security measures are essential. Additional Considerations for Renovation Projects Renovation projects carry unique winter risks that go beyond standard vacancy concerns. Before work begins, set clear safety and security protocols to protect your property, contractors, and timeline. Pre‑job safety plan: Require your GC to submit fire prevention, hot work protocol, daily housekeeping, and emergency contacts before mobilization. Licensing/insurance: Verify all contractors are properly licensed and insured for their scope. Controls & access: Define who can change heat/water/power; set lockout/tagout rules for utilities. Daily closeout: Water off, tools unplugged, trash removed, flammables secured, doors/windows locked. Winterizing a vacant property isn’t just about turning off the water, it’s about creating a comprehensive plan that addresses security, water, fire,... --- - Published: 2025-12-30 - Modified: 2026-01-02 - URL: https://nreig.com/what-is-an-insurance-moratorium/ - Categories: Insurance Education - Tags: back to basics, moratorium When severe weather, hurricanes, wildfires, or other natural disasters are on the horizon, insurance carriers often issue a moratorium. But what does that actually mean for real estate investors? Watch the video below to learn more about the impacts of moratoriums and why it’s crucial for property investors to be prepared ahead of storm season. Transcript: When severe weather or natural disaster is forecast, insurance carriers may issue a moratorium for the affected areas. A moratorium imposes a temporary pause on writing new policies and making changes or adding endorsements to existing ones. For real estate investors, this means you won’t be able to adjust limits, add protections, or place coverage on newly acquired properties in the area until the moratorium is lifted. These temporary suspensions of writing or changing existing policies are typically short-lived and designed to help stabilize the insurance market during high-risk periods. However, if a property’s risks weren’t fully addressed beforehand, a moratorium could leave gaps in protection that can’t be resolved until it’s lifted. National Real Estate Insurance Group identifies the risks your properties face from the start, so you don't have to worry about scrambling for insurance during a moratorium. { "@context": "https://schema. org", "@type": "VideoObject", "@id": "https://nreig. com/what-is-an-insurance-moratorium/#video", "name": "What Is an Insurance Moratorium? Impacts for Real Estate Investors", "description": "When severe weather or natural disaster is forecast, insurance carriers may issue a moratorium—a temporary pause on writing new policies and making changes to existing ones. Learn how moratoriums affect real estate investors, why they’re used, and why preparing ahead of storm season is crucial. ", "thumbnailUrl": , "uploadDate": "2025-06-02T00:00:00Z", "embedUrl": "https://www. youtube. com/embed/P6JpDBs1S0g", "contentUrl": "https://www. youtube. com/watch? v=P6JpDBs1S0g", "publisher": { "@type": "Organization", "name": "National Real Estate Insurance Group (NREIG)", "url": "https://nreig. com" }, "isFamilyFriendly": true, "inLanguage": "en", "potentialAction": { "@type": "WatchAction", "target": }, "mainEntityOfPage": "https://nreig. com/what-is-an-insurance-moratorium/" } --- - Published: 2025-12-30 - Modified: 2026-01-02 - URL: https://nreig.com/insurance-providers-explained-what-every-real-estate-investor-should-know/ - Categories: Insurance Education - Tags: back to basics, insurance agent Not all insurance providers are created equally. Whether you're insuring your first rental or managing a growing portfolio, understanding the difference between captive agents, independent agencies, brokers, and carriers can make or break your coverage. Watch the video below to learn more about each providers’ capabilities and general process. Transcript: When it comes to insuring your investment properties, who you work with matters. But it’s not always clear which type of provider is the right fit. Captive insurance agencies are tied to a single carrier–think larger, brand-name providers. Their agents work directly for that company and can only offer its insurance products. Independent insurance agencies employ licensed agents as well, but they aren’t limited to just one carrier. Their market access and authority to bind policies make it easier to customize coverage for investors. Brokers are licensed intermediaries who shop policies from multiple carriers on behalf of their clients. However, they typically can’t bind coverage themselves and must go through an agent or carrier for approval. Carriers, or insurance companies, are the entities that underwrite and back the policy. They set rates, coverage terms, and pay claims–but most carriers don’t sell directly to consumers. Each type of provider has unique capabilities, but not all offer the same insight, access, or authority. The right insurance partner will help protect your investments with coverage tailored to your needs. National Real Estate Insurance Group acts as an independent agency and program administrator, offering real estate investors specialized coverage through our network of trusted carriers. Explore our comprehensive coverage options today. { "@context": "https://schema. org", "@type": "VideoObject", "@id": "https://nreig. com/insurance-providers-explained-what-every-real-estate-investor-should-know/#video", "name": "Insurance Providers Explained: What Every Real Estate Investor Should Know", "description": "Learn the differences between captive agents, independent agencies, brokers, and carriers—and how each impacts coverage for your rental properties and real estate portfolio. ", "thumbnailUrl": , "embedUrl": "https://www. youtube. com/embed/RAcRn4PvGps", "contentUrl": "https://www. youtube. com/watch? v=RAcRn4PvGps", "publisher": { "@type": "Organization", "name": "National Real Estate Insurance Group (NREIG)", "url": "https://nreig. com" }, "isFamilyFriendly": true, "inLanguage": "en", "potentialAction": { "@type": "WatchAction", "target": }, "mainEntityOfPage": "https://nreig. com/insurance-providers-explained-what-every-real-estate-investor-should-know/" } --- - Published: 2025-12-30 - Modified: 2026-01-02 - URL: https://nreig.com/water-losses-explained-flood-water-damage-and-sewer-backup/ - Categories: Insurance Education - Tags: back to basics, flood, sewer and drain backup, sewer back-up, water damage Not all water losses are the same, and your insurance policy reflects that. From floods to sewer backups, each type of water damage is handled differently by your insurance. Watch the video below for a breakdown of the key differences between Flood, Water Damage, and Sewer Backup coverage—so you know exactly what's covered and what's not. Transcript: Not all water-related property perils are the same, and the way a loss is classified determines how insurance will respond. Being able to distinguish between different water losses is essential to knowing where coverage applies, and where it doesn’t. Flood damage comes from water outside the property—like overflowing rivers, lakes, heavy rain runoff, or storm surge. Because most property policies exclude flood damage, an add-on product is typically required for this loss to be covered. Water damage refers to sudden and accidental events inside the property—like a burst pipe or the overflow of a bathtub. This coverage is typically included on Special Form policies, but it’s always wise to double-check with your particular insurance provider. Sewer Backup occurs when water backs up into the home from a sewer, drain, or sump pump. While standard policies typically exclude this, some providers, like NREIG, offer Sewer & Drain Backup as an optional add-on coverage. Each of these water-related losses are handled differently by insurance, and assuming you have coverage when you don’t puts your investment at risk. Partner with an insurance provider that works directly with real estate investors to identify gaps, recommend applicable add-ons, and build custom coverage packages to protect your properties. { "@context": "https://schema. org", "@type": "VideoObject", "@id": "https://nreig. com/water-losses-explained-flood-water-damage-and-sewer-backup/#video", "name": "Water Losses Explained: Flood, Water Damage & Sewer Backup Coverage", "description": "Not all water losses are the same. Learn how insurance treats flood, sudden and accidental water damage, and sewer backup—and what’s typically covered vs. excluded for real estate investors. ", "thumbnailUrl": , "uploadDate": "2025-10-06T00:00:00Z", "embedUrl": "https://www. youtube. com/embed/8O0LxAHj-X8", "contentUrl": "https://www. youtube. com/watch? v=8O0LxAHj-X8", "publisher": { "@type": "Organization", "name": "National Real Estate Insurance Group (NREIG)", "url": "https://nreig. com" }, "isFamilyFriendly": true, "inLanguage": "en", "potentialAction": { "@type": "WatchAction", "target": }, "mainEntityOfPage": "https://nreig. com/water-losses-explained-flood-water-damage-and-sewer-backup/" } --- - Published: 2025-12-08 - Modified: 2025-12-23 - URL: https://nreig.com/landlord-checklist-leasing-your-first-rental-property/ - Categories: Checklists - Tags: maintenance, safety, tenants Leasing your first rental property can feel overwhelming, but the right preparation makes all the difference. Use this checklist to ensure your property is safe, compliant, and properly protected before welcoming your first tenant. Property Prep & Safety Verify smoke alarms and CO detectors are properly installed, tested, and unexpired. Ensure fire extinguishers are accessible and unexpired. Confirm all doors and windows open/close properly and lock securely. Inspect all steps, handrails, decks, and porches for stability. Check under sinks, around toilets, and near water heaters for leaks. Replace HVAC filters and schedule professional servicing if needed. Confirm sump pump and any backup systems are functional. Clear outdoor gutters and downspouts to ensure proper drainage. Reduce Risk of Loss Install smart monitoring tools where appropriate (water leak sensors, smart thermostats, security cameras on exterior, etc. ). Ensure exterior lighting covers pathways and entrances. Assess indoor and outdoor trip hazards (loose pavers, uneven flooring, etc. ). Ensure property can endure weather in all seasons: Winterize as needed—insulate pipes, seal drafts, set minimum heat temperatures in lease. Check roof, siding, and windows for damage that could allow for water intrusion during storms. Trim trees and remove dead branches that could fall during high winds, heavy snowfall, or ice. Legal Compliance & Leases Confirm that the property meets habitability standards. Verify your lease is compliant with state and local landlord-tenant laws. Set rental rate based on market comparisons and property condition/location. Include/review pet policies in the lease and confirm deposits/fees align with local laws. Define lease terms: rent due date, late fees, security deposit amount, lease duration, and renewal process. Establish clear maintenance responsibilities (who handles lawn care, snow removal, air filter changes, etc. ). Provide tenants with emergency contact information and maintenance request procedures. Outline rules for guests, smoking, parking, etc. Collect the first month’s rent and deposit before handing over the keys. Tenant Screening & Application Use a consistent screening process for all applicants. Run credit, criminal, and eviction history checks. Verify income and employment. Contact previous landlords for references. Document approval or denial decisions and keep records. Move-In Process Conduct a move-in walkthrough with the tenant. Provide a move-in checklist for the tenant to note existing conditions. Provide appliance manuals or a quick guide for HVAC, water shutoff, and breakers. Confirm keys, fobs, and garage remotes are working and accounted for. Insurance Considerations Maintain appropriate insurance coverage based on your occupancy type and physical risk exposure. Confirm that you have the liability limits needed for tenant-related exposures. Consider optional protections based on property risks: Earth Movement, Flood, Tenant Protector Plan, Service Lines, etc. Ongoing Responsibilities Schedule seasonal maintenance (HVAC, gutter cleaning, pest control). Encourage tenants to maintain renters insurance. Keep documentation of all repairs, updates, and tenant communication. Update your insurance policy with the correct occupancy status of the property as tenants move in/out. Download the Landlord Checklist: Leasing Your First Rental Property. --- - Published: 2025-12-08 - Modified: 2025-12-08 - URL: https://nreig.com/unique-insurance-challenges-for-log-cabin-rentals/ - Categories: Coverage Options - Tags: construction, fire, log cabin, maintenance, natural disasters Summary Log cabins are insurable, but their natural materials, remote locations, and higher exposure to fire, moisture, and maintenance issues make them riskier (and often more expensive) to insure than traditional investment properties. Real estate investors need log cabin insurance that accounts for its unique exposures, seasonal occupancy, and specialized construction needs. NREIG offers CabinArmor, a specialized insurance program designed specifically to protect investment-use log cabins. Evaluating & Insuring Log Homes Log cabins can be a popular choice for real estate investors thanks to their charm, rental appeal, and strong performance as vacation homes. However, their construction materials, remote location, and maintenance requirements make them fundamentally different from standard investment homes. Because of this, it is crucial that investors carry an insurance policy designed to match the risks that come with owning a log home used as a rental. Log cabin insurance is specialized property and liability coverage for dwellings built from horizontal log walls, with corner notching, chinking, and (typically) a gabled roof. Unlike traditional frame homes, log structures face unique exposures related to moisture, fire, wildlife, and the natural settling of timber materials. For investment properties, your coverage must also account for tenant-related risks, seasonal occupancy, and periods of vacancy. Because of these factors, insurers assess a log cabin’s risk differently than typical dwellings. While yes, log cabins are insurable, they require carriers or programs familiar with the risks of log construction and the realities of operating the property as a rental. This is where their unique risks come into play. Unique Risks Associated with Log Cabins Natural Disasters Many cabins are located near areas known for elevated exposure to natural disasters, like forests, lakes, or mountains. Insurers pay particular attention to properties in these locales as they present risks such as: Wildfires (especially in heavily wooded regions) Falling trees Windstorms and hail Named storms Winter storms (including ice dams and heavy snow loads) Insects and rodents Because repair and reconstruction often require specialty contractors and materials, loss severity can be higher for log structures than for traditional homes. Maintenance Challenges Log homes require consistent upkeep to remain structurally sound. Investors who own seasonal or short-term rental cabins must be especially mindful of ongoing maintenance. Key concerns include: Moisture intrusion leading to mold or rot Cracking or settling of logs Insect damage from wood-infesting pests Wearing of stain/sealant Insurance excludes coverage for typical wear-and-tear, so proper maintenance is essential for preserving insurability and preventing non-covered losses. Fire Hazards While solid log walls can perform well under heat, the overall fire risk for cabins is still higher due to: Location in wooded or wildfire-prone areas Remoteness leading to longer firefighter response times Use of wood-burning appliances by tenants or guests Accumulation of dry brush surrounding the cabin Because fire can lead to a total loss, it is a major factor influencing both the availability and the cost of log cabin insurance. Factors Affecting the Cost of Log Cabin Insurance Construction Materials Specialized craftsmanship, natural logs, and custom finishes increase the reconstruction cost of a log home. When damages to the property occur, repairs may require: Hard-to-source logs Skilled labor with log home-building expertise Extended repair timelines These factors contribute to higher log cabin insurance premiums compared to standard frame homes. Location and Climate As discussed previously, cabin location significantly impacts premiums. Insurers consider the following factors when determining rates: Rural or remote locations Proximity to fire hydrants and stations Wildfire scores and wind/hail activity Mountainside or lakeside geography Severe winter weather patterns Secondary Residence vs. Primary Residence Because investment cabins are not owner-occupied, insurers evaluate them differently from primary residences. Occupancy type affects both risk and pricing for many reasons. For one, seasonal homes and short-term rentals may experience damage that goes unnoticed for a longer period of time, and the longer it sits with said damage, the worse it will get. These properties may also sit vacant for extended periods of time, increasing the risk of fire, theft, and water damage. Making Informed Insurance Choices Log cabins come with unique risks tied to their construction materials, location, and use as rental properties. Understanding your risk factors and how they influence your coverage options and cost helps protect both your property and income potential. For log cabins used as investment properties, NREIG offers CabinArmor, a specialized insurance solution designed to meet the specific needs of log homes. Click here to learn more about CabinArmor. Further Reading: Insuring Log Cabins with National Real Estate Insurance Group --- - Published: 2025-12-05 - Modified: 2025-12-05 - URL: https://nreig.com/winter-risks-part-1/ - Categories: Fire, Seasonal Tips, Water, Weather Events, Winter, Winter Storms - Tags: cooking fire, cooking safety, fire, fire extinguisher, heating equipment, liability, safety, smoke alarms, stovetop firestop, water, water damage, winter While some regions of the United States have already received their first snows and freezes, it's never too late to start prepping your properties for winter risks. In this two-part series, we'll look at the most common winter perils and how to mitigate damage. Here, in part 1, we address ways to protect tenant-occupied properties. Read part 2, for ways to protect vacant properties. Summary Winterize your tenant-occupied rental property to prevent costly damage and liability. Key steps: Security: Lock doors/windows, use light timers, and have mail picked up. Frozen Pipes: Insulate pipes, check HVAC, remind tenants to open cabinets, drip faucets, and keep heat above 55°F. Fire Safety: Maintain smoke/CO alarms, provide extinguishers, install StoveTop FireStop. Heating Safety: Service HVAC, change furnace filters, allow only safe space heaters, inspect chimneys. Liability: Repair walkways, define snow removal and parking rules, and require tenants to report hazards. Protect your investment and keep tenants safe this winter. Theft & Security The threat of theft is higher with unoccupied properties than occupied ones. However, that doesn't mean you shouldn't prepare your tenants. During the holiday season, burglaries are on the rise. Thieves see an opportune chance to break in when people are visiting family out of town. Plus, more gifts and cash are lying around during this time for them to easily steal. Prevent Holiday Theft in Rental Properties Protect your tenants and property from burglary during the winter and holiday season. Share these security tips: Lock All Entry Points Ensure all exterior doors and windows are locked. Add extra security by placing a wooden dowel in sliding doors and windows to prevent forced entry. Keep Interiors Private Close blinds and curtains so burglars cannot see inside or determine if the property is vacant. Use Light Timers Set timers on interior lights to turn on during evening hours, creating the appearance of occupancy. Manage Mail and Yard Ask tenants to have a trusted neighbor collect mail and maintain lawn care when they are away. TipFor more tips how to winterize your rental property, check out our comprehensive landlord winter maintenance checklist to keep your rentals safe and compliant. Water Damage NREIG has seen frozen pipes become one of the most frequent winter claims for investment properties. Aside from damaging a tenant's belongings, a pipe burst can ruin sheetrock, trim, and flooring and often leads to mold growth if the damaged areas are not quickly dried out. Following these steps can help you avoid costly water remediation. Prevent Frozen Pipes in Rental Properties Insulate Pipes Focus on pipes along exterior walls. Don’t forget water lines leading to garage sinks and outdoor hoses. Use hose bib covers to protect outdoor spigots. Check the Heat Insulation slows heat loss but does not create heat. Ensure your HVAC system works properly and heats the entire house adequately. If you haven’t had an annual HVAC check-up, schedule it before technicians get busy. Remind Tenants To: Open cabinet doors under sinks to let warm air circulate. Leave faucets dripping slowly to keep water moving and reduce freezing risk. Keep heat above 55°F. FAQ: What happens if pipes burst? First, shut off the main water supply and unplug any electrical devices near the affected area. Open faucets to drain the system, then document all damage with photos and videos for your insurance claim. Remove standing water and begin drying immediately to prevent mold and call a licensed plumber for professional repairs. Note: Check your coverage, as not all insurance policies cover water damage. Fire Damage According to NREIG claim data, heating and cooking fires are among the most common and costliest winter losses to investment properties. Fires often lead to serious damages and injuries, making rental fire safety a top priority for landlords. For this reason, fire prevention is essential to protect both your property and your tenants. Cooking Fires According to the National Fire Protection Association, more cooking fires occur on Thanksgiving than on any other day of the year. Following close behind are Christmas Eve and Christmas Day. Entertaining guests can take a cook's attention away from the large meal they are preparing, which is most often how a cooking fire occurs. How to Prevent Cooking Fires Regular Inspections Check for unreported maintenance issues. Ensure tenants do not create fire hazards (e. g. , clutter near heat sources). Smoke & Carbon Monoxide (CO) Alarms Verify alarms are working and not disabled. Smoke Alarms: Change batteries twice a year and replace units every 10 years. CO Alarms: Essential for safety. CO is odorless, colorless, tasteless (“silent killer”). Fire Extinguishers Place in common areas like hallways, living room, kitchen, basement, garage. Follow manufacturer maintenance guidelines. Ensure tenants know how to use them. StoveTop FireStop Install above stovetop burners. Automatically deploys fire suppression powder during a stovetop fire and emits a loud “pop” to alert the cook. Heating Fires Many fires we see in occupied properties are related to tenants using space heaters or other alternative heating methods to stay warm in their homes. Fire Safety Tips for Landlords Maintain Adequate Heat Ensure rentals meet local minimum temperature requirements for habitability. HVAC Maintenance Inspect HVAC systems before each heating season and schedule professional service if needed. Furnace Filters Change filters monthly. Clarify responsibility (tenant or landlord). Ban Oven Heating Include in the lease: No heating with ovens. Educate tenants on the dangers of carbon monoxide poisoning and fire risk. Space Heater Rules Allow only newer models with tip-over safety shutoffs. Keep 3 feet of clearance around heaters. Never place near blankets, drapes, and other flammable items Never leave it unattended. Chimney Safety Inspect chimney annually before use. If not inspected, do not use the fireplace. Use a screen and maintain 3-foot clearance from rugs and flammable items. FAQ: Which is safer: electric vs gas heating? Both electric and gas heating have safety considerations. Electric heating (like baseboards or space heaters) eliminates the risk of carbon monoxide but can pose a fire hazard if heaters are placed near flammable items or left... --- - Published: 2025-10-30 - Modified: 2025-10-30 - URL: https://nreig.com/semiannual-insurance-policy-review-checklist/ - Categories: Checklists - Tags: policy reviews It’s best practice to review your insurance documents for accuracy at least twice a year (many real estate investors use daylight saving time as a reminder to do so). Of course, any time major changes are made to your property or account information, your policy must be reviewed and updated as soon as possible. Use this checklist to review your insurance details and ensure coverage reflects current property ownership, use, conditions, and risk exposures. Policy Details Named Insured – Verify all entities, LLCs, and ownership structures are properly listed. Additional Insureds – Ensure all partners, management companies, and lenders are included as needed. Lender/Mortgagee Information – Check that the listed lender and loan number are accurate. Mailing & Email Address – Confirm your mailing and email addresses are up to date to ensure you receive important policy correspondence and claim payments without delay. Pay-To Entity – Double-check that the correct bank account or entity is listed for claim settlements. Property Information Property Address – Verify the full address is correct for each insured location. Property Use/Occupancy - Confirm each property’s status is listed accurately: Vacant, Tenant-Occupied, Under Renovation, New Construction, Short-Term/Vacation Rental. Property Type – Check that the right classification is selected: Single-Family Home, Condominium, Mobile/Manufactured Home, Log Cabin, Vacant Land. Settlement Method, Coverage & Limits Settlement Method – Does your current settlement method (Actual Cash Value or Replacement Cost) still align with your strategy if you were to experience a significant property loss? Coverage Form – Review what perils your property is insured against under the selected coverage form (Basic or Special). Liability Limits – Review your liability coverage. NREIG recommends a minimum of $1MM per occurrence, $2MM aggregate for investors. Coverage Limits – Evaluate if your property and contents coverage limits reflect current replacement costs. Exclusions – Review excluded causes of loss. If you’ve identified new exposures (e. g. , flood, theft, etc. ), as about adding coverage to avoid expensive out-of-pocket losses. Deductibles – Ensure your deductibles align with your financial comfort level. Could you afford to pay your deductible today? Would raising it lower your premium enough to be worthwhile? Downloadable Semiannual Insurance Policy Review Checklist. --- - Published: 2025-10-29 - Modified: 2025-12-23 - URL: https://nreig.com/premises-vs-personal-liability-insurance-a-guide-for-real-estate-investors/ - Categories: Coverage Options, Insurance Education - Tags: liability coverage, personal liability, Premises liability Summary Personal liability insurance won’t cover your risk as a rental property owner. Premises liability insurance protects real estate investors from claims related to injuries or damages that occur on their rental or investment properties. Real estate investors should carry at least $1MM per occurrence / $2MM aggregate in premises liability coverage to properly protect themselves and their business. Understanding Liability Insurance As a property owner, you have certain legal responsibilities to ensure the safety of visitors, both invited and uninvited. Liability insurance helps protect you financially if someone is injured or the property is damaged due to conditions on your premises or actions you’re legally responsible for. For real estate investors, understanding the difference between personal liability and premises liability insurance is key to ensuring the right coverage is in place. What is Personal Liability Insurance? Personal liability insurance protects individuals from claims resulting from injuries or damages they may cause to others. It is commonly included in homeowners insurance policies, and covers incidents like: A guest slipping on an icy driveway at your home Accidentally damaging someone else’s property Dog bites or other related injuries to another party caused by your pet This coverage is intended to protect you, not your property or operations as a business owner, landlord, etc. It reflects your personal responsibility in causing harm. What is Premises Liability Insurance? On the other hand, premises liability insurance is tied to incidents that may occur at a specific location, typically a rental or investment property. It protects property owners from claims of injury on the premises due to unsafe conditions. Examples may include: A tenant or guest tripping over broken steps A delivery driver injured by falling on an icy driveway A public utility worker on the property injured due to poor lighting This coverage is a must-have for landlords and real estate investors who are responsible for maintaining safe conditions on their properties. Does Personal Liability Insurance Cover Rental Property Owners? NO. A personal liability policy does not extend to your responsibilities as a rental property owner. For those exposures to be covered, you need a premises liability policy. Does Premises Liability Insurance Cover Rental Property Owners? YES. Premises Liability is designed to protect non-owner-occupied property owners. NREIG’s Premises Liability includes coverage for: Payment of bodily injury or property damage for which you are legally obliged to pay Medical expenses for the injured party Carbon monoxide pollution A sublimit for canine liability to protect you in case of damages caused by a dog on your property Defense costs such as counsel, court fees, and judgements In addition to a Property and Liability coverage package, NREIG also offers liability-only coverage for real estate investors. We cannot stress enough the importance of carrying at least a premises liability policy for any property you own. Key Differences What Are the Differences Between Premises and Personal Liability? Personal Liability Premises Liability Who/What Coverage Is Designed For Owner-occupied homes (you reside in the home as your primary residence) Non-owner-occupied properties (rentals, flips, vacant, under renovation, etc. ) Primary Purpose Protects you and others who live in the home against personal negligence at your primary residence or off-premises incidents Protects you as the property owner/landlord from claims of injury or damage arising out of the ownership, maintenance, or use of the property Example of Coverage A guest slips and falls at your personal residence A tenant or guest is injured due to property conditions (broken railing, cracked walkway, loose deck boards, etc. ) Coverage Location Limited to your personal residence and personal activities Applies specifically to the insured and any additional insureds with liability exposure related to the rental, vacant, or renovation property Tenant Injuries Not covered – tenants are not considered guests Covered for injuries to tenants or their guests caused by conditions at the property when owner liability is determined Business Use Consideration Homeowners policies exclude business pursuits, which can include renting your property for income Recognizes rental activity as an exposure and provides appropriate liability coverage Coverage Gaps for Investors No protection for claims arising from rental activity or investment property ownership Coverage tailored to non-owner-occupied risks Best Suited For Primary homeowners with no rental or investment activity on the premises Landlords and real estate investors of tenant-occupied, vacant, renovation, or new construction properties Real-World Scenarios Personal Liability Example You accidentally knock over a neighbor’s expensive sculpture while visiting their home. Your personal liability insurance would cover the damage. Premises Liability Example A tenant falls down stairs due to a loose handrail at your rental property and sues you for negligence. Your premises liability insurance would respond. Determining Coverage Needs How Much Premises Liability Insurance Do I Need? NREIG recommends maintaining premises liability limits at no less than $1 million per occurrence, $2 million aggregate, with higher limits available as well. Real Estate Investors and Landlords NEED Premises Liability Coverage Understanding the differences between personal and premises liability insurance will help you protect your investments properly and avoid costly out of pocket lawsuits. While personal liability insurance covers you as an individual, premises liability insurance is the only coverage suitable for your risks as an investment property owner. { "@context": "https://schema. org", "@type": "ItemList", "@id": "https://nreig. com/premises-vs-personal-liability-insurance-a-guide-for-real-estate-investors/#liability-comparison", "name": "Differences Between Premises and Personal Liability", "description": "Side-by-side comparison of Personal Liability versus Premises Liability for real estate investors and landlords. 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", "additionalProperty": } } ] } --- - Published: 2025-10-23 - Modified: 2025-11-12 - URL: https://nreig.com/10-tips-to-eliminate-holiday-liabilities/ - Categories: Fall, Fire, Seasonal Tips, Tenant Relations, Water, Winter, Winter Storms - Tags: burst pipes, cooking, cooking fire, cooking safety, fire, heating, holiday, liability, safety, seasonal maintenance, snow, trees, winter The holiday season can increase risks for landlords, especially when tenants are hosting guests or cooking more often. Fires, slip-and-falls, and other accidents are more common this time of year. To help prevent property damage and avoid liability issues, focus on these 10 areas. Summary The holiday season brings increased risks for property owners—from fires and slip-and-falls to parking issues and burst pipes. To protect your investment and reduce liability, focus on these key areas: Inspect Trees – Prevent storm damage and tenant disruption with annual tree checks. Know Parking Laws – Include clear parking rules in leases and send reminders before holidays. Clear Walkways – Assign snow/ice removal responsibilities and maintain proper liability coverage. Check the Roof – Repair damaged shingles and insulate attics to prevent ice dams. Promote Ladder Safety – Share tips to prevent injuries from holiday decorating. Practice Safe Heating – Maintain HVAC systems, inspect chimneys, and test detectors. Prevent Kitchen Fires – Share NFPA cooking safety tips and consider StoveTop FireStop. Schedule Inspections – Catch issues early and prevent pest intrusions. Decorate Safely – Avoid overloaded outlets and flammable decor. Protect Plumbing – Maintain water heaters, insulate pipes, and drain systems in vacant units. 1. Inspect Trees Proactive tree inspection can prevent costly damage and tenant disruption. While hiring a certified arborist may seem expensive, the cost of storm-related damage and the potential need to relocate tenants can be significantly higher. Because tree trimming is hazardous, professional help is strongly recommended. How to Identify At-Risk Trees According to https://treecaretips. org, watch for these warning signs that a tree may pose a safety risk: Dead or hanging limbs in upper branches that could fall and cause injury or property damage Cracked stems or branch forks that may lead to sudden structural failure Hollow or decayed areas, or mushrooms growing from bark, indicating internal rot Peeling bark or large trunk wounds, suggesting weakened structure Uprooted or fallen trees leaning on others, creating pressure and instability Tight, V-shaped branch forks, which are more likely to break than U-shaped ones Heaving soil at the base, a sign of compromised root systems Tips for Maintaining Tree Health Tree health maintenance is simple with guidance from https://treesaregood. org: Inspect trees annually for abnormal leaf or bud growth, reduced twig development, and signs of crown dieback. Prune dead, diseased, or insect-infested branches to prevent spreading and improve structure. Apply mulch around the base to regulate soil temperature and reduce weed competition. TipWhile DIY tree trimming may seem cost-effective, hiring a certified arborist reduces liability and risk. 2. Know Local Parking Laws Understanding local parking laws is essential for maintaining safety and avoiding fines. Research your state and city regulations to identify areas where parking is prohibited or considered unsafe. Your local Department of Transportation is a valuable resource to help clarify parking rules. To prevent confusion and ensure compliance, include clear parking guidelines in your lease agreement. Specify where tenants and their guests are allowed to park, especially for extended stays. Reinforce these rules with a friendly reminder before busy holiday periods to encourage cooperation and avoid violations. 3. Clear Walkways of Snow and Ice Slip-and-fall incidents are among the most common liability claims at investment properties. To protect yourself, ensure your insurance coverage includes adequate liability limits. National Real Estate Insurance Group (NREIG) typically recommends starting liability limits at investment properties with $1 million per occurrence and $2 million aggregate. However, insurance is only part of the solution. Preventive maintenance plays a critical role in reducing the likelihood of injuries. Clearly outline in your lease who is responsible for clearing sidewalks, steps, and driveways of snow and ice. If this responsibility falls to your tenant, educate them on the importance of timely snow and ice removal to avoid accidents and potential legal claims. 4. Maintain the Roof Before winter sets in, inspect your roof for buckling or broken shingles, which can allow water to seep in and freeze, leading to costly damage. To prevent ice dams, ensure your attic is properly insulated to maintain consistent roof temperatures and reduce snow melt and refreeze cycles. Five Signs of Ice Dams According to Ice Dam Guys, these are five ways to identify an ice dam: Icicles of any shape or size along the edge of your roof and/or gutters Water dripping down OR ice forming on the exterior surface of the property Ice has developed along the overhangs of the roof OR gutters are filled with ice Icicles are forming or water is dripping from the underside of your roof Water is penetrating the interior of the property (look at walls, ceilings, and windowsills) 5. Encourage Tenants Use Ladders Safely Hanging outdoor lights along the roofline is a popular holiday tradition, but it comes with risks. Each year, over 90,000 people are treated in emergency rooms for ladder-related injuries, according to the Consumer Product Safety Commission. Providing safety tips before the holiday season begins can help prevent accidents and keep your property liability-free. Basic Ladder Safety The American Ladder Institute provides ladder safety tips, including: Don’t use ladders in high winds. Wear clean slip-resistant shoes. Make sure the ladder is the right size for the job. Place ladder on firm, level ground. Don’t place ladders in front of doors that can open toward the ladder. Use the three point-of-contact climb. 6. Prevent Winter Heating Fires According to the National Fire Protection Association, more house fires occur in December, January, and February than any other time of year—many caused by heating appliances. Winter Fire Safety Tips Schedule HVAC and Chimney Inspections: Have heating systems and chimneys professionally inspected and cleaned before winter to prevent fire hazards like dust buildup and creosote. Test Smoke and Carbon Monoxide Detectors: Ensure all detectors are working, have fresh batteries, and are placed in key areas like bedrooms and common spaces. Discourage Unsafe Heating Practices: Educate tenants on the dangers of using stoves or space heaters improperly and ensure they have access to reliable heat. Promote Safe Use of... --- - Published: 2025-10-17 - Modified: 2025-10-17 - URL: https://nreig.com/insuring-log-cabins-with-national-real-estate-insurance-group/ - Categories: Coverage Options - Tags: log cabin In our Program, log cabins are defined as homes built from horizontal log walls, with corner notching, chinking, and a gabled roof (preferred). Log homes are typically rustic or pioneer-style design and found in rural or wooded areas. Due to their unique construction materials and typical remote location, log cabins come with unique risks that tend to affect coverage availability and cost. In response to these challenges, NREIG developed CabinArmor, a comprehensive property and liability insurance package specifically for non-owner-occupied log homes. What does CabinArmor cover? CabinArmor seamlessly integrates with NREIG's monthly reporting structure, offering the same flexibility and convenience you rely on for the rest of your portfolio. Whether your log home is actively rented out, vacant, or undergoing cosmetic renovations, our log home insurance provides coverage for both you and your property. Dwelling Dwelling coverage protects against sudden and accidental direct physical damage to the property. For instance, if severe weather were to cause a tree to fall on the roof, resulting in structural damage, you may be covered for the cost of repairs. National Real Estate Insurance Group offers Basic and Special Form coverage for log cabins homes. Covered perils may include, but are not limited to: Fire Lightning Windstorm and Hail Explosion Smoke Aircraft and Vehicles Riot or Civil Commotion Volcanic Action Sprinkler Leakage Vandalism Malicious Mischief Premises Liability As you may know, when you own and rent out a log home, you open yourself up to liability risks. A Premises Liability policy offers you protection against liability claims that can arise from incidents on your property. Examples may include: If someone were to slip and fall on your property If one of your tenant’s dogs were to bite someone on your property If your tenant suffers medical issues from a carbon monoxide leak *Medical expenses are included for third parties. Our liability options start as low as $7 per month, per property, and come with a $1MM per occurrence, $2MM aggregate limit of liability. What deductible is right for a log cabin rental? Your property deductible is the amount that is withheld from your insurance payout for a claim. You don’t need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you wouldn’t ever file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our liability insurance has no deductible. CabinArmor offers property deductible amounts of $2,500, $5,000, and $10,000. *Locations insured with CabinArmor must also carry a Tenant Protector Plan® policy. Wildfire scores may impact coverage availability. The property must have working utilities, including electricity and water, to be eligible for coverage. If you have questions regarding insurance for log cabins, feel free to contact an NREIG Sales Advisor or your Client Service Advisor. --- - Published: 2025-09-26 - Modified: 2025-10-06 - URL: https://nreig.com/fix-and-flip-vs-buy-and-hold-which-real-estate-investment-strategy-is-right-for-me/ - Categories: Investing Tips - Tags: real estate investing strategies There’s no single path to success in real estate, and the right investment strategy depends on what you’re working toward. Two of the most common approaches, fix and flip and buy and hold, can both deliver strong results, but they do so in very different ways. One focuses on quick profits and active involvement, while the other builds wealth slowly through steady income and appreciation. This guide will help you weigh the pros and cons of each approach and determine which one best fits your goals, experience, and available resources. Know the Basics Fix-and-flip properties are typically purchased at below-market prices, renovated, and sold for a profit—all within a few months. Those who pursue this strategy typically seek quick, upfront gains. Hands-on investors who enjoy completing renovations themselves, or those with trusted contractors, are ideal for this strategy. Because these projects require purchasing the property and funding renovations before resale, substantial upfront capital is often necessary. Buy-and-hold properties are purchased with the intent to rent out long-term, generating steady passive income while the property appreciates. Investors who pursue this strategy are usually seeking long-term, buildable wealth and reliable cash flow. These investors are comfortable managing tenants and property maintenance themselves, or outsourcing said responsibilities to a trusted property manager. Ask Yourself... Are you seeking fast returns or slow, steady growth? Are you excited by renovation projects or more interested in relatively hands-off passive income? Evaluate Your Lifestyle, Goals & Risk Tolerance The right investment strategy for you largely depends on your goals and appetite for risk. The fix-and-flip process is often appealing to investors who want to see results quickly and are comfortable taking on higher risk in exchange for fast returns. Because profits depend on how efficiently a property is renovated and sold, the financial outcome can fluctuate significantly based on market conditions and project execution. The buy-and-hold method is generally considered more stable and predictable. While returns are slower, they’re also steadier, with rental income and property appreciation building wealth over time. This strategy is often more appealing to investors focused on consistent cash flow and long-term financial security. Ask Yourself... Do you feel comfortable navigating short-term market fluctuations? Are you comfortable with higher-risk, quick-reward investments, or would you rather focus on building wealth gradually over time? Time Commitment & Lifestyle Fit Each property investment strategy requires a different level of involvement and timeline. Fix-and-flip projects require concentrated, hands-on work over a shorter period. Expect to spend significant time managing renovations, coordinating contractors, and monitoring project budgets and timelines. Buy-and-hold properties involve a long-term commitment but less day-to-day intensity. Investors must plan for ongoing responsibilities like tenant relations, property maintenance, and potential vacancy periods, but the workload tends to be steadier and more predictable. Ask Yourself... Do I have the time and bandwidth for an intensive, short-term project? Am I comfortable with the ongoing responsibilities of property management and tenant relations? Financial Considerations Your financial situation also plays a significant role in determining which investment strategy makes sense for you. Fix-and-flip projects require substantial upfront capital to cover both the purchase of the home and renovation costs, and profits can be heavily influenced by taxes on short-term gains. However, when executed well, flips can deliver return on investment much faster than rentals. Buy-and-hold properties typically require less upfront capital but require planning for mortgage payments, maintenance expenses, and potential vacancies. The trade-off is a more stable income stream and the potential for long-term equity growth. Ask Yourself... Do you have enough upfront capital to comfortably cover a purchase and renovation even if costs run higher than expected? Can you sustain ongoing expenses like mortgage payments, maintenance, and property management if a rental sits vacant? The Best of Both Worlds The choice between fix and flip or buy and hold doesn’t have to be either/or. In fact, some investors use flips to build capital quickly, then reinvest those profits into rental properties that generate passive income. Others maintain a mixed portfolio, selling some properties for immediate profit while holding others for long-term appreciation. No Matter the Strategy, Protect Your Investment Whether flipping a property for a quick profit or holding it as a long-term rental, proper coverage is crucial. Tailored insurance policies for investment properties help protect your interest against unexpected loss, damage, or liability claims. Learn more about how NREIG provides insurance solutions for every type of property. --- - Published: 2025-09-22 - Modified: 2025-09-22 - URL: https://nreig.com/life-saving-tools-and-methods-to-protect-your-tenants-from-a-fire/ - Categories: Fire, Seasonal Tips Aside from regular inspections, smoke alarms, fire suppression tools, and emergency planning are crucial components in protecting your tenants from a fire. These life-saving measures can cut potential fire deaths in half. Alarms & Fire Suppression Tools Smoke alarms and CO detectors The importance of maintaining smoke alarms and carbon monoxide detectors in working order inside your rental properties cannot be overstated. The National Fire Prevention Association finds that the presence of functioning smoke alarms cuts the risk of home fire deaths in half. CO detectors are the only reliable safeguard against carbon monoxide, as this gas is colorless, odorless, and tasteless. Alarms should be placed inside each bedroom, outside each sleeping area, and on every level of the home, including the basement. On levels without bedrooms, alarms should be placed in the living room or den and near stairways. Installing interconnected alarms is recommended by the NFPA because when one alarm sounds, they all sound, alerting occupants no matter where they are located in the house. Alarms and detectors should be tested monthly, and standard batteries should be changed at least twice a year – Daylight Saving Time is a good reminder to do so. Some newer alarms come with five or 10-year batteries, but they still need to be tested regularly. The detectors themselves will also need to be changed out periodically – the typical life of a detector is 10 years. Smoke alarms and CO detectors are often required by city code, so be sure you are following any local guidelines. Lastly, many insurance policies require working smoke detectors as a “protective safeguard” in order to honor a fire claim, so be sure to review your policy and ask your agent if you have questions. Fire extinguishers Fire extinguishers can help put out small fires before they become uncontrollable, so providing them in your rentals is a must. Just be sure to educate your tenants on how to properly use them prior to moving in! There are five classes of extinguishers, but ABC or BC are multi-purpose and can put out a variety of fires, so they may be the best choice for this scenario. Fire Extinguisher Classes: A: ORDINARY MATERIALS – WOOD & PAPER B: FLAMMABLE LIQUIDS C: ELECTRICAL FIRES D: METALS K: COOKING OILS Fire Extinguisher Placement In the kitchen* In rooms where sources of heat such as fireplaces, room heaters, or pellet stoves are located* Each floor of the home, including the attic and basement The garage Bedrooms *Keep extinguishers a safe distance away from heat sources. StoveTop FireStop This inexpensive fire suppression device can help put out a stove top fire before the cook has time to grab a lid or standard extinguisher. StoveTop FireStop products are positioned above the stove and the flames activate a small fuse on the bottom of the container, which then releases extinguishing powder down onto the stove. There is also a loud “pop” when the container opens which can alert the distracted cook so they can return to the kitchen to turn off the burners. You can learn more about StoveTop FireStop here. Fire Escape Plans & Practice Drills You know the floor plan of your property better than anyone. You probably looked at it carefully before your purchase—so share what you know with your tenants. Identify two escape routes out of each room, if possible, and advise your tenants to keep these escape routes unblocked when placing furniture. They may roll their eyes at your “Safety Sam” ways, but this advice may save their life! No one expects you to run fire drills for your tenants, but you can lead them to information about fire escape planning for their safety and the safety of your property. The NFPA has many resources on its website. Click here for their page on Basic Fire Escape Planning. --- - Published: 2025-08-01 - Modified: 2025-08-01 - URL: https://nreig.com/property-insurance-moratoriums-key-information-for-real-estate-investors/ - Categories: Insurance Education - Tags: moratorium When severe weather or a natural disaster is forecasted, insurance carriers may issue a moratorium. These temporary suspensions may disrupt your ability to protect your investments when they need coverage most, especially if proper coverage wasn’t already in place or if you’re in the midst of acquiring a new property. It's important to know that moratoriums do not cancel or override existing coverage, but they do prevent policyholders and their insurance providers from adjusting limits, adding endorsements, or securing new policies until the suspension is lifted. For real estate investors, understanding when and why these temporary pauses happen, and how to stay ahead of them, is key to minimizing risk. What Is a Moratorium and Why Are Moratoriums Implemented? A property insurance moratorium is a temporary pause on issuing or changing insurance policies within a specific geographic area. These suspensions are issued by insurance carriers—typically by county or ZIP code—in response to approaching natural disasters or severe weather. The primary goal of a moratorium is to stabilize the carrier’s exposure during high-risk periods. Allowing new or adjusted coverage right before a potential catastrophe, like a hurricane, could significantly increase claims and threaten the carrier’s ability to pay out claims. Moratoriums help ensure fair, consistent risk assessment and protect both carriers and policyholders from sudden, unsustainable exposure. Common Triggers Include: Natural Disasters: Hurricanes, wildfires, etc. Severe Weather Forecasts: The threat of widespread or prolonged damage from events like flash flooding or exceptionally intense wind/hailstorms may prompt precautionary restrictions. Economic Conditions: In rare cases, large-scale financial or industry instability may also lead to moratoriums. The Implications of Moratoriums on Real Estate Investors For real estate investors, moratoriums can be disruptive—especially if you realize you don’t have the proper coverage in place or if a new acquisition is in motion. The most immediate impact is the inability to place coverage on a newly acquired property. If a moratorium is in effect for the area, insurers will typically not allow new policies to be written until the risk subsides and the moratorium is lifted. Moratoriums also restrict changes to active policies. Policyholders cannot adjust coverage limits, add endorsements, or make other updates to their policies during this time. This could create problems if an investor delayed necessary adjustments and now faces a high-risk event with inadequate protection. How Investors can Avoid the Potential Consequences of Moratoriums As always, proactive risk management is the best defense against the limitations that moratoriums can create. Here’s how investors can stay ahead: Evaluate coverage early and often Regularly review your portfolio’s insurance needs and update policies accordingly—especially if you own properties in high-risk states like California, Florida, Louisiana, or Texas. You don’t want to be scrambling for coverage when severe weather or natural disaster is on its way. Understand your limitations Most carriers do not allow insureds to drop certain coverages in “low risk” seasons and re-add them later. Attempting to do so can leave your property unable to obtain the coverage once more, leaving your property exposed. Be patient Moratoriums are temporary measures put in place to protect both insurers and policyholders. While they may cause frustrating delays in adding or updating coverage, they help ensure fair risk assessment and long-term coverage stability. Work with an experienced insurance partner Partnering with a provider, like NREIG, that understands the risks investment properties face helps ensure appropriate protections are in place long before a moratorium is issued. Look for a team that is not only knowledgeable but also easy to reach by phone, should you need to bind coverage quickly. --- - Published: 2025-05-05 - Modified: 2025-10-24 - URL: https://nreig.com/nreig-stands-out-as-the-leading-provider-of-real-estate-investment-insurance/ - Categories: NREIG News It's not uncommon for investors to shop for insurance based on price or to take what seems like the easiest route, such as obtaining a policy through the same carrier that insures their primary residence. But investment properties carry very different risks than owner-occupied homes, and standard homeowners carriers typically don’t offer the right type of coverage. That’s where NREIG stands apart. Our insurance solutions are built exclusively for real estate investors. Whether you own one rental property or manage a portfolio of hundreds, the NREIG program adapts to your business model and appetite for risk. Coverage for Any Occupancy & Seamless Transitions From new construction to renovation, vacant, or tenant-occupied, our program was built to follow an investment property’s lifecycle. Switching occupancy status is quick and easy, no need to secure a whole new policy each time your property’s status changes. Updates can be made directly through our client portal or with help from your Client Service Advisor. No Coinsurance, Ever Coinsurance is a clause found in most property insurance policies that penalizes you if at the time of loss, the location was not insured to a designated percentage of its value–often 80%, 90%, or 100%. Some carriers use coinsurance as a way to make their premium costs more appealing, but the claim deductions can be financially devastating to investors. NREIG completely eliminates coinsurance. Properties within our program are insured at a minimum of $75 per square foot for Actual Cash Value or $120 per square foot for Replacement Cost. This ensures properties are: Properly insured so that claims are paid out as expected. Protected from surprise deductions caused by unfamiliar fine print. Learn more about coinsurance and avoiding costly penalties here. Monthly Reporting & No Minimum-Earned Premiums Traditional insurance policies are annual contracts. Typically, if you cancel early, say your fix-and-flip sells or renovations are completed and a tenant moves in, you’ll likely owe a minimum-earned premium to your agent/agency. That means you may be on the hook to pay for some months in which you don’t actually need coverage. With NREIG, you’re not locked into annual policies. Our program operates on a monthly reporting schedule, so you can cancel or change your coverage at any time and only pay for the months that coverage was in effect. This aspect of our program is beneficial for all investors, whether you buy-and-hold or fix-and-flip. Higher Liability Limits Where many providers offer liability limits of $300K or $500K, NREIG’s limits begin at $1MM per occurrence, $2MM aggregate with higher limits available upon request. With an NREIG liability policy, defense costs are outside of those limits, meaning legal fees don’t eat into the funds available to settle a claim, a very important protection in the litigious environment of this industry. Client-First Service Our clients are at the heart of our program. Whether you’re new to real estate investing or managing a growing portfolio of hundreds, you can expect thoughtful, attentive service at every step. A dedicated Sales Advisor helps identify risk exposures and build a coverage plan that aligns with your investment strategy. Once your policy is active, a Client Service Advisor becomes your main point of contact for updates, questions, or changes. And don’t worry about navigating phone menus or generic inboxes. With NREIG, you’ll always reach a real person who knows your account. Backed By Trusted Carriers No matter how comprehensive your policy’s coverage is, it’s only as good as your carrier’s ability to fulfill it when a loss occurs. Carrier ratings, provided by independent rating agencies, measure an insurer’s financial health and ability to pay claims–even in difficult times like widespread natural disasters or economic downturns. Every policy in the NREIG program is underwritten by carriers rated “A-” or better by AM Best. Read more on insurance carrier ratings here and learn more about the differences between NREIG and Insurance Carriers here. Additional NREIG Benefits Entity-Friendly Coverage We know investors have different strategies for acquiring properties and structuring ownership. We insure properties held by LLCs, Trusts, IRAs, 401(k)s, and a variety of other entities and creative strategies. Coverage for Every Property Type From single-family rental homes to new construction properties, NREIG covers it all. Learn more here. Ancillary Coverages Add-on coverages like Flood, Earth Movement, Property Management E&O, Service Line, and our Tenant Protector Plan® help round out your protection. Why Choose NREIG? Real estate investments come with their own set of unique challenges, and having the right insurance can make a huge difference when the unexpected happens. Our team of experts is committed to offering tailored insurance solutions that address the needs of real estate investors. Contact NREIG today to discuss how we can customize an insurance package that works for you and your business! --- - Published: 2025-04-08 - Modified: 2025-06-24 - URL: https://nreig.com/standard-exclusions-on-investment-property-policies/ - Categories: Insurance Education - Tags: faulty workmanship, flood, mold, natural disasters, sewer and drain backup, wear and tear Exclusions play a significant role in defining the boundaries of your insurance coverage as they outline what is not covered by your policy. Carriers may exclude coverage for specific exposures for multiple reasons. Some risks may be too large or too costly to insure, such as terrorist attacks or earthquakes, while other excluded risks may encompass issues that are considered the property owner’s responsibility. Wear-and-tear damage or mold issues are almost always excluded, as these risks are characterized by general maintenance problems or conditions that develop over time and can usually be prevented with proper upkeep. Keep in mind insurance is designed to cover sudden and accidental damage, not gradual deterioration or preventable issues. Knowing what exclusions are typical for property policies can help highlight the risks you retain as the property owner and ensure you do not mistakenly expect coverage for incidents that your policy specifically omits. Some exclusions, though not all, can be bought back by endorsement or a separate policy. It's also important to note that standard homeowners policies often exclude coverage for losses related to running a business from the home, including rental activities. Investors must have a policy designed specifically for investment properties to ensure proper protection. What are typical exclusions in an insurance policy? Wear-and-Tear A normal amount of wear and tear is to be expected from the ordinary course of living. As an investor, you should be fully prepared to pay for carpet cleaning services and a fresh coat of paint between renters. Wear-and-tear damage and deterioration are industry-wide exclusions in property policies of any form. The cost of these small “repairs” can be taken care of through the security deposit or accepted as the cost of operating your business (tax-deductible). Intentional Tenant Damage Many investors assume that any kind of damage done by a tenant will be covered by their property insurance policy. Intentional tenant damage is usually a sudden, one-time event and may include damage such as broken doors, missing appliances, spray-painted walls, etc. Damage done by tenants is typically excluded and not considered vandalism or theft to most carriers as you have a written contract (the lease) entrusting the tenant with the care of your property. That contract should stipulate the penalties for any misuse of the property, whether that be withholding the security deposit or filing a civil lawsuit. Mold & Fungus Standing water from floods, sewer backup, or other water-related incidents can cause mold issues if not caught within 24-48 hours of the initial damage. Insurance coverage for mold, mildew, and fungus is typically completely excluded or very limited. As insurers differ, policy language may mention “mold,” “organic pathogens,” “mycotoxins,” or “penicillium. ” Some policies may also include wet and dry rot and bacteria as an exclusion. Some courts of law treat mold as a pollutant. As such, mold may not be covered if the policy has an absolute pollution exclusion. Mold and fungi may damage Sheetrock, insulation, and possibly framing. They may also affect your tenants’ health, including respiratory issues or allergies. Sewer & Drain Backup Tree-root blockages or sanitary main clogs may cause sewage or water to come up into homes through floor drains in showers, toilets, or sinks. This water backup or overflow from a sewer, drain, or sump is typically excluded from standard property policies. Sewer & Drain Backup coverage is included as part of NREIG’s Tenant Protector Plan and covers damage to the property caused by a clogged sewer line, failed sump pump, or backed-up drain that forces water into the home. Natural Disasters Earthquakes & Sinkholes The unpredictable and catastrophic nature of earthquakes and sinkholes leads most carriers to exclude coverage from standard policies. However, separate coverage can often be purchased as an endorsement of existing policies. NREIG offers Earth Movement as a supplemental policy, extending coverage to damage caused by a sudden and violent shaking of the ground resulting from the movement of the Earth’s crust and sinkholes. Flood Flood damage may occur when water from natural sources, such as rivers and lakes, breaches banks during heavy rains or when the ground is over-saturated with water and causes the excess to seep through foundations or other vulnerable parts of the structure. It’s important to know that to be considered a Flood loss, the water must come from an external source, not from within your plumbing or sewer system. Most property policies exclude coverage for flood, surface water, waves, tides, tidal waves, and overflow of any body of water or their spray, whether driven by wind or not. With most insurers, Flood coverage can be purchased as a separate policy. NREIG offers Flood insurance through the NFIP and private insurers. Faulty Workmanship Most insurance policies exclude coverage for property damage resulting from faulty structural works, such as deck support failure or other construction defects. Even if a renovation property is properly insured under a Builders Risk policy, carriers typically exclude Faulty Workmanship to prevent overlapping coverage. Instead, any damage or negligence caused by a contractor’s workmanship should be covered under their own insurance policy. This blog post is for informational purposes only and does not reflect the specific coverage terms of any particular policy offered by NREIG. These exclusions represent common limitations found in standard dwelling policies for real estate investment properties. Always review your insurance documents and speak with your Client Service Advisor to understand the exact exclusions that apply to your property. --- - Published: 2025-04-07 - Modified: 2025-12-30 - URL: https://nreig.com/umbrella-excess-liability-for-investment-properties/ - Categories: Insurance Education - Tags: back to basics, umbrella insurance Umbrella and Excess policies both extend the limits of a primary liability coverage, and while these terms are often used interchangeably, they function in different ways. Watch the video below to learn more about these policies and determine which option is a better fit for your business—or if requesting higher limits on your primary liability policy is a more effective solution. Transcript: All liability policies contain limits, typically per occurrence and annual aggregate caps. But what happens if a claim surpasses those limits? Umbrella and Excess policies extend underlying liability coverages, so you’re not left paying out of pocket for costs that exceed your primary policy. While these terms are often used interchangeably, they are not the same. A Commercial Umbrella policy extends across multiple lines of liability coverage, such as Errors and Omissions, Professional Liability, and Commercial Auto. In contrast, an Excess policy adds higher limits to just one specific coverage, like Premises Liability. Excess policies are typically most beneficial for investors who want additional coverage over their premises liability, while Umbrella policies are more suited for businesses with broader liability needs beyond the investment property itself. The most important thing to remember about Umbrella and Excess policies is that you must have an active primary liability policy in place for either to apply, and they do not provide coverage until the limits of the primary policy have been exhausted. Another option to consider is requesting higher limits on your primary liability policy, which can help ensure you have adequate coverage without the need for additional policies. Every investor’s risk is different. Contact NREIG today for coverage tailored to your exact needs. { "@context": "https://schema. org", "@type": "VideoObject", "@id": "https://nreig. com/umbrella-excess-liability-for-investment-properties/#video", "name": "Umbrella & Excess Liability Insurance Explained for Real Estate Investors", "description": "We break down the difference between umbrella and excess liability insurance and explain how each policy works to shield your real estate assets from unexpected lawsuits, accidents, and costly claims. ", "thumbnailUrl": , "uploadDate": "2025-04-07T00:00:00Z", "duration": "PT1M39S", "embedUrl": "https://www. youtube. com/embed/WeHMGWz67xk", "contentUrl": "https://www. youtube. com/watch? v=WeHMGWz67xk", "publisher": { "@type": "Organization", "name": "National Real Estate Insurance Group (NREIG)", "url": "https://nreig. com" }, "isFamilyFriendly": true, "inLanguage": "en", "potentialAction": { "@type": "WatchAction", "target": }, "interactionStatistic": { "@type": "InteractionCounter", "interactionType": { "@type": "WatchAction" }, "userInteractionCount": 0 }, "mainEntityOfPage": "https://nreig. com/umbrella-excess-liability-for-investment-properties/" } --- - Published: 2025-03-26 - Modified: 2026-01-02 - URL: https://nreig.com/limits-sublimits-on-property-insurance-policies/ - Categories: Insurance Education - Tags: back to basics, sublimits Limits and sublimits set caps on how much your carrier will pay out for different types of losses. Learn how each can impact your claims in the video below! Transcript: Limit and sublimit–two terms you’ve likely seen in your insurance policy. They both set boundaries on payouts but apply to different things. Let’s break it down by focusing on how each applies to your property coverage specifically. A limit is the maximum amount an insurance carrier will pay for a covered property loss. This amount depends on your property’s value and size. The limit is typically based on the insured value of the property, often determined through tools like a Replacement Cost Estimator or by adhering to minimum required coverage standards, such as a specific dollar amount per square foot. Sublimits apply to specific losses–like theft, vandalism, or tree removal. While these may be covered, the payout for each loss is capped. For example, while theft is a covered peril on most policies, any claim payout may be limited to thirty-thousand dollars. Don't assume you're fully covered for all types of losses. It’s very likely certain losses on your policy are capped or have specific payout restrictions. Want more tips on protecting your investment properties? Subscribe to our YouTube channel for insurance insights! { "@context": "https://schema. org", "@type": "VideoObject", "@id": "https://nreig. com/limits-sublimits-on-property-insurance-policies/#video", "name": "Limits & Sublimits on Property Insurance Policies Explained", "description": "Understand how limits and sublimits work on property insurance policies—what they cap, how they apply to specific perils or coverages, and why real estate investors should review them to avoid unexpected gaps. ", "thumbnailUrl": , "uploadDate": "2025-02-04T00:00:00Z", "embedUrl": "https://www. youtube. com/embed/VIDEO_ID", "contentUrl": "https://www. youtube. com/watch? v=VIDEO_ID", "publisher": { "@type": "Organization", "name": "National Real Estate Insurance Group (NREIG)", "url": "https://nreig. com" }, "isFamilyFriendly": true, "inLanguage": "en", "potentialAction": { "@type": "WatchAction", "target": }, "mainEntityOfPage": "https://nreig. com/limits-sublimits-on-property-insurance-policies/" } --- - Published: 2025-03-18 - Modified: 2025-05-14 - URL: https://nreig.com/understanding-coinsurance-penalties/ - Categories: Insurance Education - Tags: back to basics Underinsuring your property, even if accidental, could greatly decrease claim payouts when a loss occurs. In this video, we break down how coinsurance penalties work, and how you can avoid them. Watch below! Transcript: Coinsurance is an insurance provision that requires property owners to insure their property to a certain percentage of its value- usually 80, 90, or 100 percent. If this requirement is not met at the time of loss, penalties will be incurred, and the claim payout significantly reduced. Let's say an investment property insured for 100,000 dollars suffers a 40,000-dollar loss. The insurance adjuster comes out to take a look and determines the rebuild cost of the property is actually 250,000 dollars. Per the policy agreement, this property should have been insured to 80 percent of its true replacement cost, in this case, 200,000 dollars. As the property is only insured for 100,000 dollars, a coinsurance penalty will be applied for the percentage it was underinsured, in this scenario, that’s 50 percent. Bringing the claim amount down to 20,000 dollars, and after a 3,000-dollar deductible, the payout is just 17,000 dollars for a 40,000-dollar loss. National Real Estate Insurance Group’s no-coinsurance policies help investors avoid these penalties and ensure protection without unnecessary costs. Partner with the industry experts today. --- - Published: 2025-03-13 - Modified: 2025-10-24 - URL: https://nreig.com/actual-cash-value-vs-replacement-cost-choosing-loss-settlement-methods/ - Categories: Insurance Education - Tags: actual cash value, back to basics, loss settlement methods, replacement cost When a loss occurs at one of your investment properties, how your insurance pays out can make a significant difference. Which settlement method best suits your business, Actual Cash Value (ACV) or Replacement Cost (RC)? Watch the video below to learn more about the benefits of each and what to consider when choosing the right coverage for your portfolio. Transcript: Imagine one of your investment properties was unexpectedly damaged. How would you want your insurance to handle the payout? You have two settlement method options: Actual Cash Value or Replacement Cost. The difference between each lies in depreciation; the reduction in value of your property over time due to wear and tear. Actual Cash Value would pay out what your property was worth at the time of loss, minus depreciation and your deductible. The benefits? ACV is cheaper than Replacement Cost, you can insure to a lower value per square foot, and the payout is yours to use however you like- you could repair the damage or sell the property as is and use the money to buy a car, for example. Your other option, Replacement Cost, would first pay out the ACV amount for repairs. If your costs exceed this amount, the insurer would then send a second check for reimbursable depreciation. While RC requires you to insure to a higher value per square foot, it offers more financial protection and the opportunity to recoup money deducted for depreciation. Not sure which settlement method is right for you? Our team of experts is here to help. --- - Published: 2025-03-12 - Modified: 2025-04-25 - URL: https://nreig.com/know-difference-flood-water-damage-sewer-back-2/ - Categories: Floods, Insurance Education, Seasonal Tips, Spring, Water, Weather Events - Tags: flood insurance, flooding, sewer back-up, water, wind Understanding the insurance differences between Flood, Water Damage, and Sewer back-up is a common area of confusion for any real estate investor. Which covers what cause of damage? Where am I exposed? How can I purchase these coverages if they are excluded from my current policy? Let's define each and outline their differences. Flood Insurance FEMA defines a flood as a “general and temporary condition of partial or complete inundation of two or more acres and two or more properties of normally dry land. ” In addition, flood damage can only be caused by the “overflow of inland or tidal waters, unusual and rapid accumulation or runoff of surface waters from any source, mudflow, or collapse of land along the shore of a lake or a similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels. ” A flood may occur when water from natural sources such as rivers and lakes breaches its banks during heavy rains or when the ground is over-saturated with water and causes the excess to seep through foundations or other vulnerable parts of the structure. Most property policies exclude coverage for "flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not... ” (Insurance Services Office). Thus, flood coverage must be purchased separately. Costs vary and are dependent upon the amount of coverage desired and the property’s location within specified flood zones. Water Damage Coverage Water Damage must be “sudden and accidental” to be covered, such as a pipe bursting or the accidental overflow of a bathtub. In colder seasons if freezing causes a pipe to burst, one must certify that they have done their best to maintain heat in the building or have fully drained the system and shut off the water supply in order for coverage to be available for the ensuing water damage. Rain that damages the interior of a property after the roof is compromised from a storm also falls under the category of Water Damage. The easiest way to ensure you have Water Damage coverage included on your policy is to purchase Special Form Insurance Coverage. Be careful as some carriers can and will manuscript those policies to exclude Water Damage coverage (even when you purchase Special Form). While it is always a best practice to read your full policy, at the very least you should review your policy endorsements and exclusions to make sure this exclusion is not present. Sewer Back-up Coverage Sewer Back-up is another common exclusion in property policies and is defined as “water that backs up or overflows from a sewer, drain, or sump. ” (ISO) Drains and sewers can back up during storms. So, what you or I call a “flooded basement” may or may not technically be considered a flood when it comes to insurance. It all depends upon how the water enters the dwelling. That stated, investors will want to make sure that any drainage systems in basements are well-maintained and that sump pumps are regularly tested to help avoid water damage from Sewer back-up. Sewer and Drain back-up can sometimes be purchased for an additional premium through most carriers (regardless of the property coverage form you currently carry). This is not always the cheapest coverage to add, so if you're able, you may consider a higher deductible for this peril to offset the additional cost (if this is an issue for you). Many carriers can assign a unique deductible to this peril alone, much like they do for wind/hail (in some areas of the country), Named windstorms, earthquakes, and/or floods. NREIG offers coverage for peril through our Tenant Protector Plan®. Other Water-Related Considerations Named Windstorm It is important to note that even a property policy that covers a Named Windstorm typically does not cover damage caused by a Flood that occurs as a result of that storm surge. By policy definition, a Named Storm is defined as "Any Storm, Cyclone, Typhoon, Atmospheric Disturbance, Depression, Hurricane, Tropical Storm, or other Weather Phenomena designated by the US National Hurricane Center and where a name has been applied. " In short, a Named Windstorm is intended to cover damage to the property caused by wind. Consider carrying Flood Insurance to account for the damage caused by flooding as a result of the storm if your properties are in hurricane-prone areas. Most NREIG policies automatically include coverage for Named Windstorm. Mold Standing water from any of the above perils can cause mold issues if not caught within 24-48 hours of the damage. Mold, mildew, and fungus are typically excluded from property policies, so be sure to take swift action to remove water and moisture after an incident. Some NREIG property policies include limited coverage for mold, so if this is important to you, ask your CSR. As always, if you are unclear about your coverages, consult your Client Service Advisor. Many losses can be avoided by being aware of common risks and taking prudent steps to maintain and protect your property. Your Client Service Advisor will also be happy to share tips to safeguard your investment. Note: This piece is not to be construed as contractual. Applicable policy language supersedes it. Information contained in this excerpt is intended to provide a brief overview of the coverages provided for reference purposes only. It is not intended to provide all policy exclusions, limitations, and conditions. --- - Published: 2025-03-04 - Modified: 2025-05-14 - URL: https://nreig.com/explaining-basic-vs-special-form-coverages/ - Categories: Insurance Education - Tags: basic form, insurance tips, special form Protecting your investment properties begins with understanding available coverage forms and which one best suits your needs. Learn about Basic and Special forms in the video below! Transcript: Protecting your investment properties begins with understanding the coverage forms available to you and which best suits each of your location’s needs. National Real Estate Insurance Group offers property insurance in two forms: Basic & Special. Basic Form Coverage is a Named Peril policy. Meaning, for a loss to be covered, the peril must be listed by name on the declarations page. Basic Form is typically the cheapest option, however, it’s important to note that these policies exclude coverage for: Collapse Falling Objects Theft Weight of Ice, Sleet, or Snow Water Damage- most known as coverage for frozen and burst pipes Special Form is an All-Risk coverage. Meaning anything that is not specifically excluded from the policy is covered. While Special Form is the most comprehensive coverage option available, these policies also contain standard exclusions, such as: Mold & Fungus Wear & Tear Sewer & Drain Backup Earth Movement Flood Intentional Tenant Damage Some of these excluded perils can be covered through endorsements or standalone policies. While cost is often a key consideration, it's equally important to evaluate the unique risks associated with your property's location and occupancy status. Contact NREIG today for a comprehensive policy and coverage comparison. --- - Published: 2025-03-04 - Modified: 2025-03-04 - URL: https://nreig.com/the-ultimate-tax-reduction-guide-for-real-estate-investors/ - Categories: Investing Tips Owning rental properties can be a profitable investment, but without a well-structured tax strategy, you could be overpaying the IRS and missing out on significant savings. In this guide, we’ll explore essential tax deductions and advanced tax strategies every real estate investor should know, helping you reduce your tax burden, protect your assets, and reinvest your profits to grow your portfolio. Understanding Tax Deductions Tax deductions help reduce your taxable income, which lowers the amount of taxes you owe. For rental property owners, this can include various costs tied to maintaining and managing their properties. Taking advantage of these deductions can improve profitability and minimize your overall tax burden. Common Rental Property Tax Deductions Popular deductions for rental properties include mortgage interest, property taxes, and expenses related to maintenance and improvements. It's important for property owners to familiarize themselves with local tax laws and understand the difference between deductible repairs and capital upgrades. Accurate record-keeping is key to maximizing your tax benefits. By tracking eligible expenses like utilities, insurance, and professional services, you'll have a clear tax strategy and remain compliant with regulations. 7 Most Popular Tax Deductions Below are seven popular deductions that can help lower your taxable income and improve your bottom line: Mortgage Interest: One of the most significant tax breaks for landlords is the ability to deduct mortgage interest payments. This deduction can substantially reduce your taxable income, making your rental more lucrative over time. Repairs vs. Improvements: Repairs such as fixing leaks or replacing damaged components can be deducted immediately, while capital improvements (like a new roof) must be depreciated over time. Make sure to differentiate between these for accurate deductions. Depreciation: Depreciation allows you to recover the cost of the property over a period (typically 27. 5 years for residential rentals). By doing so, you spread out the tax benefits and lower your taxable income each year. Utilities and Services: If you cover any utilities like water or electricity for your tenants, those costs can be deducted. Keeping accurate records of these expenses ensures you’re maximizing your deductions. Insurance Premiums: Protecting your rental property through insurance is vital, and the premiums you pay for coverage (including hazard and liability insurance) are tax-deductible. Property Management Fees: Hiring a property manager to oversee your rental operations can ease the burden of maintenance, tenant screening, and rent collection. The fees you pay for these services are fully deductible, reducing your taxable income. Travel Expenses: Whether you’re traveling to inspect properties, meet tenants, or supervise repairs, your travel expenses (mileage, lodging, etc. ) are deductible as long as they are directly related to your rental operations. Advanced Tax Reduction Strategies Real estate investors can also take advantage of other advanced tax strategies to reduce their taxable income. From 1031 Exchanges, Cost Segregation, Bonus Depreciation, and Section 179 Deductions to Real Estate Professional Status (REPS), the Short-Term Rental Loophole, and the Pass-Through Entity Deduction, these advanced tax strategies help investors reduce taxable income and optimize cash flow. Maximizing depreciation through Cost Segregation or Bonus Depreciation accelerates deductions, while a 1031 Exchange allows deferral of capital gains taxes, keeping more money in play for future investments. Qualifying for REPS or leveraging the Short-Term Rental Loophole can unlock tax benefits by allowing rental losses to offset active income. Even simple strategies like the home office deduction or hiring family members can create additional savings. Implementing these strategies ensures investors retain more of their earnings, reinvest in new properties, and scale their real estate portfolios with greater tax efficiency. By combining these advanced tax strategies with standard deductions, real estate investors can significantly lower their tax liability, improve cash flow, and reinvest savings into future properties. Always consult with a tax professional to ensure compliance and maximize your benefits. If you’re looking to optimize your tax strategy and ensure compliance with the latest regulations, Anderson Advisors can help. Their team of experts specializes in tax planning, asset protection, and estate planning for real estate investors. They offer personalized consultations to help you navigate the complexities of the tax code and keep your properties protected. Schedule a free consultation today and let Anderson Advisors create a personalized tax plan to maximize your savings and elevate your real estate portfolio. --- - Published: 2025-02-25 - Modified: 2025-05-14 - URL: https://nreig.com/what-is-premises-liability/ - Categories: Insurance Education - Tags: back to basics, liability insurance, Premises liability As a real estate investor, it is your duty to maintain your property and keep it in a safe condition for tenants and guests. Failure to do so puts you at an increased risk of a third-party injury claim in which your Premises Liability coverage would come into play. Learn more about Premises Liability and the protections it provides in the video below. Transcript: As a property owner, you have specific legal responsibilities. Some of which include maintaining the premises, repairing potential hazards promptly, and alerting residents of any dangers. Failure to fulfill these duties can lead to claims of negligence or costly lawsuits. Imagine a scenario in which a tenant or visitor slips on an icy sidewalk and sustains an injury. If the injured party files a lawsuit against you for bodily injury, you could be responsible for their medical expenses and may be required to pay damages. That’s where Premises Liability comes in. This coverage protects land and property owners from potential lawsuits and financial losses that may arise from accidents or injuries on your premises. If a claim or lawsuit is filed against you, your insurer may cover court fees, defense costs, medical expenses, or other awarded damages. While there are many different types of insurance you may carry as a real estate investor, Premises Liability is one coverage you should NEVER go without. --- - Published: 2025-02-20 - Modified: 2025-05-14 - URL: https://nreig.com/what-is-property-insurance/ - Categories: Insurance Education - Tags: back to basics, investment property insurance, property insurance Although property insurance and homeowners policies share similarities, the insurance needed for an investment property can be very different from what is required for an owner-occupied home. Learn more about what property insurance covers and why it’s a better option for investors in the video below. Transcript: Whether your investment property is tenant-occupied, vacant, or under construction, property insurance provides coverage and financial protection against a wide range of risks and perils. A peril is an unexpected event that causes damage or loss to a property. While the types of covered perils vary based on your coverage form, most policies include coverage for perils such as Fire, Explosion, Windstorms and Hail, Smoke, and Vandalism. It’s important to remember that property insurance is NOT a maintenance plan to help pay for upkeep or general wear and tear. Property coverage is for physical damage, caused by sudden and unforeseen incidents. Now, you may be thinking, “property insurance sounds a lot like a homeowners policy. ” And while they do share similarities, the insurance needed for an investment property can be much different than what is required for an owner-occupied home. In fact, many homeowners policies exclude coverage for properties used as business ventures. Therefore, it is very important that your insurance agent AND carrier know the home is an investment property. Otherwise, your insurance carrier may have the right to deny a claim when a loss occurs. Regardless of a property's occupancy status, having the right insurance policy in place is essential for protecting your investment and securing your financial future. National Real Estate Insurance Group offers property coverage for all phases of occupancy on one monthly schedule and bill. --- - Published: 2025-02-18 - Modified: 2025-05-14 - URL: https://nreig.com/what-is-national-real-estate-insurance-group/ - Categories: Insurance Education - Tags: back to basics As a real estate investor, you devote time and money to ensure your investment business runs smoothly. But finding insurance policies that fit your portfolio’s unique needs is a pain and usually contains coverage gaps, which can damage your business. National Real Estate Insurance Group built a program with investors in mind. We provide monthly reporting and a pay-as-you-go plan to accommodate your ever-changing needs. NREIG also offers a suite of ancillary products to customize each location’s coverage. Watch the video below to learn more about our independent agency and program benefits. Transcript: Here’s you, a real estate investor. You devote tons of time and money to making sure your investment business runs smoothly. But finding insurance policies that fit your portfolio's unique needs is a pain. So, you settle for whatever run-of-the-mill coverage you can find and hope it’s good enough. Unfortunately, coverage gaps and policy exclusions that you may not have been aware of can cost you tens of thousands of dollars. Meaning inadequate coverage can be just as damaging to your business as no coverage at all. Not all insurance policies are the same, and not all insurance agents are comfortable or even willing to work with investors. Your insurance needs are just as unique and challenging as the properties you hold. And most agents don’t have the correct markets or systems in place to serve those needs. But National Real Estate Insurance Group does. We built a program that allows for changes on a monthly reporting form according to your ever-changing needs. And to make it work as close to real-time as possible, we developed a pay-as-you-go plan that can accommodate locations through all phases of occupancy. We also offer a suite of ancillary products to customize each location’s coverage. NREIG has provided real estate investors with a simplified insurance experience for 15 years and counting. As the nation’s largest REI insurance program, we insure hundreds of thousands of locations across all 50 states. Whether you have one property or hundreds, partner with the industry experts at NREIG. Request a proposal today at NREIG. com or call us at 888. 741. 8454. Want to learn more about real estate investment insurance? Subscribe to our YouTube channel to get notified when we post new videos! --- - Published: 2025-02-03 - Modified: 2025-02-03 - URL: https://nreig.com/the-impact-of-market-value-rebuild-value-on-investment-property-insurance/ - Categories: Insurance Education When insuring an investment property, one of the biggest misconceptions is that the insured amount should match what the property is worth on the market. However, market value and rebuild value are two very different figures, and confusing them can leave you underinsured or overpaying for coverage. Understanding why and how these values differ is critical to ensuring you have the right coverage amount for your investment property. Market Value Market value is the price a buyer would pay for a property today, or what a seller would expect to receive. It's influenced by numerous factors, including: Location: Desirable neighborhoods, school districts, and proximity to amenities drive higher prices. Demand: High demand in a competitive market can drive property values up. Property Size & Features: Larger properties or those with upgraded features can command higher prices. The Condition of the Housing Market: Market trends, interest rates, and economic conditions impact values. Land Value: Market value includes the price of the land the property sits on. Rental Income Potential: Properties with strong rental demand or cash flow potential likely carry a higher market value. Common Misconceptions Investors sometimes mistake assessed value (used to calculate property tax ) or appraised value (used by lenders) for market value, but the amounts likely differ significantly. Additionally, when properties are priced for sale, sellers often aim high, factoring in potential profit and comparable home sales. This perceived value can be higher than what a home might actually sell for or what it would cost to rebuild. In most cases, market value is higher than rebuild value, particularly when desirable locations and buyer demand drive prices up. However, this isn’t always the case as the cost of construction and labor can sometimes push rebuild value higher than market value. Rebuild Value Rebuild value is the amount it would take to completely rebuild a property from the ground up if it were damaged beyond repair. Rebuild value considers: Demolition & Cleanup Costs: If a home is severely damaged, removing debris before rebuilding can be costly. Labor & Material Costs: Unlike mass-produced homes in new developments, rebuilding is often done on a one-off basis, which increases costs. Inflation: The cost of materials and labor can fluctuate, especially during periods of high demand. Catastrophe Surge Pricing: In the aftermath of a disaster, labor and material shortages can drive up rebuild costs significantly. Building Code Upgrades: Rebuilding often requires compliance with updated codes, which can add to the overall cost. Rebuild Value & Your Insurance The insured value of a home is typically based on rebuild value, not market value. Should a covered total loss occur, the property can be rebuilt without significant financial strain on the owner. Most standard property insurance policies determine coverage amounts based on a calculated rebuild value, factoring in the location, quality of construction, square footage, and cost of materials and labor. Ensuring that your policy reflects an accurate rebuild value is essential to prevent: Underinsuring: If your coverage is too low, you could face out-of-pocket expenses in the event of a total loss. Overinsuring: If your coverage is too high, you may be paying unnecessarily high premiums. Maintaining Proper Insurance Coverage Ensure your investment is adequately covered by following these guidelines: Review Your Policy Annually: It’s important to check that your coverage aligns with your investment strategy, deductible preferences, and any changes that could affect future claims. Report Property Upgrades: Renovations and additions can increase rebuild value–if your insurer isn’t aware, you might be underinsured. Working with Insurance Experts: A specialized insurance agency, like NREIG, can help ensure your property is properly insured, both in value and coverage. --- - Published: 2024-12-26 - Modified: 2024-12-26 - URL: https://nreig.com/2024-a-year-of-extreme-weather-across-the-u-s/ - Categories: Insurance Education, Weather Events The year 2024 brought an array of weather extremes across the United States, marking one of the most tumultuous years in recent memory. From hurricanes and wildfires to record-setting tornadoes and flooding, nature’s force left a lasting impact on millions. Here, we’ll take a closer look at the year’s most significant weather events and their effects on the nation. A Year of Costly Disasters According to the National Oceanic and Atmospheric Administration’s NCEI, 2024 was the second most destructive year of the past decade. These events spanned nearly every corner of the country, underscoring the diverse challenges posed by the U. S. ’s vast geography and climate. Tornadoes Surge to Near-Record Levels Tornadoes dominated the weather landscape in 2024, with 1,765 confirmed reports–434 more than in 2023. According to the National Weather Service, this was the second-highest annual total since 2011, with May alone contributing 576 tornadoes. The majority of 2024’s tornadoes struck Texas, Nebraska, Iowa, Illinois, Missouri, and Florida. Hurricanes Leave a Devastating Mark The 2024 Atlantic hurricane season featured above-average activity and a record-breaking ramp-up following a peak-season lull. Numbers from the NOAA tell us the Atlantic basin saw 18 named storms, 11 of which developed into hurricanes, and five intensified into major hurricanes. By comparison, an average season typically produces 14 named storms, seven hurricanes, and three major hurricanes. Five of the 11 hurricanes made landfall in the United States, including two that struck as major hurricanes. Hurricane Helene was the most notable, leaving a trail of destruction and becoming the deadliest U. S. mainland storm since Hurricane Katrina in 2005, claiming at least 230 lives across seven states. Flooding: A Persistent Threat Flooding continued to be the most frequent and expensive natural disaster in the U. S. in 2024. Heavy rains in January led to widespread flooding in San Diego, displacing around 1,200 homes–more than half in the city, according to NBC 7 San Diego. Hurricane Helene delivered catastrophic flooding across the southern Appalachian Mountains in late September. Torrential rains overwhelmed rivers and saturated already-soaked towns, inundating and setting new flood records in western North Carolina. According to the NOAA, the region experienced nearly 2,000 landslides, with major roadways closed for days due to impassable conditions. Later in the year, in November, a powerful “bomb cyclone” struck the Pacific Northwest. A bomb cyclone occurs when a storm rapidly intensifies due to a dramatic drop in atmospheric pressure, often leading to severe weather. This particular storm delivered intense rainfall, strong winds, and heavy snow. Reports from Fox Weather show areas like Sonoma County received up to 20 inches of rain, while mountain regions experienced significant snow accumulation. Wildfires Burned Millions of Acres Despite fewer wildfires overall in 2024 compared to the 10-year average, the acreage burned was staggering. According to the National Interagency Fire Center, over 8. 5 million acres were scorched by wildfires, exceeding the average of past years by 1. 6 million acres. The western U. S. endured a prolonged wildfire season due to windy and dry conditions, with smoke blanketing entire regions. Mid-Atlantic and southern New England regions faced an unusual late-season fire surge in November. Southern California also experienced a spike in activity in early November due to a Santa Ana wind event. Winter 2024-2025 Outlook As 2024 ends, AccuWeather forecasts indicate that the ‘24-’25 winter will bring moderate conditions to most of the country, much like the previous year’s record warmth. Warmer-than-average temperatures are expected from the southern U. S. to the eastern Great Lakes, New England, and northern Alaska. In contrast, slightly colder-than-average conditions are predicted for southern Alaska, the Pacific Northwest, and the northern High Plains. These shifting patterns serve as a reminder of the evolving nature of seasonal weather and its potential implications on properties. Source: https://www. ncei. noaa. gov/access/billions/ Preparing for 2025 For many real estate investors, 2024 highlighted the importance of preparing for extreme weather events. Mitigation resources, such as those on the NREIG website, can help minimize damage from severe weather and protect your investments. Proactive measures and comprehensive insurance coverage are essential for navigating the challenges posed by our changing climate. For mitigation tips, read: Preparing Investment Properties for Wildfire, Hurricane and Tornado Season Preparing Your Property for Severe Spring Weather Unique Challenges RE Investors Face in Disaster Preparation --- - Published: 2024-12-12 - Modified: 2025-05-14 - URL: https://nreig.com/strategies-to-reduce-your-insurance-premium/ - Categories: Insurance Education - Tags: deductibles, property management, renter's insurance, risk management In today’s episode, we are diving into a topic that could save you hundreds, maybe even thousands, each year: how to reduce your property insurance premium. With return guest Jason Jones, we’ll explore practical strategies to cut down your premium without sacrificing the coverage you need. Remember, even small steps can lead to significant savings over time. Let’s get started! What influences insurance premiums? You have a few things that are significant in establishing what the premiums are. First, the property value. That’s where the more expensive the property, say your California or Florida properties, the more costly it is to rebuild and repair. Location can also impact premiums. Location is important because some areas are more prone to natural disasters or certain elements, like theft and vandalism. Additionally, insurers look at claims history. If you have a lot of past claims that signals a red flag to the insurer. In order to be comfortable, they're going to want to collect enough premium to offset what they feel the risks are. That doesn't mean that if you have a claim, you're going to get penalized for it. But it's definitely important, if you do have claims, that you attempt to mitigate the risk sooner than later. Why do insurance premiums vary by provider? Providers have different appetites for the types of risks that they insure. That could factor in experience or the amount of capacity they were given in a certain area. Every provider has a different portfolio of properties they insure, and they try to spread that risk. Overall, they’re assessing the risk they’re willing to take on and every provider is different in what they’re willing to risk. There are lots of ways investors can reduce their insurance premiums. We're going to talk about five key strategies every investor should know. First up, how can raising your deductible help lower your premium? Well, increasing your deductible means ultimately, you’re self-insuring more, which lowers the risk for the insurance company. And that output is a lower premium for you. If raising your entire deductible seems like too much, you can also raise your deductible on some of the problem areas in your portfolio. For example, if you’re seeing more issues with wind and hail, you can raise the deductible on just those perils. When choosing your deductibles, consider what amount you're comfortable with paying out of pocket after a loss before the insurance company starts to pay. How can you save on insurance costs by making your property more resistant to a loss? Property management helps you avoid preventable losses and demonstrates to your insurer that you're serious about risk management. This means you’re clearing gutters, limbs, sidewalks, driveways, fireplaces, etc. to make sure that there aren't any obvious risks or things that could pose challenges to guests or tenants. As an example, there was a recent claim that we had where a large tree, which appears to have been dead for a long time, fell after a little bit of wind and struck a child. This was a pretty obvious risk where the tree should have been cut down, therefore avoiding this claim. So, clearly, it’s important to take care of your property, especially trees and broken concrete and steps. Also, many carriers may provide credits on the rates for working, hardwired smoke detectors, central station alarms, and sprinkler systems. Even smart home items, like thermostats and leak detectors, are helpful. It's really about finding different ways to protect your property. Upgrades to your plumbing, heating, and electrical systems are also other ways to mitigate potential damage and loss. People often bundle their home and auto insurance to save costs. How can investors combine their properties onto one policy? And how is that valuable for the investor? Combining your properties onto one insurer is really a good tool for the investor. And the reason I say that is because you're better able to understand how all of the properties will be managed. You don't have a deviation from one carrier to the next. It’s more efficient for the investor to understand where their policies are. We’ve had investors try to file a claim with us and come to realize that the property isn’t with us. To have some peace of mind, there is value in having all your locations in one place if you can. While having all your investment property coverage in one place can be beneficial, I don’t recommend bundling your investment properties with your personal assets. That allows for a line of demarcation. If there's a lawsuit, that places not only your business in jeopardy but also your personal assets. How does requiring all tenants to carry renters insurance lower insurance costs? Tenants by and large are interested in doing the right thing and protecting the property. But on the other side, tenants do things that are ultimately considered negligent. Having a renters policy in force means the insurance company representing the negligent party pays for a tenant-caused loss, which assists in stabilizing your property rates long term. If the negligent tenant doesn’t have renters insurance, the next person to pay for the claim is the owner. A renter that has insurance provides a buffer to help manage the risk. Lastly, how should investors shop around and use an independent agent? Independent agents are contracted with several carriers and programs. It's important to find one who understands your unique needs as an investor and is willing to take the time to understand your goals. Different carriers will often provide different options and approaches to the risk (your property) in question. Independent agents have access to a lot of different resources to give you the best opportunity to get the coverage you're looking for. In the end, you really just want to review the differences between costs and coverage. Consider that cheaper isn't always better. Where should investors not cut corners? Liability insurance is one of those areas that’s a relatively small cost for what it’s... --- - Published: 2024-12-02 - Modified: 2025-11-10 - URL: https://nreig.com/understanding-insurance-carrier-ratings-am-best-demotech-and-unrated/ - Categories: Insurance Education When looking for insurance, it’s easy to focus on coverage details, exclusions, and premiums. And while those are all important aspects of your policy, there’s another factor that is just as crucial: the financial strength of your insurance carrier. Why does this matter? Because no matter how comprehensive your policy is, it’s only as good as your carrier’s ability to fulfill it. This is where carrier ratings come into play. These ratings, provided by independent rating agencies, measure an insurer’s financial health and ability to pay claims–even in difficult times like widespread natural disasters or economic downturns. Understanding these ratings can give you peace of mind, knowing your properties are covered by a reliable carrier. But not all rating systems are created equal. AM Best Assessing and reporting on over 16,000 insurance companies worldwide, AM Best is widely recognized as the leading authority on property/casualty insurance carrier ratings. Best’s credit ratings are independent opinions regarding the creditworthiness of an insurer. Founded in 1899, Best has a long history of evaluating insurers based on a comprehensive evaluation of a company’s balance sheet strength, operating performance, business profile, and enterprise risk management. Its ratings range from “A++” (Superior) to “S” (Suspended), with “B+” or better indicating a financially secure carrier. Insurers with these ratings have demonstrated strong financial resilience and the capacity to meet policyholder obligations in a timely manner, even in times of market stress. For real estate investors, obtaining coverage underwritten by AM Best B+ or better rated carriers means peace of mind. These insurers are less likely to face financial insolvency or struggle during major claim surges, ensuring covered claims will be paid in a timely and reliable manner. DemoTech Founded in 1985, Demotech provides ratings for small to mid-size regional and specialty insurers that may not be reviewed by other rating agencies. Their Financial Stability Ratings® (FSRs) are intended to indicate whether an insurer appears able to meet policyholder obligations under a variety of economic conditions. According to the company, Demotech’s methodology focuses on the strength of its balance sheet over time. Unrated Carriers & The Risks That Come with Them An additional layer of risk comes from unrated carriers–insurers that carry no rating from agencies like AM Best or DemoTech. While these carriers may still be licensed and legally able to sell policies, the lack of rating means there’s no independent verification of their strength. Without a rating, it’s difficult to gauge whether an unrated carrier has the resources to pay claims, particularly during widespread or catastrophic events. Policyholders could unknowingly be taking on significant financial risk, relying on a carrier with unknown or unstable financial footing. In worst-case scenarios, an unrated carrier may become insolvent, leaving policyholders without coverage when they need it most. Why Rating Systems Matter to You When it comes to insurance, the agency you work with is just as important as the carriers they work with. Agencies that prioritize partnerships with financially secure carriers, such as those rated “B+” or better by AM Best, ensure their clients are protected by insurers with proven positive track records. Additionally, for the reasons listed above, some lenders require specific carrier ratings. Review your loan documents to ensure your policy meets lender requirements. Working with an agency, like National Real Estate Insurance Group, that partners exclusively with financially stable AM Best highly rated insurers ensures your properties are in good hands. All of NREIG’s policies are underwritten by AM Best “A-” rated or better carriers. Learn more about the responsibilities of NREIG and our insurance carrier partners here. --- - Published: 2024-11-26 - Modified: 2024-11-26 - URL: https://nreig.com/five-signs-your-tree-is-in-trouble/ - Categories: Investing Tips, Seasonal Tips, Summer - Tags: damaged trees, dead trees, fungus, landscape, trees It’s easy to take tree health for granted. We assume our trees will always remain standing and won’t require any maintenance. However, costly problems can sneak up on you if you don’t include tree inspection as an item on your regular maintenance checklists. Costly Problems Caused by Dying Trees Dead trees may become an eyesore that detracts from your property’s curb appeal, but the problems a dead tree can cause go far beyond looks. What other issues can they cause? Dead trees or branches can fall without warning, causing property damage or serious injury to tenants, their guests, or a passerby. Healthy trees can be jeopardized by other diseased or insect-infected trees on the property. Dead trees may attract creatures, such as termites, rats, and insects to take up residence in your property. Dying, leaning trees can unexpectedly fall on power lines, cars, and even pedestrians adjacent to or simply passing by your property. Did you know? A few tree species have brittle wood that makes them more susceptible to damage in a storm: Chinese elm, silver maple, boxelder, various poplars, and Bradford pears. A tree’s roots are crucial to its overall health. Damaging them can create points of entry for pathogens, reduce their ability to take up nutrients and water, and endanger their structural support, increasing the risk of it toppling onto your property in a storm. Trees are living things that change over time. It’s important to check them at least once a year. A tree that was healthy and survived the last storm isn’t guaranteed to survive the next one. Indications Your Tree Is In Trouble What signs indicate your trees may not be perfectly healthy? Below are five main ailments to look for: 1. Trunk Damage Peeling bark or gaping wounds in the trunk are both indicators of structural weakness. Vertical cracks may indicate structural damage to the trunk and greatly affect the likelihood of your tree’s survival. Also, check the bark; when a tree ages, old bark will fall off on its own and eventually be replaced by a new layer of bark if the tree is healthy. If new bark doesn’t reappear and areas of smooth wood remain, this can be an indicator your tree’s health is on the decline. 2. Bare Branches If your tree’s leaves don’t come back in the spring or they begin to fall before autumn arrives, it could be a sign of disease or lack of moisture. On dead branches of deciduous trees (trees that shed their leaves annually), dead leaves will cling well into the winter instead of dropping to the ground as they would on a healthy tree. Dead branches relegated to one side of a tree can also indicate serious trunk and root damage. Lastly, watch for cracked stems or branch forks; tight, V-shaped forks are more prone to failure than open U-shaped ones. 3. Damaged Roots Roots can run deep underground, and damage isn’t always visible. One serious sign of root damage is a sudden and noticeable lean to the tree. Another signal is small branches sprouting from the trunk at the base of the tree. This branching is known as epicormic shoots and these can represent that the tree is under severe stress. Heaving soil at the tree base is another potential sign of an unsound root system. 4. Fungus Large fungus, called shelf or bracket fungus or “wood conchs”, on the trunk or branch of a tree can indicate that your tree is experiencing internal rot and anything beyond the fungus may be dead or dying. Mushrooms may also grow in areas just above the root system, which can be an indicator of root decay. Watch for clusters of mushrooms growing around the base of the tree, but even mushrooms growing in your lawn could be helping decompose an already dying root system. 5. Location Trees may be damaged during construction, so be careful not to run over roots or damage branches with large equipment, like a backhoe. If other trees are removed from the area, a tree may experience an increase in its exposure to sun and wind, which can be detrimental to its health. A trees’ health can also be compromised by poor drainage in the yard; too much water could actually be a bad thing. Hiring a Professional is Best If you notice any signs of trouble with your trees, be sure to consult a professional, especially one that’s been certified by either the International Society of Arboriculture (ISA) or the Tree Care Industry Association (TCIA). Both organizations have accreditation programs, adhere to a code of ethics, and require prior experience in the field of arboriculture. Be sure that any professional you hire has the appropriate liability insurance in place. You could be opening yourself to a large exposure of unnecessary risk that could cost you thousands or even tens of thousands if your contractors do not have coverage for their workmanship or injuries to their workers. Tree trimming can be very dangerous, so call someone who is experienced and properly protected. To find an arborist in your area, call TCIA at 1-800-733-2622 or run a ZIP code search on treecaretips. org. ISA-certified arborists can be found through a search tool at isa-arbor. com. --- - Published: 2024-11-19 - Modified: 2025-05-14 - URL: https://nreig.com/understanding-liability-coverages-for-investors/ - Categories: Insurance Education - Tags: liability coverage, liability insurance Welcome to today's episode where we're diving into a crucial, yet often overlooked topic for real estate investors, liability insurance. As a real estate investor, protecting yourself from potential risks and legal claims is key to safeguarding your business's future. In this episode, return guest, Casey Carter is sharing why liability coverage is vital and the types of liability coverage you should consider to ensure you're fully protected. What is liability coverage? When investors are purchasing insurance, they may see multiple different lines of coverage. One line of coverage is liability, which protects you financially from being sued for someone else’s injuries or property damage. There are multiple types of liability, but it is, in fact, one of the most important coverages you can obtain. In many cases, property damage costs are minimal compared to liability claims. Everyone knows how expensive lawsuits can be. And liability coverage is what’s protecting your finances. Why is it so important for investors to have liability insurance? I think the biggest importance is the out-of-pocket expenses. If someone is injured, or God forbid, dies on your property, you could be looking at a half-a-million to a million-dollar lawsuit. Slip and falls are common liability claims and those range between $10,000 to $50,000. Those aren’t small chunks of change and not everybody has that lying around. So, again, liability coverage is there to protect you financially. Let's talk about liability limits. What are those and can you tell us what per occurrence and per aggregate mean? When you're looking at your policy documents, you're going to be looking to the right side of your certificate of insurance. You may see numbers like $500,000/$1,000,000 or $1,000,000/$2,000,000 and have no idea what those mean. Those are your limits. The first number is per occurrence, which is the amount that your policy will pay out at any given occurrence. So, if someone slips and falls that is one occurrence. At NREIG, everything we sell has a minimum of $1,000,000 per occurrence limit. So, at any given occurrence, you could receive up to $1,000,000. Now, if someone slips and falls the next month, that’s when we get into aggregate limits. Multiple occurrences in a policy term can add up to your aggregate. For example, if you have two separate slip and fall accidents in a policy term, both those occurrences would add to your aggregate. For investors who self-insure their property exposure, can they purchase liability coverage separately? Absolutely. And more than anything, I would recommend that they have that premises liability. If you’re self-insuring your property and a loss occurs, you may need a new roof. That’s not as costly as someone getting hurt on your property. You may be able to recover from a $25,000 property loss, but not a lot of people are going to come back from a $1,000,000 lawsuit. You mentioned premises liability, which is a type of liability coverage. Can you go over what premises liability covers? Yes, premises liability is for expenses related to third-party individuals who were injured or had property damaged on the premises. It’s not for owner injuries or paid workers, like a contractor. (You’ll want to have a GC or artisan policy for that. ) This is for an instance where someone is injured on the property, and you were found negligent because something could have been done to avoid that injury. That’s really what premises liability is. It covers the premises you own and does not extend outside of that particular location. What are some other types of liability coverage that real estate investors may be interested in? There are few. First, let's say you're a real estate investor and you're acting as your own property manager. In this case, you could obtain professional liability, also called errors and omissions (E&O). It covers professional acts. So, if you are the property manager, any acts surrounding that could potentially be covered under professional liability. At National Real Estate Insurance Group, this coverage is called PMEO (Property Management Errors & Omissions) and can be purchased as an add-on. It’s one of the few programs that we have where you can buy into an aggregate limit. Another liability coverage investors could find useful is Products and Completed Operations. This isn’t going to be covered under your premises liability, and it’s for exactly what it sounds like, products and completed operations at the location. Maybe you built the deck in the back of the property, and you sell the property. Twenty days after you sell it, the buyer walks on the deck, and it falls. That’s something you would want to make sure that you had products and completed operations for. Lastly, investors may want personal and advertising injury. Again, it’s not included in a premises liability policy. It covers things like libel, slander, or invasion of privacy – non-physical injuries. That's something that’s also excluded in a premises liability policy. Maybe you said some things about a competitor that may or may not have been true and it damaged them financially. That’s where the personal and advertising injury comes into play. What should investors consider when determining how much liability coverage they should purchase? There are a lot of different points we could discuss, but I’ll highlight the most important, consider your risk exposure. Do you have a single-family residence where a mom, dad, and two kids are renting out a property from you? Or do we have a 20-unit apartment complex where we have 20 different families living at this location? Liability limits aren’t typically per unit but per location. And a 20-unit apartment carries a lot more risk exposure than a single-family home. So, for a 20-unit apartment, you may want to look into an excess liability or umbrella policy to provide more coverage. You should also consider weather patterns. Is the property in the middle of the desert? Or is it in Montana, where they get a lot of ice and snow and it’s easy for someone... --- - Published: 2024-11-11 - Modified: 2025-05-14 - URL: https://nreig.com/why-maintaining-a-relationship-with-your-insurance-agent-is-vital/ - Categories: Insurance Education, Investing Tips - Tags: policy reviews Similar to other real estate investing relationships like lenders, contractors, and more, maintaining a relationship with your insurance agent is vital for a successful business. While most investors will agree that insurance is necessary, they don't realize how they can customize their policy based on their investment strategy. Today, Scott Kroening, NREIG’s Program Managing Director, is sharing why it's important to maintain a relationship with your insurance agent and other tips for success in insurance. Let's start with finding the right insurance agent. What are some things that investors should consider when choosing an insurance agent they trust with their business? The first thing is the agent’s willingness to educate and provide explanations to the client. As agents, we want to educate our clients, but in order to do that we have to be educated first. There’s a lot to know about insurance, and policies have a lot of information in them. One thing about NREIG is we really take the time to educate our team, especially when industry and policies change. This way we are able to better serve our clients. Another thing is just having the resources to find answers and options. We have a team of 25 agents and are growing. Within that team, there are different backgrounds and levels of experience. A team with claims, underwriting, and other experiences is a valuable resource. One thing that's a little unique to us is finding someone who understands the unique risks associated with real estate investing. Insuring rental properties is different from owner-occupied properties, especially when it comes to occupancy status. When your property changes occupancy status, the risks change, and it is important to properly insure those risks. An agent that understands that and makes it easy to navigate is vital. Lastly, find an agent that will learn your portfolio and business strategy. Someone who will want to grow with you. We’ve had clients start with one or two properties and then over the course of a few years grow to ten to twelve properties and so on. It allows you and your agent to build your relationship. When you get an insurance policy, you’re not just paying for the coverage, you are also paying for expert advice. Utilize it. Once they've found an insurance agent they trust, why is it important to maintain that relationship? As agents learn your goals, it allows for more personalized service and better support. They can offer catered strategies and find you places to save. We like to say, “one size fits none. ” And that means that we know everybody's strategy is different. We have some clients who inherited a property and fell into being an investor. We can help them better understand their needs. Conversely, we can also help those seasoned investors with further understanding insurance. How should an investor build a long-term relationship with their agent? Communication probably jumps out to me the most. Insurance is not everybody’s favorite topic, especially with someone who has a lot of assets in real estate and is probably pretty busy. It’s not something they really want to think a lot about until there is a loss. Filing claims can run a lot smoother when you’re properly insured and proper communication assists with that. When there is a change in your property, like maybe you sell it or turn a long-term rental into an Airbnb, you have to communicate with your agent. We know communication is a two-way street. So, we will also reach out, if we haven’t spoken in a while. Yearly, we’ll do a review of your portfolio and make sure we are on top of everything. What should an investor expect to discuss during those annual policy reviews? There’s a lot of nuances with this. First, make sure everyone is listed correctly on the policy. For example, maybe your lender changed. If there is a loss and your policy information isn’t correct, chances are payments won’t be correct. Again, I've mentioned this a couple of times, but the occupancy status needs to be checked. Let's say you have fifty properties and they're all in different stages. Maybe a new construction is now sold, or maybe you bought a property to flip and it is now tenant-occupied. Those things change over the course of a year. And if we're not correct in how we have that set up in the event of a claim, you may not be paid correctly or at all. We’ll also look at if your risk tolerance has changed. As you gain more properties, you may be willing to self-insure more and want to increase deductible amounts, which would decrease your premiums. Or maybe it’s the opposite and you are more concerned about a loss and want to decrease your deductible. Another thing is looking at which forms your properties are on, basic or special, and if you are still comfortable with the losses they may cover. If your property is in a safe area and you don’t believe theft to be a risk, then you may want to have basic form and save some money there. Ancillary products are another item to review. Are there gaps in your policy that you may want to fill, such as Flood coverage? There are also products for Terrorism, Earth Movement, and more. Overall, I would say it’s a good time to think through your current situation and consider if a loss happens, how you would like your insurance policy to react. Do you have any last-minute burning advice for the viewers? I touched on so many different things, but the bottom line is, you’re paying a premium, and that comes with expert advice. We have a team of experts that is simply a phone call away. It’s so frustrating to call and get a machine. So, when I think of how to put the client first, I always think about how clients should be able to speak to a person when they want to and receive that expert... --- - Published: 2024-10-31 - Modified: 2024-10-31 - URL: https://nreig.com/additional-insured-and-loss-payee-roles-in-insurance/ - Categories: Insurance Education - Tags: additional insured The designations of Additional Insured (AI), Loss Payee, and Lender’s Loss Payee often cause confusion for those not well-versed in insurance. While these roles might not directly impact an investor's day-to-day business, understanding each helps avoid potential complications in the claims process and ensures all involved parties are protected as intended. Additional Insured An Additional Insured (AI) is any person or entity other than the policyholder that has an insurable interest in the property. This could include a business partner, property manager, or lender. Additional Insureds are added to policies to protect themselves in cases where they either have a financial stake (as with property policies) or some liability exposure (as with general liability policies). Each Additional Insured listed in a policy is entitled to the coverage available under that policy. This means Additional Insureds have the right to make claims on the policy when it concerns the insurable interest outlined in the contract. However, they are only listed on claim payments if they are also designated as a loss payee, which we’ll discuss later on. Changes in partnerships, mortgagees, or property management can lead to inaccuracies in Additional Insured listings. If a name or role is inaccurate, additional documentation must be provided to update the Evidence of Insurance. Without these updates, errors may occur in coverage or claim payments and could even delay claims settlements, potentially causing issues for both the policyholder (you, the investor) and the AI. Loss Payee A Loss Payee is a third party with a direct financial interest in the property, most commonly a lender, but may also be a business partner or private investor. This designation ensures that if there is a covered property loss, the Loss Payee will receive payment alongside the insured. However, being named as Loss Payee does not grant any rights under the policy beyond the claim payout. The insurer is not obligated to provide coverage or settle a claim with the Loss Payee if the loss is denied to the insured. The insurer is not required to notify the Loss Payee that coverage is in force. Instead, the Loss Payee is simply included in any payment following a covered claim. Misunderstandings around these rights can be avoided by clarifying these distinctions early on in business dealings and in contracts. Lender’s Loss Payee The Lender’s Loss Payee designation provides a higher level of protection for lenders by creating a direct contract, or “privity,” between the lender and the insurer. This protects the lender’s financial interests even if the policyholder does not meet their obligations or commits a wrongful act. With a Lender’s Loss Payee clause, the lender’s interest is protected, even in cases where the insured’s claim would otherwise be denied. The Lender’s Loss Payee designation is often favored by lenders because it includes additional benefits. For instance, if coverage is cancelled or not renewed, the insurer is required to notify the lender. This allows lenders to stay informed of any changes to the policy that might impact their financial interest. For example, if an investor’s policy lists the lender as a standard Loss Payee, the lender and the insured would both be listed on any payout check for a covered loss. But if a policy provision or non-compliance by the insured prevents payment, the lender would also forfeit the payout. Conversely, if the lender is named as a Lender’s Loss Payee, they may still be entitled to payment even if the insured is disqualified due to non-compliance or other policy provisions. Avoiding Potential Complications Accurate designations of Additional Insureds, Loss Payees, and Lender’s Loss Payees keep claims processes smoother and ensure all parties have clear, documented roles in the event of a loss. Understanding each distinction helps investors navigate claims, avoid unnecessary disputes, and maintain transparent communication with lenders and partners. If you have additional questions about these roles, feel free to contact your Client Service Advisor! --- - Published: 2024-10-11 - Modified: 2025-06-26 - URL: https://nreig.com/umbrella-excess-liability-policies-what-investors-need-to-know/ - Categories: Insurance Education - Tags: excess liability, Premises liability, umbrella insurance Umbrellas are one of the most misunderstood insurance policies. Investors oftentimes assume they don't need liability coverage if they have an umbrella policy, and that's simply not the case. Today, Jacqui Price, EVP of Underwriting at NREIG, is sharing what investors need to know about umbrella policies. Welcome back to the Insured Investors podcast. What is an umbrella policy? Umbrella policies are a way to garner additional liability coverage beyond just your underlying policy. They are also a way to provide an extra layer of coverage to the owner, whether it be an entity or a person. It's a way to get additional liability coverage above and beyond your primary limit of coverage. It's important to note that umbrella policies do not eliminate the need for investors to buy primary liability coverage. And they don't offer any protection for the property itself. It's strictly liability coverage, not property coverage. They don't kick in until after the limits of your primary liability policy are exhausted, which is why you have to have a primary policy for an umbrella to have an effect, because the primary policy has to pay out first. The terms “excess liability” and “umbrellas” are often used interchangeably, but they're not the same. What are the differences between the two? An umbrella policy can extend across multiple lines of business. For example, with a business venture, you could have commercial auto coverage, business owners coverage, and rental property insurance. Those are all different lines of liability coverage. A true commercial umbrella policy can extend over and above all of those different lines of liability coverage. If you have multiple types of liability policies, an umbrella policy may be right for you. An excess liability policy just extends over one line of liability coverage. So, if the only additional liability coverage you need is for premises liability on your investment properties, then you may only need an excess liability policy. Outside of excess liability and umbrellas, are there any other options? There are. Before you purchase an umbrella or excess liability policy, you should consider how much you have as your primary liability coverage. Some insurers will start premises liability coverage at $300,000. If that’s not enough, then you could look at raising that limit. NREIG offers liability limits starting at $1 million per occurrence with a $2 million annual aggregate. That's our base coverage for premises liability and that is a per location limit, meaning every single location you have insured with us has at least those limits. We do know that some of our investors prefer higher liability limits. Therefore, we offer up to $2 million per occurrence with a $5 million annual aggregate per location. Increasing your premises liability limits per location can be a better way of protecting your assets than an excess policy. Because if that excess liability policy is exhausted, then the rest of your locations are left without any excess liability coverage. Increasing your limits per property is oftentimes more affordable too. Are there any misconceptions about these policies? I think the biggest misconception, which we've alluded to, is that you don't have to have a primary liability policy for an excess liability policy to be valid. This isn’t true. As I said, the primary liability policy must pay out to its fullest extent before the umbrella or the excess liability policy can come into play. It's also important to know that in most cases, what's excluded on the primary policy is also excluded on the umbrella policy or the excess liability policy. In other words, if something’s not covered on your primary liability policy, it's generally not going to be covered by your excess coverage. So, it's very important to make sure that you have adequate primary liability coverage. What should investors know before purchasing an umbrella or an excess policy? There's really no right or wrong answer as to whether or not the amount of coverage you have in your underlying policy is right for you. It truly is dependent on the investor and what their appetite for risk is. If you feel like your $1 million/$2 million limit is sufficient and you're never going to have a liability loss above that, then you may not have a need to go out and get an umbrella policy. However, if you are worried, then that is something that you should talk to your agent about and decide from there. Investors should also consider how many units are at a location. There are going to be more people on and off the property at a 12-unit apartment complex versus a single-family home, which leads to greater exposure of a slip and fall or some other kind of liability risk. Another consideration is the area in which you are investing. Some areas of the country are simply more litigious than others and are more likely to grant the claimant a settlement after a slip and fall. Lastly, consider if the location is owned by you personally or owned by a business entity, like an LLC. If you own the property personally, that means your personal assets are at risk should a loss occur. If I owned a location personally, I know I would sleep better at night if I had a lot of liability coverage on hand. But if my risk was tied into a business venture, I may not need as much liability coverage. However, every investor, every business plan, every person is different. Your agent can almost sell you as much liability coverage as you could possibly want, but it's not always necessary. It's up to the individual investor how they feel they should be insured. Some insurance agents unfamiliar with real estate investing may advise clients to insure their rental property on a personal dwelling policy - which typically includes a $300,000 to $500,000 limit of liability - and purchase a personal umbrella to extend the limit of coverage over both their personal and investment properties. Is that a bad... --- - Published: 2024-09-11 - Modified: 2025-06-26 - URL: https://nreig.com/mastering-coinsurance-avoiding-costly-penalties/ - Categories: Insurance Education - Tags: coinsurance Adequately protecting your investment properties requires more than just purchasing an insurance policy; it involves understanding the key factors, like coinsurance, that can severely impact your coverage and payouts. Coinsurance is an industry-wide property provision that requires you to insure your property to a certain percentage of its total value, typically 80%, 90%, or 100%. If you do not meet this requirement at the time of loss, you could face penalties, which means you might not receive the full amount you expect from a claim. Coinsurance is intended to prevent the underinsuring of properties. For Example... Let’s say you have an investment property insured for $100,000 with a $3,000 deductible. The property experiences a $40,000 loss, so you file a claim with your insurance carrier. Any time you file a claim, an adjuster will visit the property, and part of their responsibility is to determine how much it would cost to rebuild the property if it had been a total loss. For this example, we’ll say the adjuster determines that the cost to rebuild is $250,000. After referring to the declarations page of your policy, the adjuster sees you have an 80% coinsurance clause, meaning when you entered into this policy agreement with the carrier, you agreed the property would be insured to 80% of the true replacement cost. Had you been carrying $200,000 or more of building coverage (80% of $250,000), you would have met your coinsurance clause. However, as you are only insured to $100,000, you will be assessed a coinsurance penalty based on the percentage you are underinsured (in this scenario, 50%). This penalty is incurred prior to figuring in the deductible and depreciation. So, in this scenario, the coinsurance penalty would reduce your claim amount to $20,000 minus your $3,000 deductible. So, your insurance carrier would pay out no more than $17,000 for your $40,000 loss. Avoiding Coinsurance Pitfalls If you’ve ever read through your declarations page and wondered why you are insuring your 1,000-square-foot home for $200,000, the answer typically lies within the coinsurance clause. In an attempt to avoid coinsurance penalties in the event of a loss, many insurance carriers will inflate the Insurance to Value (ITV) of your property. They often do so to prevent situations in which clients, already dealing with the stress of a loss, aren’t further burdened by penalties for underinsurance. The unfortunate reality is that this can lead to you paying higher premiums for coverage levels you may never need to claim. At National Real Estate Insurance Group, we take a different approach. We work closely with each investor to determine a fair valuation per square foot for the property, ensuring coverage needs are met without unnecessary costs. We offer Actual Cash Value (ACV) coverage with no coinsurance starting at $75 per square foot. If you’re looking for more comprehensive coverage, our Replacement Cost (RC) option begins at $120 per square foot, also without coinsurance. Why Choose NREIG? Choosing NREIG means peace of mind. Our no-coinsurance policies are designed to protect you from unexpected penalties without overpaying for coverage. With flexible coverage options and a team of experts dedicated to helping you navigate the complexities of insurance, NREIG supports you in every step of your investment journey. --- - Published: 2024-09-03 - Modified: 2025-06-26 - URL: https://nreig.com/landlord-insurance-offers-better-protection-for-investors-than-homeowners-insurance/ - Categories: Insurance Education - Tags: landlord insurance Homeowners insurance and landlord insurance are two distinctly different products, each designed for specific property uses. As a real estate investor, understanding these differences and insuring your properties under the appropriate policy is crucial to protecting your assets and avoiding costly claim denials. Let’s look at some distinctions between these two types of insurance. Liability Protection Homeowners Insurance: Liability coverage under a homeowner policy generally protects the homeowner against claims related to their personal activities and incidents that may occur on the owner-occupied property. Liability limits under a homeowner policy are typically lower than that of a landlord policy, often in the range of $100,000 to $500,000, which may be adequate for your personal residence, but is likely insufficient for the heightened risks associated with rental properties. Landlord Insurance: Liability coverage under a landlord policy is tailored to the unique exposures of rental properties. Having tenants, their guests, and even contractors on the premises can increase the likelihood of liability incidents like slips, falls, or property damage, which you, as the landlord, could be held responsible for. Because of this, landlord policies start with higher liability limits, often $1 million or $2 million per occurrence. Landlord liability typically includes coverages such as accidental injury, wrongful death, medical expenses, and defense costs. Loss of Use vs. Loss of Rents Homeowners Insurance: This policy often provides Loss of Use coverage, which pays the owner occupying the property for additional living expenses should the home become uninhabitable due to a covered event. It may help cover the cost of hotel stays, meals, and other expenses for the homeowner until they can return to their residence. Landlord Insurance: Instead of Loss of Use, landlord policies typically offer Loss of Rents coverage, which compensates the landlord for lost rent if the property is damaged by a covered event and the tenant is unable to occupy the unit. This type of coverage is vital for investors who rely on rental income as part of their financial strategy. Coverage Gaps & Exclusions Homeowners Insurance: Homeowners policies often contain exclusions that make them unsuitable to protect rental properties. For example, these policies typically exclude coverage for damage caused by tenants and pollution or carbon monoxide exposure. Additionally, homeowners policies often limit (or exclude altogether) coverage for theft and vandalism, which can be more common in rental properties. Landlord Insurance: Landlord policies are designed to fill the gaps mentioned above and more, offering comprehensive coverage tailored to rental property risks. For example, landlord policies often include options for Theft and Vandalism coverage as well as offering additional products like Property Management Errors & Omissions, Equipment Breakdown, and NREIG’s Tenant Protector Plan. These policies are structured to offer the specific protections investors need, ensuring you are not left uncovered for risks that have the potential to result in significant financial loss. Risks of Insuring Investment Properties Incorrectly It’s not uncommon for investors to mistakenly insure their rental properties under a homeowners policy. New investors who are unfamiliar with insurance policies might not realize the crucial differences between homeowners and landlord insurance. Some investors may choose to stick with what they know, opting for the more convenient route of maintaining their existing policy rather than exploring a new, more suitable landlord policy. But perhaps the biggest reasoning investors use to justify insuring their investment properties under a homeowners policy is cost. Please understand, while homeowners policies often appear cheaper, they do not offer the necessary coverage needed for a rental property. Opting for a lower premium at the expense of appropriate coverage can leave you vulnerable to denied claims. Additionally, if a rental property is misrepresented as owner-occupied, any resulting claims could be denied on grounds of material misrepresentation- a form of insurance fraud. This scenario can leave investors personally liable for damages and losses that would otherwise be covered under a properly designed landlord policy. It’s also important to consider how your insurance policies are structured. Personal assets, such as your primary residence, and business assets, like your investment property, need to be kept separate, especially in cases of liability issues. If you include your investment properties under your personal liability policy, you risk exposing all of your assets in a legal dispute. For example, if a tenant dies from carbon monoxide poisoning and the lawsuit exceeds your $300,000 homeowners liability limit, both your personal and rental assets could be at risk. Similarly, a personal incident, like a car accident involving your child, could threaten your rental properties if they are insured together. The Bottom Line Treating your investment properties like the businesses they are means more than just managing tenants and collecting rent- it means securing the proper protection for your assets. Homeowners insurance may seem familiar, convenient, or even cost-effective, but it’s simply not designed to handle the unique risks associated with rental properties. With the right coverage from a landlord insurance policy, you can avoid unexpected events turning into significant financial setbacks. As a real estate investor, making informed insurance decisions is crucial for maintaining a strong and profitable portfolio. Don’t take chances, ensure your properties are covered correctly. --- - Published: 2024-08-28 - Modified: 2025-06-26 - URL: https://nreig.com/everything-investors-should-know-about-insurance-claims/ - Categories: Insurance Education Real estate investors typically experience a property loss at least once in their career. And when it comes to filing an insurance claim for that loss, it can be complex and overwhelming. So, today, our favorite claims expert, Zach Baker, is going to share what every real estate investor should know about insurance claims. We are discussing if filing claims impacts your premium, how to avoid claim denials, and more. Let’s get into it! Does filing a claim impact your insurance premium? The answer is one that nobody likes to hear, which is sometimes. There's a lot of factors that go into premiums and that's what makes it hard and tricky for people. The thing you want to remember is that insurance is a transfer of risk. You're paying your premiums, the carrier is collecting the premiums, and in return, the carrier is taking the risk away from you. When you're filing claims and the carrier is paying claims out, at some point they will likely try to reevaluate if the premium they’re collecting from you is sufficient for the claims that they have been paying and the risk that they’ve taken from you. If you file a claim where no payment is made, it likely won't have an impact on your premium because the carrier won't have to really reevaluate what they're collecting from you. But what you want to avoid doing is filing a lot of claims where no payment is made because it's not just the quantity of payments made by the carrier for the risk, it's the quality of the risk as well. So, if you file a lot of unnecessary claims, at some point the carrier is going to wonder if you are a desirable risk or not. It's not just whether there's a payment made, it's also the frequency of unnecessary losses that you want to be aware of. What would insurance companies consider an unnecessary claim to file? Basically, any claim where you really didn't need to involve insurance in the first place would most likely be an unnecessary claim. If you file a claim, go through the investigation, and there’s no claim payout, there's no benefit to you as the insured. One example is when the damage is right at or below your deductible. If the damage is at or below your deductible, you won’t receive a payout making it an unnecessary claim to file. Another example is when the damage is caused by a peril that's not covered by the policy. If you have a policy where water damage isn't covered and you file a water damage claim, the carrier is going to investigate, turn around and say the claim is denied. You also want to be aware of filing unnecessary claims, where you file just to see if you have damage. You really want to avoid using your insurance company to decide if you have damage to begin with. We’ll sometimes see a storm roll through an area and a client does not know if they have hail damage, so they file a claim to find out. You really want to avoid that if you can. Any maintenance-type claims or frequent controllable losses should also be avoided because those are more in the sphere of you, as a homeowner, maintaining the property. You want to find a good resource, whether it’s your agent, a trustworthy contractor, or both, to help you evaluate if the damage is significant enough for a claim. What is a controllable loss? A controllable loss is a claim that you file where maintenance is a component of it. For example, you have a pipe that bursts because it freezes. You fix the damage and now it’s your responsibility as the property owner to prevent that from happening again. That could look like adding insulation, moving or updating the pipe, or dripping water when it’s cold - anything to prevent that pipe from freezing again in the future. Another example is if you have a tree branch that falls on your house. You don’t want to have that claim occur again. So, you would want to get the tree inspected and possibly trim or remove the tree. If these types of losses happen frequently, an insurance carrier will see that these claims could have been prevented with maintenance. So, if you have a pipe burst claim three years in a row, at some point the insurance carrier is going to look at your desirability of risk and wonder if you are doing your job as a property owner and if they want to continue to insure you. Make sure you understand that insurance is not a maintenance plan. Why do claims get denied? There are a lot of reasons. But at its core, it’s the policy that is going to decide whether a claim is covered or not. Policies outline excluded perils. So, not every loss is going to be covered. The most common excluded loss is going to be wear and tear or mold. If you file a claim for those things, you’re likely going to get denied. Policies also have a timeline for how long you have to file a claim. So, if you wait too long to file a claim it may be denied. And if you’re committing fraud or misrepresenting, that claim is likely going to be denied. Other than that, you want to make sure that your policy information is accurate. If it’s not, there’s a chance your claim could be denied, or the policy could be invalid altogether. Let’s talk more about incorrect policy information. What are some key policy details that could lead to the denial of a claim? The biggest, most important policy detail that needs to be accurate is who you have listed as the Name Insured. The Name Insured always needs to be the legal owner of the property because the carrier wants to know who has an insurable interest in the property. If a property is... --- - Published: 2024-08-22 - Modified: 2024-11-11 - URL: https://nreig.com/insuring-mobile-manufactured-homes-with-nreig/ - Categories: Coverage Options - Tags: manufacture homes, mobile homes In our Program, mobile homes are defined as homes that no longer have wheels and are on permanent foundation, making them fixed dwellings. Manufactured homes, on the other hand, are factory-built or prefabricated and prepared on-site with no permanent foundation or basement. National Real Estate Insurance Group offers coverage for both types of investment homes on our unique monthly schedule. What does Mobile Home Insurance cover? Dwelling Dwelling coverage protects against sudden and accidental direct physical damage to the property. For instance, if severe weather were to cause a tree to fall on the roof, resulting in structural damage, you may be covered for the cost of repairs. National Real Estate Insurance Group offers Basic Form coverage for mobile homes with no limit on the number of homes insured in one park. Covered perils may include: Fire Lightning Windstorm and Hail Explosion Smoke Aircraft and Vehicles Riot or Civil Commotion Volcanic Action Sprinkler Leakage Vandalism Malicious Mischief Premises Liability As you may know, when you own and rent out a mobile home, you open yourself up to liability risks. A Premises Liability policy offers you protection against liability claims that can arise from incidents on your property. Examples may include: If someone were to slip and fall on your property If one of your tenant’s dogs were to bite someone on your property If your tenant suffers medical issues from a carbon monoxide leak *Medical expenses are included. Our liability options start as low as $7 per month, per property, and come with a $1MM per occurrence, $2MM aggregate limit of liability. How much coverage do I need? When selecting your coverage amount, it’s important to consider how rapidly mobile homes depreciate in value. It is easy to over-insure and therefore, overpay for insurance on your mobile home. NREIG allows you to choose your coverage amount (at a minimum of $75 per square foot and a maximum of $119. 99 per square foot), so you never overpay for coverage. In our Program, mobile homes are not eligible for Replacement Cost coverage. Our Sales Advisors and Client Service Advisors are always available to discuss coverage amounts, as everyone’s situation is different. What deductible is right for a mobile home? Your property deductible is the amount withheld from your insurance payout for a claim. You don’t need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When selecting your property deductible, consider the smallest claim you would actually file. For instance, if you wouldn’t bother to file a $1,000 claim, then it doesn’t make sense to carry a $500 deductible. Remember, a lower property deductible means a higher insurance cost. Our liability insurance has no deductible. Add More Coverage to Your Mobile Home Insurance With NREIG, you have the option to include additional coverages to your Mobile Home Insurance package. Our product offerings range from the Tenant Protector Plan to Earth Movement to additional liability limit options. Other Structures Loss of Rents Property Management Errors & Omissions Service Line Coverage Terrorism & Political Violence Tenant Protector Plan Equipment Breakdown Flood Insurance Ordinance or Law If you have questions regarding insurance for mobile homes or any of the ancillary products listed above, feel free to contact a Sales Advisor or your Client Service Advisor. --- - Published: 2024-08-13 - Modified: 2025-05-14 - URL: https://nreig.com/insuring-pools-and-other-attractive-nuisances/ - Categories: Insurance Education - Tags: play equipment, pools Pools, playgrounds, trampolines, and other outdoor equipment are great amenities for tenants. But when it comes to insuring these items, investors may not be covered for what they think. To help guide investors through insuring pools and other popular attractive nuisances, we brought return guest, Jason Jones! Jason is the SVP of Risk Management at NREIG with an insurance career spanning over 20 years. Welcome back, Jason! What is an attractive nuisance? An attractive nuisance is anything interesting enough to attract a child, teen, or someone who happens to walk by. They may feel like your pool, trampoline, playground, or something else is interesting enough to cause them to enter another’s property and try it out. If an investor or a tenant has one of these on their property, is it up to them to then let their insurance agent or landlord know? Or is it up to the agent and/or landlord to do some kind of inspection? Those are all somewhat true. It's important for the investor owner to identify what risks are on their property. That's going to be through regular visits to the property and communicating with the tenant. Then, some insurance companies do their own underwriting. So, they may drive by the property to get an idea of what's going on there, while others do rely on the responses from agents, who are getting that information from their investor clients. Why is it important for investors to know and understand what an attractive nuisance is? There are specific laws in place for certain counties, districts, or even cities that investors must adhere to. And as an investor, you want to make sure that you're in compliance with those for not only legal reasons but also because they pose safety risks. So, if you have a pool, the laws may require you to have a locked gate. Or if your trampoline is there, it may be required to be tied down. The other side of that is if you fail to take some of these measures, you could be subject to penalties and fines. But more importantly, you can also have injured kids and people, which is a potential liability hazard. Do insurance policies protect investors if they are liable for any injury resulting from an attractive nuisance? Insurance companies vary to different degrees in how they provide coverage for attractive nuisances. It's going to be important for you, as the investor owner, to understand what your policy covers. And you can find that out by reading your policy and asking your agent, both would be helpful. Some policies exclude coverage for damage and injuries, while others offer limited coverage. Again, you can check your policy and with your agent. It's important that you take those steps to understand your coverages. Pools are a popular amenity, especially for vacation rentals and apartment complexes. How do you suggest investors insure pools to prevent any type of liability lawsuit? Not all insurers will cover pools. So, if there’s a pool on your property it’s super important to know if it’s insured with your current carrier. And if it’s not, you need to identify a carrier that would be able to help you out with that. Typically, an agent will have resources or connections to help. On the other hand, if you can't find anyone, then that is a liability that you don't necessarily want to have without some other form of protection. When you have a pool, your liability risks increase and it's important that you have enough liability coverage. We recommend at least $1,000,000 in liability coverage. You have to think about what all goes into a liability case- adjusters fees, defense lawyers, and, if multiple parties are injured, you may have multiple parties filing a lawsuit. You want to have enough protection, enough coverage, to handle everything because those lawsuits can get expensive really quickly. There are some steps you can take to prevent liability lawsuits, and that entails making sure you have a fence with a locked gate and/or putting tarps on your pools. Keeping up with general maintenance is also going to be important. Could an investor be held liable for an injury that occurs on a playground or other attractive nuisances owned by the tenant? Unfortunately, the investor can be held responsible to some degree even though they're not directly involved. These types of lawsuits generate claims against anybody that's tied to the property. And because the event occurred on the investor's property, they could be held liable. So, as an investor, you want to understand what is on your property. What are some measures investors can take to reduce attractive nuisance liability concerns? We’ve outlined some of them with pools by using fences, locked gates, and tarps. You can also use other security measures, like cameras. For trampolines in particular, you want to have them secured to the ground and make sure there is a safety net around them. And with playgrounds, you want to make sure they are properly installed and maintained. You could also have wells, ponds, construction materials, etc. With those, it's important to inform all tenants where those items are located and of any rules regarding them. If you can, store and lock up equipment that is not meant to be used. Be specific about your expectations and how attractive nuisances are to be managed so that everyone's on the same page by outlining it in the lease. On the other hand, if you can’t find a way to effectively manage them or are concerned about liability risks then consider removing or not allowing attractive nuisances. That is the ultimate protection. Again, outline expectations and responsibilities in the lease. This can help protect you and gives the tenant a document to revisit when they have questions. Lastly, let’s talk about property damage. How are attractive nuisances insured if say a playground gets destroyed by a tree branch? Property damage follows the policy. If it's the investor’s property, there is... --- - Published: 2024-08-12 - Modified: 2025-05-14 - URL: https://nreig.com/how-to-insure-coastal-properties/ - Categories: Floods, Hurricanes & Storm Surges, Insurance Education - Tags: flood, hurricanes, named storm Tropical storms and hurricanes can cause severe damage to properties in coastal locations. According to the NOAA Office for Coastal Management, the average hurricane costs $22. 8 billion in damages. So, knowing how to properly insure hurricane-prone locations can be challenging. To explain coverages for coastal locations and how they work together, we brought return guest, Casey Carter. Casey is the VP of Business Operations and has over 8 years of industry experience. Welcome back! What are the unique challenges associated with insuring coastal properties? Coastal properties are unique because, like you said, there is an extreme chance that you're going to see damage from hurricanes or named storms- they're kind of one and the same, depending on which company you're working with. Flooding damage is also going to be much greater the closer you get to the coast. The ocean is a big body of water and that water coming in towards your property is going to cause damage. So, hurricanes, named storms, and flood damage, are all a much greater risk when you get towards the coast. How do investors with properties on the coast ensure that they have proper coverage for hurricanes? Depending on what company you're working with, they again could have a different name for hurricane coverage. So, you want to make sure that you have a keen eye on your policy and are most importantly asking your agent, “Do I have coverage for this? ” With NREIG, for example, we have Named Storm coverage. It’s for any storm given a name by the National Weather Service, which could be tropical depression, tropical storm, cyclone, hurricane, or any of the sort. You have other companies that are just going to straight up call it Hurricane Insurance. So, you want to make sure that that coverage is stated or endorsed in the policy itself. If you don't already, it could come with a separate wind and hail deductible or it could be the same as your current deductible. Either way, you want to absolutely make sure you have coverage for hurricanes if you are living along the coast. Again, you're also going to be at a higher risk for a flood. So, make sure that you have coverage for floods, which is going to be any rising water from a natural source. If it rains so much that that water starts to pile up from the ground - that's going to be flood damage. So, Flood is a completely different coverage from Named Storm coverage? That is correct. They will be two separate policies. If you live along the coast, your agent should be giving you quotes for both of those coverages. We see insurance companies have exclusions regarding locations in different tiers along the coast. What is a tier? Tiers are classifications used to define coastal areas and determine the risk of a tropical storm or hurricane. You want to make sure that you understand how the company you are with defines this. I sound like a broken record, but your agent is going to be the best person that can explain those things to you. Tiers can be classified by distance from the coast, or they can be classified by different counties. Here at NREIG, we like to make it very clear-cut. We have determined which counties are going to be Tier 1 and Tier 2. Then, anything more inland is going to be Tier 3. With us, Tier 3 locations automatically include Named Storm coverage. With Tier 1 and Tier 2 properties, you have the option to include coverage. Some investors may think they really don't need Named Storm coverage because they've owned these properties for 25 years and no named storm or hurricane has ever hit and it’s not going to. That’s the investor’s decision to take on that risk, and if you’re in those tiered locations, you can choose and say, "I don’t want that coverage. " Many times, you're going to see your premium drop because of that. You just have to know, as an investor, that you're taking on that risk. How do investors know what tier their property is in? The best way to figure that out is to contact your agent or ask them for a map. Each state may have different appetite guides and policy restrictions. If you have a policy that excludes name storm or hurricane coverage, is there a way to add that coverage back on? Yeah, absolutely. Asking your agent for that coverage is going to be your best route. They may have to shop your policy in order to find that coverage for you or possibly just endorse it on to the policy you currently have. But specifically, with NREG, it's as simple as giving us a call and asking for the coverage to be added to your property. Now, once you do that, you need to understand you can’t add, remove, and add the coverage back on during hurricane season. The same goes for Flood coverage too, because that, of course, is a risk. You can get that coverage added to your policy, but you need to understand they are different lines of coverage, and you need to see both of those terms on there. As with any policy and any investor, it's just really understanding what your risk tolerance is and what you are willing to deal with. Again, if you think that a hurricane is never going to hit your house and you have money to fix a few roofs without dipping too far into the bank, Named Storm coverage may not be for you. However, it’s a completely different mindset for somebody who has one property, works a nine to five, and is slowly building up their portfolio. The risk appetite is completely different for those two investors. How do floods impact coastal areas differently than others? Again, you're closer to the water. There's no bigger body of water than the ocean. And when it comes in force,... --- - Published: 2024-08-01 - Modified: 2025-10-24 - URL: https://nreig.com/covering-your-liability-risks-with-nreig/ - Categories: Coverage Options, Insurance Education - Tags: liability risks, pmeo, Premises liability, property management errors and omissions While insuring the physical structure of a property is crucial, it is equally important to consider the liability risks you face as an investor. Most property owners are familiar with the significance of carrying a property insurance policy, but the potential financial impact of liability incidents is often underestimated. A single liability claim can cost significantly more than a property loss, resulting in financial burdens such as legal fees, medical costs, and potential settlements. Thus, having applicable liability coverages is not just recommended, but essential for protecting your real estate investment business. Below are brief outlines of NREIG’s liability offerings. Premises Liability (PL) We cannot stress enough the importance of carrying at least a Premises Liability policy for any property you own. As the property owner, you have certain legal responsibilities to ensure the safety of visitors, both invited and uninvited (e. g. trespassers or squatters). It is your duty to properly maintain the property, repair any potential hazards, and warn residents of potential dangers. Failure to adhere to these responsibilities may be considered negligence, and resulting injuries or death could get you caught up in a lawsuit. NREIG’s Premises Liability includes coverage for: Payment of bodily injury or property damage for which you are legally obligated to pay. Medical expenses for the injured party. Coverage for carbon monoxide pollution. A sublimit for canine liability to protect you in case of damages caused by a dog on your property. Defense costs such as counsel, court fees, and judgements. *NREIG can offer Liability-Only policies as well as Vacant Land Liability. Our limits for Premises Liability start at $1 million per occurrence with a $2 million aggregate per policy period, per location. Higher limits of $1 million per occurrence, $5 million aggregate and $2 million per occurrence, $5 million aggregate are available upon request. Umbrella and Excess Liability policies are available to NREIG clients through our Program partner. Please contact your Client Service Advisor for a referral. Property Management Errors & Omissions (PMEO) While some investors opt to hire a professional property manager (PM), others may choose to take on responsibilities themselves. These duties may include setting rent rates, screening tenants, managing leases, handling maintenance, and resolving tenant disputes, all of which open you up to a whole new set of liability risks likely not covered by your Premises Liability. PMEO insurance is for property owners who self-manage their rentals. PMEO covers the unique liability risks associated with property management responsibilities. NREIG’s PMEO includes coverage for: Exposures on the premises due to property management activities not covered by premises liability. Errors and contract performance disputes. Tenant discrimination in violation of fair housing laws. Defense costs such as counsel, court fees, and judgements. --- - Published: 2024-07-26 - Modified: 2025-05-14 - URL: https://nreig.com/why-you-shouldnt-insure-investment-properties-under-homeowners-policies/ - Categories: Insurance Education Insurance is a vital component for any business. And having the proper insurance coverage can make a big difference when a loss occurs. We have Scott Kroening with us today to share why investors shouldn't insure their properties under their Homeowners policies and what they should consider instead. Scott spent the first seven years of his career as a Probation Officer. He realized he was never going to be happy in law enforcement. So, he set off to find a new career where he could still help people and that’s when he found insurance. His first role was as a Catastrophe Claims Representative with Farmers Insurance. There, over a course of 24 years, Scott worked his way up through many different roles and promotions. Last year, Scott decided to join the NREIG team and now serves as the NREIG Program Managing Director. Scott and his wife invest in renovation properties, doing most of the cosmetic work themselves. Welcome to Insured Investors! Why do people insure their properties under homeowners policies? I would say there's a few reasons. It's not common knowledge for most people to understand how an insurance policy reads. If you're a newer investor, haven't spoken with your agent, or you're not familiar with your policy and what the coverages or limits are, incorrect assumptions are made. The problem is you don't have clarity around which direction you could go, or you may not even know that there's a difference. So just flat lack of experience is the thing that I would point out first. Second, from a human path of least resistance perspective, it's quicker and easier. Most people, if they do have knowledge of their homeowners policy, just do what’s easier and what they’re familiar with. And then the next thing is cost. Most of us are very cost-conscious. We want to save as much money as possible, and I get that, but if you're paying for something that will potentially not be covered, what's the point of paying for it at all? Is it a bad idea to insure investment properties under a traditional homeowners policy? You have to kind of ask yourself, “What are the policies designed to do or designed to cover? ” So, on the homeowners side, you're thinking through things like your personal, owner-occupied property. On the commercial side, it's a little different. You're thinking through tenants and the property. Liability differences between an owner-occupied and tenant-occupied home can be huge. That renter probably doesn't care quite as much about their rental home as they would about their own home, which can lead to a lot more liability issues. Carriers know that and that leads to a different cost, because additional risk equals additional premium. It comes down to just being aware of the differences between an owner-occupied and tenant-occupied home. And if you don't know that, naturally, you have got to reach out to the people who do. There are a couple of other things too, like coverages, in general, are going to be different. There are limit gaps as well. You want to make sure that whatever you're getting on your policy is enough coverage and that those specific a la carte items you may want, like Flood or Earth Movement, are included. Being insured incorrectly or inadequately could lead to claim denials. Tell us more about the coverage gaps that investors are exposed to when insuring investments under homeowner policies. We could have a whole entire additional podcast on just this topic, but there are a couple key points that come to mind. For example, limit gaps. On the homeowner side, the liability limit is typically $300k or $500k. And again, with the additional risks with investment properties, you need more than that. I personally would never advise a client to have those limits that low. Commercial liability policies typically have higher limits. At NREIG, we start at $1m per occurrence and you can go from there. It's worth it because liability claims can get pricey. You must think about the costs of defending yourself on the legal side, costs can increase quickly. The other thing that comes to my mind is how exclusions differ between policies. One specific blanket exclusion on the homeowners side is the total pollution exclusion. It literally excludes anything carbon monoxide related, meaning you would be left defending the claim on your own. Now in our policies that we provide, it is a Commercial policy, which means we could afford coverage for that. It’s not just flat excluded. How could claims be impacted if you are covered under the wrong policy? You're most likely not going to be paid on a claim if your property is insured incorrectly. Generally, you want to keep your personal and business assets separate. If you are sued, you don’t want to have those assets tied together because they could go after everything – personal and business. How you structure a policy is important too. How you'd like a Named Insured on your personal house is going to be your name, maybe your spouse's name too. With investment properties, investors oftentimes own the property under an LLC. In that case, your Named Insured needs to be your LLC, not your personal name. If it’s not it could lead to delays or even non-payments. Commercial policies are better structured for businesses in that way because you can keep those expenses separate. What should you do if you plan to turn your current residence into a rental? First and foremost, be educated on what this change means for you. Contact your insurance agents and let them know. They may need to change the status. If you don’t, there’s a thing called material misrepresentation. It’s a form of fraud. And a lot of people don’t even realize when they’re making this mistake. I’m actually one of them and I’ll tell you about it here in a second. Let’s say you insure your rental property on a homeowners policy, there’s a fire... --- - Published: 2024-07-22 - Modified: 2025-06-26 - URL: https://nreig.com/how-to-insure-vacation-rentals/ - Categories: Insurance Education Vacation rentals are a great way for investors to earn a steady income, build wealth through property appreciation, and diversify investment portfolios. What investors may not understand is why a typical homeowners or landlord insurance policy may not be enough coverage. Today, our return guest, Jacqui Price, is here to share how to insure your vacation and short-term rentals. Jacqui is the EVP of Compliance at National Real Estate Insurance Group. Her vast insurance experience over the past 12 years has made her an expert in many areas of our program and has contributed to her success. Welcome back, Jacqui! Why do you feel like vacation rentals are so popular? Because we've seen a huge uptick in the last three to five years. I think vacation rentals started as a more affordable rental than maybe a hotel room. But I think over the last four or five years, they've really morphed into more of a convenience. I have a couple of vacations coming up and I’ve searched high and low to make sure I could find a vacation rental that had a separate bedroom for my children and that they had their own bed. Whereas in a hotel room, all four of us would be crammed in one room with only two beds. Being able to travel somewhere else but still have that at-home feeling and a good place to retreat to at night is another perk. We've seen a lot of our clients investing in vacation properties. So, we want to talk through how the insurance looks. First, what is considered a vacation rental? Yes. We have a lot of investor clients with us, that as you said, have started investing in vacation rentals. With vacation rentals, instead of that long-term tenant, that 12-month lease, you are leasing the property for a shorter time. Maybe it's a weekend, maybe it's a week or two. Anything under 30 days is going to be considered a short-term or vacation rental. Some people will rent out a portion of their personal home, like an upstairs loft or downstairs apartment as a vacation rental. So, that's another option as well. And then lastly, people will buy a secondary home, where they like to vacation. But when they're not using it, they’ll rent it out as a vacation rental. And as far as NREIG is concerned, and I believe most carriers, as long as you're using it as an investment property more than 50% of the time and using it as a personal vacation home less than 50%, they will still insure it as a vacation rental. And you should insure it as a vacation rental because it is primarily an investment property. Why are homeowners and typical landlord insurance policies not enough coverage for vacation rentals? A homeowners policy is for your personal home. Think about your personal liability, personal contents, and the building in which you live. All those things go under a homeowners policy. Now, I already mentioned that sometimes people may use part of their home as a vacation rental. My advice is to make sure that your carrier or your agent knows that you're doing that so they can make sure that your carrier is okay with it. Because sometimes homeowners policies have short-term rental exclusions. Furthermore, a landlord policy is for a traditional 12-month rental. So, there’s one tenant and they bring in all their furniture, live there night after night, and raise their kids there. They're going to be treating that like their home. It's going to be the same people coming on and off the property for at least 12 months. Whereas with the vacation rental, you have a lot more people on the property. You might have new guests every week. You might have a cleaning crew come in between the guests. You probably have a maintenance crew that comes. And so that’s a different risk. Insurance carriers look at it differently because not only are they not likely to treat the property as well as a long-term guest because they're going to use it for three days and never come back, but there's also a higher liability risk. It's definitely advisable to make sure that your agent and carrier know that it's a short-term rental so they can make sure they insure you properly. What are some of the specific coverages that investors need for a vacation rental? The first thing I will say is liability coverage. First and foremost, for any piece of property that you own, you should have liability coverage. You never want to have a lawsuit on your desk that you don't have coverage for because someone slipped and fell on a property. So, I think it's most important that we talk about liability coverage first. Like I just said, you have all kinds of different people on the property with a vacation rental. That's a lot of different people that could injure themselves on the property. So, you want to ensure you have liability coverage all the time, regardless of who might be there. You also want to think about the amenities that you are offering your guests. Because if you have a pool, that increases your chance of a lawsuit, and you need to make sure you have insurance for that. If you have a trampoline, swing set, or something in the backyard, you want to make sure you know how your policy is going to react to that type of amenity, and you need to make sure you're comfortable if there's an exclusion there. Also, if you're offering kayaks to your clients or some other type of water sport amenity, you need to know how your coverage is going to react should something happen. So, there are all different kinds of things that you need to think about from a liability perspective on a vacation rental that you don't have to think about on a typical landlord policy. Next, property coverage. Your property coverage covers the dwelling,... --- - Published: 2024-07-22 - Modified: 2025-08-18 - URL: https://nreig.com/what-you-need-to-know-about-our-new-tenant-protector-plan/ - Categories: Coverage Options, Insurance Education, Tenant Relations - Tags: liability, renter's insurance, tenant damage, tenant protector plan, tenants, vacation rentals Do you require your tenants to carry renters insurance in your lease? Do you enforce it? Your tenants can go out in the open insurance market and purchase an annual renters insurance policy by paying a couple months of premium upfront. So, what happens when money is tight and they fail to make their monthly renters insurance payment? Unless you are listed as Additional Interest on their coverage or follow up with their insurance agent monthly to confirm their coverage is in good standing, you’ll have no way of knowing when it lapses. It will never fail, the tenant-caused loss that damages your property will almost always happen when their coverage has lapsed. To minimize your exposure as a landlord and simplify your insurance processes, NREIG developed the Tenant Protector Plan® (TPP) and Tenant Protector Plan x (TPPx). These are our cost-effective options to offer an alternative to --- - Published: 2024-07-08 - Modified: 2025-10-17 - URL: https://nreig.com/nreig-offers-insurance-solutions-for-every-type-of-investment-property/ - Categories: Coverage Options - Tags: condo insuarance, investment property insurance, log cabin, property insurance, Renovation Insurance, Vacant Property Insurance Protecting your investments with the right insurance coverage is crucial. At NREIG, we offer a variety of insurance options tailored to meet the unique needs of each investment property you own. Below is a brief overview of the property types we insure and the coverage provided by each standard policy. Insurance for these property types can be customized with additional ancillary products. Tenant-Occupied Rental Properties When renting out your investment property, it’s important that your insurance is specifically designed to cover tenant-occupied homes. Our standard Rental Property Insurance includes: Dwelling Coverage- to protect the physical structure. Premises Liability Coverage- for injuries or damages that may occur on your property. Vacant Properties Properties listed for sale or in-between tenants are vulnerable to a variety of risks, vandalism, theft, and fire among the most common. Our Vacant Property Insurance protects unoccupied properties from costly potential losses. Plus, with our monthly reporting form, you can seamlessly update or cancel your coverage when a tenant moves in or the home is sold, all without minimum-earned premiums. Our standard Vacant Property Insurance includes: Dwelling Coverage- to protect the physical structure. Premises Liability Coverage- for injuries or damages that may occur on your property. Properties Undergoing Renovations Major, or even minor, renovations can expose your property to increased risks. Our Renovation Property Insurance is a must-have to limit your exposure during rehabs. Our standard Renovation Property Insurance includes: Dwelling Coverage- Builder's Risk Form policy to protect the physical structure. Premises Liability Coverage- for injuries or damages that may occur on your property. New Builds or Major Layout Changes When constructing a new property or making significant changes to a home’s layout, it’s very important for you, the investor, to have proper coverage, regardless of the coverage your general contractor carries (which they should! ). Our standard New Construction Insurance includes: Builder’s Risk- to protect your property and your investment during the construction process. New Construction Liability Coverage- for injuries or damages that may occur on your property during the construction process. Please note liability coverage does not extend to general contractors or anyone hired to be on site. Contact your Client Service Advisor to learn more about GC Liability or P&CO policies. Vacant Land Owning vacant land exposes you to certain liability risks, such as accidents that may occur on the property from uninvited or even invited visitors. Should you decide to build on the land, our monthly reporting form allows for seamless transition to New Construction Insurance with no coverage interruption. Our standard Vacant Land Insurance includes: Vacant Land Liability- for injuries or damages that may occur on the premises. Vacation Rentals When renting out your property on a short-term basis, it’s essential to have Vacation Rental Insurance to limit your exposure to losses that can occur during a guest’s stay and in-between occupants. Our standard Vacation Rental Insurance includes: Dwelling Coverage- to protect the physical structure. Premises Liability Coverage- for injuries or damages that may occur on your property. Mobile/Manufactured Homes In our Program, mobile homes are defined as homes that once had wheels but do not currently and are on permanent foundation. Manufactured homes are factory built or prefabricated and prepared on site with no permanent foundation or basement. NREIG insures mobile and manufactured homes similarly with: Dwelling Coverage- to protect the physical structure. Premises Liability Coverage- for injuries or damages that may occur on your property. Condominium Units Whether you rent out your unit or are renovating it, Walls-In Condo Coverage protects you and your unit against losses you may be responsible for under your Condo Association’s requirements. Standard Condo Insurance includes: Dwelling Coverage- to protect the physical structure. Liability Coverage- for injuries or damages that may occur on your property. Log Cabins Due to their construction materials and typical remote location, log homes come with unique risks that tend to affect coverage availability and cost. NREIG developed CabinArmor as a solution to these challenges, offering comprehensive protection for log cabins where traditional insurance often falls short. Whether your log home is actively rented out, vacant, or undergoing cosmetic renovations, CabinArmor protects you and your property. Dwelling Coverage- to protect the physical structure. Liability Coverage- for injuries or damages that may occur on your property. While these are the most common types of investment properties we work with, NREIG is also capable of providing coverage for more creative investment strategies such as Subject To deals, Tax Sales, Land Contracts, etc. Contact your Client Service Advisor for more information. --- - Published: 2024-07-08 - Modified: 2024-11-11 - URL: https://nreig.com/understanding-total-insured-value-and-insured-to-value-in-rei-insurance/ - Categories: Insurance Education - Tags: insurance to value, total insured value As a real estate investor, it’s important to understand the various insurance concepts that contribute to protecting your properties. Two key terms you’ll encounter in the NREIG Program are Total Insured Value (TIV) and Insurance To Value (ITV). These concepts play a significant role in how your properties are insured and the potential payouts you could receive in the event of a loss. What are TIV and ITV? The Total Insured Value (TIV) of a location represents the combined coverage amounts on that one property policy. It includes Dwelling, Contents, Loss of Rents, and Other Structures. Essentially, TIV is the maximum amount that would be paid out in the event of a total loss claim for the property. Insurance To Value (ITV) is an amount specifically pertaining to the Dwelling coverage stated in the property policy. Unlike TIV, ITV does not include other coverages and focuses solely on the amount of coverage for the physical structure itself. Why are these concepts important? TIV provides a complete picture of the total property insurance coverage for a given location. It informs NREIG, carriers, and you, the investor, of the maximum amount of insurance being provided to any one property. Your TIV value indicates the highest payout you could receive should that property suffer a total loss. ITV ensures that the Dwelling coverage accurately reflects the value of the physical property. It also determines the maximum payout you could receive for the physical property alone in the event of a partial loss. How are TIV & ITV Values Determined? TIV Calculation: TIV is calculated by adding the Dwelling, Contents, Loss of Rents, and Other Structures coverages together. For example, if the Dwelling coverage is $245,000, Contents is $5,000, Loss of Rent is $5,000, and Other Structures is $5,000, the Total Insured Value of the property would be $260,000. ITV Calculation: ITV is based on our Program minimums of $75 - $119. 99 per square foot for Actual Cash Value (ACV) and $120 per square foot for Replacement cost (RC) coverage. To find the ITV, divide the Dwelling coverage amount by the square footage of the property. For instance, if a property is 2,000 square feet and the Dwelling coverage amount is $250,000 the ITV is $125 per square foot. Minimum TIV/ITV Requirements Minimum TIV and ITV requirements are typically set by the insurance carriers, although sometimes NREIG may have a say. These values are based on factors such as the cost of materials in the area and any associated risks. Certain areas of the country, like coastal towns in Florida, may have higher minimums due to specific risks and underwriting requirements from the carrier. Consequences of Underinsuring Failing to meet minimum TIV/ITV requirements can have significant consequences. The most notable is encountering the Coinsurance provision in the property policy. Coinsurance is a clause that reduces the claim payout if the property is underinsured. This provision requires maintaining a certain percentage of coverage (commonly 80%, 90%, or 100%) of the total property value at the time of loss. If a property is determined to be underinsured, a claim payout could be substantially reduced. Please note: In the NREIG Program, minimums are set to ensure you never risk underinsuring and encountering the Coinsurance provision. Example Scenarios Consider an investor with Property A: The Property is insured with a TIV of $250,000. This includes $240,000 for the Dwelling, $5,000 for Loss of Rents, and $5,000 for Other Structures (a detached garage). The property is 1,500 square feet, making the ITV $160 per square foot. In the unfortunate event of a kitchen fire that destroys both the property and the detached garage, the maximum payout would be $250,000, covering the dwelling, lost rental income, and the detached garage. Let’s say Property B has the same TIV, coverage amounts, and square footage. A kitchen fire occurred but thankfully did not spread to the detached garage and was contained enough that the tenant occupying the property can remain living there while the damages are repaired. The maximum payout the property owner could receive is $240,000 for the dwelling alone. Understanding TIV and ITV concepts is crucial to make informed decisions about your insurance and coverage amounts. Our team is always here to help! For any questions or to get more information about your specific insurance needs, please contact your Client Service Advisor. --- - Published: 2024-06-18 - Modified: 2025-05-14 - URL: https://nreig.com/understanding-property-insurance-policies/ - Categories: Insurance Education It's no secret that insurance policies are complex. And it can be daunting to read pages of unfamiliar terminology. But just because it's daunting, it doesn't mean you should push it under the rug until a loss occurs. Because by that time, it may be too late. Today, our return guest, Zach Baker, is simplifying property insurance policies. That way you're armed with the knowledge to tailor your coverage to your exact needs. And you'll know what you are and are not covered for before a loss occurs. Zach holds 18 years of insurance experience and is the Director of Client Experience at National Real Estate Insurance Group. He heads the team that acts as the liaison between the client and the insurance carrier during the claims process. Today, we’re talking about insurance policies, their framework, what people should be looking for, and how they should interpret it. Where do you want to start? The first thing is just how important it is to know your policies. The insurance industry is written in a kind of standard way that makes sense for most people, but it doesn't make sense for everyone, and it doesn't fit everyone's needs. So, this is all about understanding your policy, and what it does and doesn't do for you, so that you can become empowered to ensure that it fits your needs. You don't want to assume that the product you've purchased is fully comprehensive. You need to take that responsibility for yourself, understand your coverages and what it's doing for you, and then you can take the power back to yourself to make sure that it fits. Your needs are not what the general industry needs are, because everyone's different. Today, we're going to kind of pull this apart a little bit, break it down, and help people understand the best way to review it. What are the most important sections of the policy? I mean, all of them technically, but I do understand that it's a complex document. There's a lot to it, which is kind of what you talked about at the beginning. We'll talk about a few of the most important places that you want to be familiar and comfortable with. The place I would recommend everyone start is the declarations page. Sometimes it's called Evidence of Insurance or Proof of Coverage. There are different names for it, but they're all a high-level recap of the coverages you purchase. It'll have the property address, the coverage limits, the coverages you've purchased, and what your deductibles are. Some of them will include the valuation method and other things. It’s a helpful recap of what you’ve bought and what coverages are in place. So, you want to be familiar with that first and foremost to make sure that it meets your needs, especially if you haven't changed insurance in a long time. Because the reality is, that what you said whenever you first set the policy is likely what's still in place, and that may or may not fit what your current needs are. So, that's the place you want to start. And then in the body of the policy itself, there are a few important places, like Covered Property is a good one, and Covered Cause of Loss. There are also endorsements and conditions. They all do different things in the policy. That's all within the pages and pages of language that are on your policy. And we can talk about those in more detail. One thing that we'll sometimes see on declarations pages are sublimits. Can you talk about those a little bit? First, there are overall limits, which are the maximum amount that the policy will pay for a loss. Then there are sublimits, which are usually peril specific and they're designed to help limit the exposure and keep insurance as affordable as possible. Some common ones are theft and vandalism sublimits. Or, a lot of times there are limits for jewelry and cash and tree removal, it just depends on the policy. All policies have them, but it really is to limit exposure and keep insurance affordable. It's important to know which ones exist and what your sublimits are because you don't want to be unintentionally self-insuring the amount over the sublimit. In other words, the loss may be covered, but if it's limited, you still may have some exposure and it's important to know what that exposure might be. Let's go through some of the additional sections people should be looking out for. The next place I would look is the Covered Property section. That's the property within that policy's scope. Does it include contents? Does it include other structures? If you've got a service lines policy, what service lines are covered. If you have equipment breakdown, what equipment is covered? Every policy will tell you what property is specifically covered within that product. Then, I would also look at your Covered Causes of Loss, which defines what perils are covered and when they are covered. This comes from the different forms and types of coverage you can purchase. I can also mention endorsements and conditions. They adjust the policy and insurance responsibilities. But Covered Property and Covered Cause of Loss are the two big ones that you want to become familiar with. Let's move into endorsements. What does that section look like and what can it tell the insured? Property policies are just contracts that are pre-written, and endorsements just tailor that product either to an individual person or to an individual insurance company. They modify the base policy in some way. They add coverage, they remove coverage, and they modify it. Some policies have an endorsement that removes cosmetic hail damage to roofs and siding. Some policies have an endorsement that will adjust how tree removal and debris removal may be handled. You want to be familiar and comfortable with endorsements because they change coverage. OK, let's move into exclusions. What are those? Exclusions are the... --- - Published: 2024-06-14 - Modified: 2025-05-14 - URL: https://nreig.com/the-difference-between-insurance-agencies-brokers-and-companies/ - Categories: Insurance Education It's common for someone outside of the insurance industry not to know the different entities that may be involved in insuring your properties. When most people talk about buying insurance, it tends to be insurance companies that get the most attention, which makes sense considering the number of commercials we've all seen. But insurance companies are not the only avenue for purchasing insurance. Today, Casey Carter, VP of Business Operations, is going to discuss with us the different insurance purchasing avenues and how these entities may work together. Casey started in the insurance industry eight years ago in sales and service. In his current role, he focuses on business development, building partnerships, and providing training and resources. He also works closely with the programs team in the development, implementation, and rollout of new offerings. So tell us, who can people purchase insurance through? So really, there's going to be three different avenues that you can kind of, let's say, purchase your insurance through, right? It's going to be your agencies, your brokers, and through the insurance companies directly. What is an insurance agency? So, an insurance agency employs agents who are going to be authorized directly by a carrier to sell a product. You have two different subcategories of agents. Those are captive and independent. Your captive agencies will be directly appointed with one carrier or insurance company. They're only going to be able to sell that product. On the opposite side, you have independent agents. They could be appointed with 2-3 different carriers. They're going to be able to shop coverage for you in a much more wide array of fashion. Do you have any examples of a captive versus an independent agent? Your Ma and Pa Shop down the street could be your independent agent, where it's, you know, Ma and Pa Insurance Agency. Versus, you go to a Travelers agent in a strip mall and you see the Travelers logo right outside. They're going to be authorized to sell the Travelers products directly to you. What is an insurance broker? Unlike agencies or captive agents, brokers are going to have a much wider array of carriers to choose from. Unfortunately, many of them don't have the authority to bind coverage on the insurance carrier’s behalf. They're still going to have to work with the insurance company directly or through an agent. But that's going to allow them to shop that coverage at a much more competitive pricing option for you, if that's something that you're extremely concerned about right now. They're like the middleman helping you to find the best deals, but not necessarily providing the actual insurance. What are insurance companies? The insurance company is also known as the carrier or the insurer. When you think of who's going to pay the claim when that tornado hits your house, that's really who you're going to be thinking of in that aspect. They are on the hook for the financial risk that's associated with insuring the location and they're going to be the ones that are setting the underwriting guidelines, appetite, and expectations of the policy. Let's talk about how carriers (insurance companies) and agencies work together and their different roles when it comes to insuring properties... Who sets rates and bills the insured? The carriers are going to be establishing the rates. They're going to be the ones that are communicating any type of changes like deductibles, rate structures, and coverages to the agencies. They're the ones that are determining geographic locations, underwriting considerations, the whole shebang on that aspect. Then they communicate those changes back to the agent or agencies. Then you take the agent or the agency, and they're going to be communicating those changes to the client or the insured. They're processing and collecting the payments, but that money doesn't stay with them. When they are collecting it, for agency-billed, they're paying it back to the carrier. If it's direct-billed, then it goes directly to the carrier. The agent is the one that's setting payments up with the insurer. They're keeping it all organized, talking to you about the coverages you might have, etc. , but they're not necessarily the ones who are determining the claims. Their job is to represent you, the insured, and get that information directed over to the carrier. Who sets the guidelines and exclusions on insurance policies? This is really the carrier. You have your average Joe on the street and they're working with an agent because that's who their parents work with so they're working with them now. A lot of people think that that agent is the one that's raising their rates. That they're responsible for their wind deductible going up. That's not the case. It's the carrier who's determining all of that. They're the ones that set the risk appetite for their entire company. Whether it's writing habitational risk or workers comp, they determine where they want to place coverage, what rate they want to charge, and what deductible structure they want to charge. The agency, in this aspect, is taking the risk that they're being provided by the insured. Let's say that they had a habitational dwelling policy that they needed written. They take the underwriting information and submit it to the carrier. Now, it's also in their best interest to know what particular risks carriers are willing to take. That's where the agent is really providing value to the insured - giving them the best opportunity to place coverage for a particular risk they have. Why do carriers have different appetites for risk? If a carrier has had quite a few losses, especially in a particular area, they might shift their appetite at that point to stay in business. Everybody knows insurance isn't a charity, right? These carriers are in it to make money. When losses happen in different areas of the country, we're going to see rate increases moving forward. These big losses are typically in relation to different weather phenomena, like... --- - Published: 2024-05-31 - Modified: 2025-06-26 - URL: https://nreig.com/understanding-your-insurance-policy/ - Categories: Insurance Education - Tags: exclusions, insurance policy, policy conditions, sublimits An insurance policy is more than just a piece of paper; it is a contract that details what you are covered for, any exclusions that take away coverage, and the conditions that must be met for coverage to apply when a loss occurs. It can be difficult for those with limited insurance knowledge to comprehend some of the complex, high-level language of their policy. However, understanding the nuances of your insurance policy is crucial for ensuring that it fits your specific needs and avoiding unpleasant surprises when filing a claim. While every part of your insurance policy is important, the following sections are especially critical to understand: Declarations/EOI/Proof of Coverage These pages offer a high-level summary of the coverages you have purchased. Essential details such as the property address, coverage limits, deductibles, and evaluation methods are included in these sections. Reviewing these pages regularly ensures that your coverage aligns with your current needs, which may change over time. Covered Property & Covered Causes of Loss If the idea of reading your policy is overwhelming and you’re not sure where to start, take a look at the Covered Property and Covered Causes of Loss pages. The Covered Property section specifies what property is covered. It may include coverage for the home itself, contents, other structures, service lines, etc. Review this section of your policy to ensure that your property fits within the scope of the products outlined. The Covered Causes of Loss section of your policy defines the perils covered and the scenarios in which coverage may be afforded. Causes of loss are usually physical damage or direct loss to the property caused by a specific event. Our Program offers two types of coverage forms: Basic and Special. Each provides different levels of protection, and knowing which coverage form you hold is essential to prevent misunderstandings about what types of damage or loss are eligible for coverage. Read more about the differences between Basic and Special Form coverage here. Sublimits Sublimits are specific limitations within your policy that set the maximum payout for particular types of property or risks. They are designed to help limit exposure and keep insurance affordable by capping the payout for certain claims. It is common for things like theft, vandalism, and tree removal to carry sublimits. While your policy may cover a particular type of loss, the payout might be capped at a certain amount. Knowing these limits can provide insight into where you might have exposure or gaps in coverage, helping you to have a plan ahead of time, should one of those losses occur. Endorsements & Exclusions Endorsements are modifications to your insurance policy that tailor its coverage. These adjustments may add, remove, or alter the existing coverage. For instance, some policies in our Program include endorsements that remove coverage for cosmetic hail damage to roofs and siding, which means any damage affecting only the appearance (not the functionality) would not be covered. Other endorsements may adjust the terms for things like tree or debris removal after a storm, specifically how and when these costs are covered. Understanding the endorsements in your policy is vital because they directly impact the scope of your coverage, potentially affecting your claims and out-of-pocket expenses. Exclusions outline what is not covered by your insurance policy, and they play a significant role in defining the boundaries of your coverage. Insurers often exclude coverage for exposures that are either too large or too costly to insure, such as nuclear attacks or earthquakes, which require separate, specialized policies. Additionally, exclusions may encompass issues that are considered the property owner’s responsibility. Things like general maintenance problems, wear and tear, or mold are almost always excluded because they are conditions that develop over time and can usually be prevented with regular upkeep. Remember, insurance is designed to cover sudden and accidental damage, not gradual deterioration or preventable issues. Knowing the exclusions in your policy helps you understand what risks you retain as the homeowner and ensures that you do not mistakenly expect coverage for incidents which your policy specifically omits. Policy Conditions The responsibilities and obligations that you, as the insured, must fulfill to maintain the validity of your insurance contract are outlined in the Policy Conditions section. Failure to adhere to these guidelines can result in claim denial or even the cancellation of your policy. Some common responsibilities include: Truthfulness on applications and claims: Misrepresentation or omission of important details can lead to the denial of claims or the voiding of your policy. For example, if you falsely state the occupancy status of your property as “occupied” when it is vacant, and a theft occurs, the insurer may deny your claim based on this misrepresentation. Property inspections: Typically, following a loss you are required to make the property available for inspection by the insurance company or third-party adjuster. This allows the insurer to assess the damage and verify the cause and extent of the loss. Maintenance and upkeep: As previously mentioned, insurance is designed to cover sudden and accidental damage, not issues arising from neglect or poor maintenance. As a policyholder, you are responsible for regular upkeep of the property. Notification of changes: If there are significant changes to your property or its use, you must inform your insurer. Renovations, changes in occupancy, or additions of high-value items can affect your coverage needs and the terms of your policy. Maintaining general knowledge of the items listed on your declarations page, covered property, covered causes of loss, sublimits, endorsements, exclusions, and policy conditions empowers you to make informed decisions about your coverage. The sections highlighted above, though not exhaustive, are a few of the critical areas that require your understanding. Review your policy regularly, twice per year is a good start. Don’t be afraid to ask questions if something doesn’t make sense, our team is here to help you! --- - Published: 2024-05-23 - Modified: 2025-10-24 - URL: https://nreig.com/how-to-insure-fix-and-flips-renovation-properties/ - Categories: Coverage Options, Insurance Education When doing major renovations at your property, renovation insurance is a must have. Renovating a property comes with a unique set of risks, so it's important to have the right insurance coverage to limit your exposure. To ensure investors have the right coverages in place while flipping and renovating properties, we brought Ann Cook to the show today. Ann is a licensed Realtor in Missouri and Kansas and has worked with several investors during their real estate purchases. The work translates seamlessly to her role at NREIG as a sales advisor, who assists investors with choosing their insurance coverage. Who should consider renovation insurance? Anybody who is doing any kind of renovation on a property. If you're freshening it up for the next tenant or if you're doing a down-to-the-studs remodel, it's definitely something you want to have in place. What coverage do you need for investment properties that are undergoing renovations? Just like any other investment property, you're going to need dwelling coverage. There are a couple of forms available based on your insurance needs and your appetite for risk, but you definitely want dwelling coverage and premises liability. The main key with renovations is you want to make sure that you have a Builder's Risk policy, and that it includes a vacancy provision since no one is going to be living there at the time of the renovations. We, at NREIG, don't dictate how much you must insure a property for, but renovations make it a little bit different. You want to make sure that you have the value of your property before renovations insured and you also want to make sure you're insuring your invested capital (aka renovation budget) as well. You want your payout to be your invested capital amount, not the total insured value like traditional insurance would be. What does a dwelling policy cover for renovation properties? So, like I said, you want to make sure it includes Builder’s Risk. You have Special Form or Basic Form based on your appetite for risk, but you also want to make sure that there is Builder’s Risk. That way we know that there's renovation work taking place. It doesn't cover the workers that are working on the property. What does premises liability insurance for renovation properties cover? If somebody were to trip over a tool and fall, there's a pool on the premises and somebody were to be injured by it, and attacks by canine animals, those would all be included in the premises liability coverage during renovation. Premises liability is coverage for the unknown. Especially during the renovation project, you never know what could go sideways. There's a lot of moving parts and a lot of moving people in a renovation project. So, you never know what could happen. Next up, since premises liability won't cover general contractors or similarly employed workers, what is the first step investors should take to make sure they are protected? The first step is going to be making sure that your contractors are licensed and insured. Their protection will cover them while they're on your premises as well. And if they're not licensed and insured, your premises liability will not pay. So, the first step, making sure you're using licensed and insured contractors. And you would want to be named as an Additional Insured on their policy while they're doing work on your property. But if you're doing your own work, you want to make sure you have additional coverage as well. What are the additional coverages investors should have if they're doing renovations themselves? They definitely want to have coverage for Products and Completed Ops and Personal and Advertising Injury. Completed Ops is for the work that they're going to be doing on the premises. For example, they put a new deck on the back of the property and a year later something malfunctioned in the work that they did. They want to make sure they have Products and Completed Ops protection for the liability risk of that. Personal and Advertising Injury provides coverage for libel and slander, not physical harm, but more personal harm for claims against words. Are there any renovations that our clients can do to keep down their insurance premium costs? Absolutely. Anything that's going to help prevent a loss in the future, such as repairing their roof, making sure that there are no holes and nothing is going to be leaking in there. Also upgrading the wiring can help. Unknown wiring is something that can be covered, but it does come with a higher premium cost for the unknown. So, if they can make sure that modern wiring is in place, and no aluminum, that will give them some savings. What about renovations that may increase their insurance premiums? Anything structural that you're doing to the property or adding to the property, especially livable space, is going to add to your premium. Your insurance will be based off your square foot that's livable on the property. So, if you add a room or finish a basement, it will add to the square footage increasing your premium. -- Game Segment: Best Cities to Flip Houses in 2024 -- See if you can guess the best five cities to flip houses in 2024! Real Estate Skills identified these locations based on factors like median home value, days on the market, household income, active listings, unemployment, and foreclosure rate. 5. Cleveland, OH - Home to the Rock and Roll Hall of Fame and Lake Erie. 4. Chicago, IL - Famous for their deep-dish pizza and bean sculpture, Cloud Gate. 3. Philadelphia, PA - Home to the Liberty Bell. Rocky famously ran up stairs located here. 2. Jacksonville, FL - Their NFL team is the Jaguars. And they’re home to the Saint Johns River, one of the laziest rivers in the world 1. Fayetteville, NC - This is about an hour north of Raleigh and Babe Ruth hit his first home run here. Watch or listen to... --- - Published: 2024-05-21 - Modified: 2025-05-14 - URL: https://nreig.com/how-economic-conditions-and-natural-disasters-affect-the-insurance-market/ - Categories: Floods, Hurricanes & Storm Surges, Insurance Education, Weather Events, Wildfires Climbing insurance rates are being felt by homeowners and real estate investors across the country, in some areas more than others. As insurance becomes more expensive, property owners can't help but ask themselves what they can do to cut costs in this insurance market. To answer those questions and more, we have Jason Jones in the room today. Jason Jones is the SVP of Risk Management at NREIG. He holds a Bachelor's in Arts and Science from the University of Missouri, Columbia, and a Master's in Information Systems from the University of Phoenix. With an insurance career spanning over 20 years, most of his industry experience was gained through his role as an adjuster, primarily handling property and liability claims with various companies. Throughout Jason's time at NREIG, his various leadership positions have exposed him to almost every department, including client service, claims, client account review, underwriting, and risk management. Why are property insurance premiums rising at the rate that they are right now? There are a ton of reasons why if you kind of dig into it. But the larger parts of that are an increase in extreme weather events, labor and material shortages, and inflation. That's just kind of perpetual and we're seeing that across the entire country. How does extreme weather impact the insurance market? The extreme weather events along with the labor and material shortages and inflation, have a huge impact because when you have one loss, that loss cost in 2000 then turns into a larger loss cost in 2024. We are seeing a larger frequency of these types of losses. We have more hurricanes, more tornadoes, more wildfires, floods, etc. than 20 years ago. Ultimately, there are more losses and there’s an increased cost of managing the repairs. The data we researched showed the average number of billion-dollar losses 10 years ago started at say 10 and to this point, we've pretty much doubled that amount. The most expensive weather events are hurricanes. You'll see those mostly in Florida, Texas, and Louisiana - those sorts of areas along the coast. But we did see one here recently in California. Overall, the weather is more volatile in general and that's also creating some issues for the insurance market as it struggles to keep up. You also have wildfires, which typically are going to be California and Colorado, but they’re expanding to other states. Now, you see them in Oklahoma, parts of Florida, and all over. The causes range from a simple car fire due to overheating on the side of the road to the typical littering of cigarettes and even falling power lines. So, when the number and severity of natural disasters increase, the amount and cost of property insurance claims rise because insurance carriers must keep up with payouts. What's the response from carriers with the increase in natural disasters? The carriers by and large are taking a closer look at where they'd like to ensure locations. You see a lot of the carriers pull away from areas that are more prone to those weather events, like Florida. Louisiana is another example. There's just been so much devastation there due to hurricanes and flooding. So, the actuaries are having a field day trying to figure out why their rate and deductible structure are not working in those areas. Because they’re not profitable. In response to that, you'll see an increase in standardized deductibles, an increase in rates, and then carriers pulling out of areas altogether just so they can remain profitable and viable for other areas in the country that they insure. How do labor and material shortages impact insurance premiums? Construction costs have surged over the past few years due to a shortage of skilled labor. There's been a struggle to retain and find some of those skilled workers, which has forced construction companies to charge more for labor. In addition to those increased material costs, the supply chain disruptions associated with COVID also led to delays in construction materials and scarcity of items that people had become used to having available to them. Now, natural disasters have further impacted supply and demand, making it even more difficult for construction workers to keep up. So, you'll see a lot of contractors out after a widespread hail or hurricane loss, etc. and they'll be in a position where they can pick and choose what job is going to be more profitable for them. Those delays create issues for insurance companies because they have to pay more, find more options, or work with clients who have decided they are going to do the work themselves. After all, they can’t find anyone, or they are tired of waiting. I think we understand that not everybody's built to do it themselves, which causes more issues down the road. But delays aren’t any better because when tarps are on roofs for months and months, more damage is created on top of it. Overall, the shortage leads to other issues that create increases in cost, including paying more for claims because no one's able to get out there and repair damages. So we know inflation creates a cycle of rising costs across all industries. But is the insurance industry any different? No, it's the same thing going on everywhere. You'll see the cost for an employee at your local department store increase because there's a shortage of labor. Because the way to get and keep more employees is to pay them more. Insurance companies, like everyone else, are trying to evaluate how to manage their costs because they have employees and other expenses to pay. That all goes into how they evaluate their risk. It's all kind of a cyclical thing and the insurance industry isn't immune to that inflation. What areas are really feeling these rate increases and why? I think the easy answers for this one are Florida and Louisiana. It's easy to see that with the number of hurricanes and the issues they cause. It's a... --- - Published: 2024-05-15 - Modified: 2025-05-14 - URL: https://nreig.com/the-difference-between-flood-water-damage-and-sewer-backup/ - Categories: Insurance Education, Water - Tags: flood coverage, sewer and drain backup, water damage You may be surprised to learn that your definition of flood and your insurance company's definition may differ. And we get it. It's a confusing topic, especially for those not in the insurance industry. But understanding the differences between flood, water damage, and sewer backup may help determine what type of insurance you need for your property and may even save your business. So today, we brought Denise Laakmann, Sales Advisor at National Real Estate Insurance Group. Her job is to educate investors on the differences in insurance coverage and assist them in determining the best solution for their business model. Denise found her way into the insurance industry at a military event when a local insurance agency mentioned they were hiring. She applied, got the job, and 10 days later passed her licensing exam. And the rest is history. Denise is the chapter secretary at the Kansas City CPCU (Chartered Property Casualty Underwriter) Society and is currently earning her CPCU designation. She served in the military for eight years, has a major in music education, and can play the trumpet and French horn. What is considered a flood? Flood occurs when water from natural sources, whether it be a river, a bank, a lake, or whatever the case may be, breaches the banks. An example is heavy rains that over-saturate the grounds with the water and cause it to seep into the foundation of a property. It's coming from external water sources. Do most property policies cover flood damage? No. It is a separate coverage. It’s usually excluded from the policy itself. So, if you want Flood coverage, you're going to have to get a separate Flood policy. Is this something that an insurance agent would generally tell you? Probably not. They're probably not going to say, “Hey, well, you know, this doesn't include Flood and if you want it, then you got to add it. ” It's one of those things where if you don't really bring it up, they aren’t going to say it’s excluded. You always have to watch for exclusions on your policies. When should somebody consider buying Flood Insurance? So if there’s a loan, a lot of times the lenders are going to require it depending on where the property is. If the property is in a flood zone, consider purchasing Flood coverage (if your lender doesn’t require it already). You can go to the FEMA (Federal Emergency Management Agency) website and see what flood zones you're in and check the high-risk flood areas. What are the different options when buying Flood coverage? There is an NFIP (National Flood Insurance Program) flood program, which is through the government. It is administered by the Federal Emergency Management Agency and sold through a network of other insurance companies, or you can also do it through them directly. But with the NFIP, there is a 30-day waiting period. Sometimes, if your loan requires Flood coverage, they may be able to waive that waiting period. We, at NREIG, have our own Flood program as well. What's nice about our program is there is no waiting period. So, if you need that coverage now, we're going to get you that coverage. Now how much does Flood Insurance cost? It's not cheap. You're probably going to annually pay about $700. That's a basic Flood policy, but it depends on the flood zone, the type of house, and where it's at. There are several factors that kind of play into how much that coverage would be. Would the cost also depend on geography? Yes, absolutely. If you're living in the middle of the United States, you're not looking at high flood zones. But down in Florida, where part of your property is pretty much in the water, there's a particularly good chance you're going to have a flood. What is considered water damage and why do people confuse it with flood? It's one of those things where you must think of the source of the water. Most people think there is a leak in the basement, so their basement is flooded. Technically, that's not flood damage, it is water damage. With water damage, it is a sudden and accidental discharge or overflow of water. For example, a pipe burst or an accidental overflow of the bathtub. Flood is from an external source and water is from an internal source. How would someone go about getting water damage coverage? Water Damage is a common policy exclusion. If you want to make sure you have this coverage the best thing to do is, ask your agent. You also want to look for Special Form coverage, which is the most comprehensive form of coverage that you can have. And, if anyone missed it, we have an episode that covers Basic and Special Forms. Another item that often gets confused with water damage and flood is sewer and drain backup. Can you tell us what that is and how to get coverage for it? Coverage for this is usually through an ancillary product that you can add to your policy. Sewer and drain backup is when water backs up or overflows from the sewers, the drains, or the sump pump. This could happen during heavy rains or a kid clogging the toilet with a toy. Again, people may refer to this as a flooded basement, but it’s not. It all depends on how the water enters the dwelling. So, if it seeps in from the outside, you're looking at flood damage. With internal sources, you are looking at either water damage or sewer and drain backup. NREIG offers coverage for sewer and drain backup through our Tenant Protector Plan, an ancillary product. This product also offers other coverages. However, Sewer Backup is oftentimes its own coverage and deductible limits. Let’s recap. How do these coverages differ? Flood coverage is normally excluded from your policy. You want to make sure that if you need this coverage you ask for it. A flood is when the water... --- - Published: 2024-05-07 - Modified: 2024-05-07 - URL: https://nreig.com/the-importance-of-maintaining-accurate-account-information/ - Categories: Insurance Education - Tags: additional insured, evidence of insurance, named insured The importance of accurate account information cannot be overstated, as inaccuracies in your insurance documents can lead to serious consequences. The last thing any property owner wants to deal with after suffering a loss is the frustration of filing a claim and discovering that coverage is unavailable due to a clerical error. Below are some important considerations. Named Insured The entity listed as the Named Insured on a property’s Evidence of Insurance is the primary recipient of coverage for all associated policy products. This may include dwelling coverage, premises liability insurance, and any ancillary products. Essentially, the Named Insured represents the party with the insurable interest in the property, meaning they would suffer financial loss or other hardships in the event of damage or loss. Consider this scenario: I have an insurance policy under my name, Shawn Woedl, for 123 Main Street, but tenants pay rent to my entity that actually owns the property, which I call SW, LLC. If one of my tenants slips and falls down the stairs, breaking their leg, they’re going to sue SW, LLC, because that’s where they pay their rent. If SW, LLC is not listed as Named Insured on my policy when that claim comes in, there is no liability coverage for that entity. The Named Insured on the insurance policy must always be the entity that purchased the property. Otherwise, the incorrect party will be the recipient of coverage. It’s also important to note that should a loss occur, the payee for any claim settlement will be the Named Insured as listed on the Evidence of Insurance (EOI). The owning entity must have a bank account to be able to cash/deposit any claims checks made in their name. If the Named Insured is inaccurate, and the entity is unable to cash/deposit the check, documentation will have to be provided to change the name of the loss payee to whomever the Named Insured should have been, which most likely will result in settlement delays. Additional Insured Additional Insureds are entities who have the authority to make claims on the policy or have insurable interest in the property but are not the policyholder. Each entity listed as an Additional Insured is entitled to coverage for the policy products they are named on. It’s important to note that certain roles, such as mortgagee, loss payee, and lender’s loss payee, are automatically added as loss payees on any claim settlement check. Changes in mortgagees, lenders, or partners can lead to inaccuracies in the Additional Insured information. If an Additional Insured’s name or role is inaccurate on the EOI, documentation will have to be provided to change the name/role to what it should have been. These errors can result in the incorrect party receiving coverage, claims payments, and/or delays in claims settlements. Lender Information It is crucial that we receive complete lender information when coverage is initially bound and any time the loan is sold to another mortgagee. This includes details such as: The complete name and address of the lender The fax or email address of the lender The loan number Notice of whether or not the loan is escrowed Failure to provide complete or updated lender information can lead to the following complications in both billing and claims settlement processes: Missing loan numbers- Lenders often submit escrow checks with just a loan number as the location identifier (no property address). If you have not provided us with the correct/complete loan number for each location, we are unable to identify where the funds should be applied when we receive those checks. If funds are depleted before the issue can be rectified, coverage may be canceled for non-payment. Loan sold to another mortgagee- When a loan is transferred to a new lender, it’s crucial that you update the mortgagee information promptly. The worst time for a paperwork delay is after your property has experienced damage. Avoid the scramble of getting insurance documents corrected after a loss by keeping lender information up to date. In addition to claims delays, failure to maintain correct lender information can also result in inaccurate invoicing, causing funds to deplete and ultimately leading to the cancellation of your coverage due to non-payment. Force-placed coverage- A bank or mortgagee may force-place insurance on an investment property when coverage has lapsed (for any reason) or been deemed insufficient. If your loan number is missing or the Named Insured is incorrect, the lender will be unable to update coverage information. Review EOI For Accuracy You must review and confirm the accuracy of these details for each of your locations. To do so, you will need a copy of the property’s Evidence of Insurance (EOI). To obtain a copy of the EOI: Log to the client portal --> Under “Property List” find the location you wish to view and click “View Coverage” --> Once document generation is complete, you will be able to view the EOI for the selected location. Generally, it’s a good idea to review your insurance documents for accuracy at least twice a year. Some investors may choose to use daylight saving as an indicator that it is time to check the above information. Of course, if major changes are made to your property or account information, take that as a sign to review and update as soon as possible. If you have any questions, please reach out to your Client Service Advisor. --- - Published: 2024-05-06 - Modified: 2025-05-14 - URL: https://nreig.com/basic-broad-and-special-form-coverages-whats-the-difference/ - Categories: Coverage Options, Insurance Education - Tags: basic form, broad form, special form When structuring your insurance policy, the coverage form selected plays a significant role in determining which perils are covered for your property should a loss occur. There are three types of coverage forms to choose from, Basic, Broad, and Special. Since each investor has a unique portfolio and circumstance, it's difficult to know which form to choose. To help determine this, we brought in Trevor Moss, Director of Program Sales at National Real Estate Insurance Group. Trevor started in the insurance industry three years ago when he found his passion for helping people aligned nicely with the hugely misunderstood topic of insurance. To this day, Trevor works closely with his team, helping new clients find the perfect insurance coverage. Let's start with the very basics. What is a peril? A peril is essentially a circumstance or an event that happens that will cause property damage or damage to any type of thing you would have ownership in, like a vehicle or an investment home. What are the coverage forms that NREIG offers? We offer both Basic and Special Form coverage. Basic form is going to be a named peril policy. It's only going to cover things that are listed in that policy. Special form is another Form that we offer and it's a named exclusion policy, where if it's not a named in the exclusions, it's likely to be covered. Can we list off the perils that are covered under Basic Form? Definitely. Under Basic, you have fire, lightning, explosion, windstorm and hail, smoke, aircraft and vehicle riot, volcanic action, sprinkler leakage, and vandalism. What perils are covered under Special Form? With Special, you're going to get all that Basic covers, plus collapse, falling objects, weight of ice, sleet or snow, water damage, theft, and then risk of direct physical loss. We get a lot of questions about water damage. Can you dive into that just a little bit? With water, there are really three different ways to look at it. Our water damage coverage covers water damage originating from inside the home. So, think of a burst pipe that leaked out all over the house and caused damage to the floors, drywall, etc. That's where our water damage coverage comes in. A lot of times people will think of water damage being from floodwaters - water from the external sources that get in the home with us. You would need Flood coverage for that to be covered. And then lastly, the damage from an overflowing toilet, tub, or sink is going to be covered under something we have called our Tenant Protector Plan. That covers items like sewer and drain back-up, which is not a standard offering in Special Form. You mentioned risk of direct physical loss is covered under Special Form. What is that? That's a term that's all-encompassing. If your property sustains a loss and it's not a listed exclusion that's where that coverage will come into play under Special Form. It’s basically saying if it’s not excluded, it’s included. Another peril that can confuse some investors is falling objects. How do you define that? You know the commercial you see on TV where there's space junk falling on top of a home and they say, “We cover that. ” That's where the falling objects coverage comes into play under Special Form. What about Broad Form coverage? Broad Form is a named peril policy, like Basic Form, but includes more perils than basic. We don't offer Broad Form because there's minimal advantage to that coverage for the price. It makes the most sense for our investor clients to choose Basic or Special Form coverage. Within coverage forms, there are some exclusions. What are those? The standard exclusions are mold and fungus, wear and tear, sewer and drain backup, earth movement, flood, and intentional tenant damage. Can investors buy any of those back? Yes, there are some options within our program that you can buy some of those coverages back. We have ancillary products that can be added to both Basic and Special Form policies. What should investors consider when choosing between these forms? There are quite a few things investors should consider. The NREIG team is good at walking our clients through figuring out what they need so we can best advise them. Location of the property - Is the property in the northern part of the United States? If so, there is more of a threat of frozen water pipes and weight of ice and snow. These are only covered under Special Form. Lender requirements - If there's a loan on the property, there are things that we must do to satisfy the lender's requirements, which may dictate what coverage we can offer to the client. Renovations - If they are flipping the property and there are a lot of materials going into the property that haven't been attached yet, like drywall or roofing, it may make more sense to protect yourself and have Special Form coverage, which includes Theft. That way those materials that are going on the property are covered. It doesn't cover your contractor's tools. That's not what this coverage is for. Your contractor should have their own insurance for that. Appetite for risk - Are they somebody who has a lot of cash flow to withstand a loss and wants to make a more economical decision when it comes to insurance? If so, we can look at Basic Form. But typically, we suggest Special Form so our clients are comprehensively covered. You mentioned theft while talking about renovations. What is the difference between theft and vandalism? Vandalism is going to be graffiti on the property, not necessarily taking things from it, but destroying the property. Theft is just what you think it is. Someone gets into the property, and they steal a stove, fridge, washer, dryer, and things like that. What does the cost difference look like for Basic vs Special? It's typically 20 to 30% cheaper for Basic than Special. We... --- - Published: 2024-05-02 - Modified: 2025-10-24 - URL: https://nreig.com/actual-cash-value-vs-replacement-cost/ - Categories: Coverage Options, Insurance Education - Tags: actual cash value, loss settlement methods, replacement cost Welcome to our first episode of Insured Investors. Today, we are discussing loss settlement methods. Choosing between Actual Cash Value and Replacement Cost provides a lot of confusion for investors, especially when it comes to how their claims will be paid out in the instance of a loss. So, we brought in an insurance claims expert, Zach Baker. Zach is the Director of Client Experience at National Real Estate Insurance Group. He heads the team that acts as a liaison between the client and the insurance carrier during the claims process. Zach started in the insurance industry 18 years ago as a claims intern in college. Here, he found the industry's stability and ability to help people appealing and never looked back. How are claim payouts determined? When you file a claim with your insurance company, they're going to figure out how much they owe you for the damages. The insurance company is first going to send an adjuster out to inspect the property. Then, the inspector is going to write an estimate for the damages. How much you are paid depends on your deductible and the predetermined loss settlement method that you’ve selected for your policy. We (NREIG) are the liaison with the insurance companies themselves. They're the ones who will hire the adjusters and approve or deny claims. We're happy to help facilitate conversations; however, we don't inspect, approve, or pay the actual claims. What is a loss settlement method? It’s the insurance company’s method of determining how much you're going to get paid after a loss. In property insurance, generally, it’s one of two options - Actual Cash Value (ACV) or Replacement Cost (RC). And the difference between those two is just how they handle depreciation. The reason you have depreciation involved is that property insurance, unlike auto insurance, doesn’t have a market for used building materials. Property insurance is designed to pay you for what the property is worth. Because you can't buy used drywall, the insurance companies must start with how much new drywall costs. Then, they make a deduction based on how old the drywall currently is to determine the Actual Cash Value. What's the difference between Actual Cash Value and Replacement Cost? It's all about how depreciation is handled. With Actual Cash Value, you're going to be paid for what the property is worth. And then, that's the end of the settlement for you. But with Replacement cost, the depreciation can be recovered depending on how much you spend on the repairs. A good example to think through is if you have a partial loss, let’s say a kitchen fire. The adjuster comes out and they write an estimate for the damages, and they say it’s $30,000 to fix. If $15,000 of depreciation is assessed, the kitchen has used half of its useful life. If you have Actual Cash Value and you have a $3000 deductible, your settlement will be $12,000. So, you've got the $15,000 Actual Cash Value minus your $3000 deductible. That’s why you get paid $12,000 and that's it for your claim. Now, what you do with that money is up to you. If you want to do the repairs, you can. If you want to use the money for other things or sell the property, you have those options too. Keep in mind if you don’t do the repairs and have damage to the kitchen in the future, the insurance company is not going to pay for the same damage twice. In other words, if they paid for it once and you don't do the work, they're not going to include that in any future claims. But technically, you can use the money for whatever you want. If you do the repairs AND if you have Replacement Cost coverage and say the kitchen repairs end up costing you $20,000, the $5000 spent above the Actual Cash Value settlement could be recoverable from the insurance company. Your total payout would be $17,000. So, it'd be the $20,000 ($15,000 ACV plus $5000 in extra repair cost) minus your $3000 deductible. You must pay the deductible regardless. But your settlement could be $17,000 total. Overall, it is about depreciation. It's getting assessed at the beginning no matter what. And it is a matter of if you have Replacement Cost, you can recover that depreciation. But if you do the repairs and if you have Actual Cash Value, you don't recover the depreciation. That means you have to pay out of pocket the additional repair costs. As an investor, how do I know which one to select? There are a lot of things to consider. One, and probably the biggest one, is if you imagine the worst-case scenario and the whole building burns down. What would you do with the property? Would you fix it up? Then, Replacement Cost might be a good option. If you would just clean the land and sell it or do nothing with it, then Replacement cost might not be a good choice. Because you have to do the repairs to realize the depreciation recovery. If you never intend to do the repairs, it doesn't make a lot of sense to spend the extra money on Replacement Cost coverage. The cost is roughly 20 to 25% more on your premiums for Replacement Cost than Actual Cash Value. There is a higher cost with RC because the insurance company is going to pay more after a loss. Beyond what you would do with the repairs after a total loss, think through your financial picture and appetite for risk. As with anything, you're trading a known risk, which is your premium payments, for an unknown risk of a property loss. It's the classic insurance trade. You're trying to figure out what's known and what's unknown. One thing to think about is that, unlike some other trades you have in insurance, the tradeoff for potential risk when it comes to depreciation is not static - it's not staying the same. Every... --- - Published: 2024-05-02 - Modified: 2025-05-14 - URL: https://nreig.com/how-to-insure-unique-real-estate-investment-strategies/ - Categories: Insurance Education - Tags: land contract, non-performing notes, real estate investing strategies, sandwich lease, subject to When most people hear about real estate investing, they think about short-term or long-term rentals, even renovation and flipping. But there are many real estate investment strategies and insuring them isn't always that straightforward or easy. That's why we have Jackie Price here today. Jackie is EVP of Compliance at National Real Estate Insurance Group. She started her insurance career in 2012 when she worked for a local State Farm agent. After four years, Jackie decided to join the NREIG team. And during her time, her vast insurance knowledge has contributed to her success here at the company. She was once a landlord for three years and based on that tenant experience, she has decided to stick to insurance. Creative insurance strategies, we know, is a very large topic and we have many clients who have a lot of different portfolios and ways to insure their locations. So, lots of things to talk about today. Let’s get started. Subject To What is a Subject To deal? Subject To is essentially when an investor purchases a property, subject to the existing mortgage. So that's how it gets its name. Let's say that you own a property and you're looking to sell it and I am an investor who's looking to purchase that property from you. But for one reason or another, I (the investor) do not want to get a loan on my own. So, I buy the property subject to your existing mortgage. And that means I start making the mortgage payments directly to your lender on your behalf. But within that transaction, the deed gets transferred over to my name and I become the owner of the property. How do you insure a Subject To Property? How to insure these properties is something that I don't think a lot of investors may think about. The most important rule that I would give to an investor who is investing in Subject To properties is do not assume that the seller's homeowners insurance is going to cover you if there is a loss to the house. The seller's homeowners insurance is for an owner-occupied property. Even if the seller is still going to be residing in the house, they no longer own the property. So, they should not keep a homeowners policy in place. It would not protect either party properly. Instead, investors should purchase an investment property policy, like we sell at NREIG. You would want to make sure that you are the named insured. That protects you at claim time because you would be named on the claim check and the seller wouldn’t be. That's important because when the loss happens, you don't want the seller to sign off on the check that is rightfully yours. Another thing that I think that you should consider is keeping the seller as an Additional Interest on the liability coverage. Because while they no longer need to be on the property insurance, they still have a liability risk on the property because they’re still named on the loan. The last piece of information that I will give you about how to properly insure a subject to property is to make sure that the lender is named on the documents. It sounds silly. It sounds like something that everyone knows how to do, but that's very important to make sure that the loan doesn't get called due. Those are three things. (1) You want to make sure there’s an investment property policy in your name. (2) You want to make sure that the seller is not named on the property coverage and (3) that the lender is properly named so that they are satisfied with your coverage documents. Non-Performing Notes What is a Non-Performing Note? I'm not going to lie, it’s something that took a long time for me to wrap my head around. I want to go through a real-life example with you. Say you own a property and for whatever reason, you're no longer able to make the mortgage payments. Let's say after three months of you not being able to make the loan payments your lender has decided that they don't want to go through the foreclosure process. Instead, they sell the note, most likely to an investor. I (the investor) can go to that lender and purchase the note from them, and I essentially would become your lender. Something that I, as an investor, could do after I take over the note is come to you, and try to rework your payments. Maybe I know that you're in hard times right now so we are working on a payment plan so that you can pay off your loan over time. Or I could extend the period of the loan so that you could make smaller payments and still pay it off. In my example, let's say that your outstanding loan was for $100,000. When I purchased the note, I purchased it from your lender for $50,000. I essentially purchased it at 50% of what the loan value was. If I can rework the terms of the loan with you and get you to pay me back in full (or plus some), I've essentially made $50,000 plus the interest that is part of our agreement. Then, I transfer the deed back to you once the loan is paid in full. The other option would be if you are unable to make the payments or we're unable to come to terms on a new payment strategy, I could foreclose on the house. That puts a lot more risk on me as the investor. But once I'm through the foreclosure process, I now have an investment property that I can sell, renovate, or rent out to another tenant. Basically, for $50,000 I have now acquired an investment property. How do you insure a Non-Performing Note? You want to ensure you have insurance as soon as you purchase the note and that it covers at least the note's amount. So, even though I... --- - Published: 2024-04-02 - Modified: 2025-03-25 - URL: https://nreig.com/nreig-vs-carrier-responsibilities/ - Categories: Insurance Education - Tags: featured NREIG is unlike any other insurance agency, and because of that, we understand why it might be difficult to figure out our role in insuring your properties. To help clear up some confusion, let’s take a closer look at the responsibilities of NREIG and our insurance carrier partners. NREIG: As an independent insurance agency, we partner with carriers to provide specialized coverage to our clients (real estate investors) with whom we also have a close working relationship. Carrier: The carrier, or insurer, is the company that underwrites the policies and assumes the financial risk associated with insuring your properties. Insurance carriers grant NREIG various authorities and responsibilities outlined below. Setting Rates & Billing NREIG Our in-house billing department ensures smooth transactions and accurate billing procedures. Responsibilities include processing and applying payments to client accounts and handling refunds when necessary. We compile and distribute monthly statements, Notices of Intent to Cancel (NOIC), Notices of Cancellation (NOC), collections notifications, and Evidence of Insurance (EOI) documents when requested by either you or your lender. Our team also assists in updating client billing information, securing escrow details, and facilitating billing requests to lenders on behalf of our clients. Should you have inquiries regarding our monthly billing process, the billing team is available via email at Billing@NREIG. com or phone at 888-741-8454 Ext. 3001 Carrier Our insurance carrier partners establish the rates for each coverage, which determines the premium based on various factors, including coverage amounts, deductibles, geographic location, and underwriting considerations. Carriers may adjust insurance rates periodically to account for changes in risk exposure, market conditions, or inflation. These rate adjustments ensure that premiums remain comparable to the level of risk and help maintain the financial stability of the insurance company. Carriers communicate any rate or deductible changes to NREIG, and our team then communicates those changes to our clients. Service & Support NREIG Our team collects property information to help tailor coverage proposals to meet the specific needs of each unique location. We answer any policy questions clients may have and explain coverage details. As requested by the client, we implement changes to coverage, including adding or removing ancillary products, adjusting coverage amounts, and switching deductible amounts. Underwriting Guidelines & Exclusions NREIG Each of our carrier partners has distinct guidelines for insuring properties. As such, our team meticulously evaluates property information gathered from proposal requests and other resources to ensure compliance and accuracy. If a property aligns with a carrier's underwriting criteria, we have the authority to bind coverage. Our industry expertise and close collaboration with carriers allow us to negotiate optimal underwriting terms, ensuring effective coverage for your investment properties. Carrier Each carrier has its own set of underwriting guidelines that a property must fit into to be covered. They may exclude coverage for certain risks, such as mold, earth movement, or acts of terrorism, some of which can be bought back by endorsement. Carriers may also choose whether they are willing to accept certain risk criteria such as distance to coast, wiring type, unit count, number of stories, etc. To manage risk exposure, it is also common for carriers to impose moratoriums, temporarily suspending the writing of new business or increase of coverage in certain high-risk areas experiencing severe weather or natural disasters. Claim Management NREIG Our Client Experience team acts as a claims intermediary, advocating on behalf of our clients to streamline processes when a loss occurs. After you report an incident, our team submits the initial claim details to the carrier. As the carrier and adjuster fulfill their responsibilities, we act as your liaison and, when necessary, we directly advocate for you with the carrier, ensuring your interests are represented and addressed effectively. NREIG does not have the authority to approve or deny claims. Carrier/Adjuster Upon receiving claim details, the carrier assigns a lead adjuster who handles inspections, reviews findings, and analyzes the policy to determine if the loss is covered. If the loss is covered, the lead adjuster will use the findings of the physical inspection to write an estimate and settlement recommendation. The carrier will then review the coverage/settlement recommendation and either approve or deny the claim. The lead adjuster will notify you of the carrier’s decision and coordinate payment if necessary. Watch the video below to learn more about our innovative approach and how a program like NREIG’s can benefit you. Note: This is not a complete list of all insurance responsibilities maintained by NREIG and its carrier partners. --- - Published: 2024-03-29 - Modified: 2025-03-25 - URL: https://nreig.com/choosing-between-basic-and-special-form-coverages/ - Categories: Coverage Options, Insurance Education - Tags: basic form, broad form, coverage options, featured, policy, special form If you’ve shopped for property insurance before, you may have noticed that some policies list Covered Losses as Basic, while others specify Broad or Special. The differences between these three property insurance coverages are significant. It is important that you consider more than just the cost of the policy option before you choose which coverage form is best for you. NREIG offers either a Basic or Special coverage form option. The broad form is not offered nearly as often, but we will cover it as well. Basic Form Coverage Basic coverage is a “Named Peril” policy, which means that for a loss to be covered, the peril must be listed by name on the declarations page. In addition, you carry the burden of proving that a loss was caused by an included peril. Basic Form is typically the cheapest of the three coverage options. Depending on the carrier, this coverage form can save you approximately 25-30 percent per year. However, a Basic Form policy does not include the following perils: Collapse Falling Objects Theft (This includes things you own, such as air conditioning units or copper pipes, not your tenants’ belongings. ) Weight of Ice, Sleet, or Snow Water Damage (Most known as coverage for frozen and burst pipes) Broad Form Coverage Broad Form is similar to Basic in that it is also a “Named Peril” policy. The coverage provided by Broad Form includes the same perils as Basic, plus all of the bullets above except Theft. We do not typically offer this type of coverage because the cost savings it provides are usually not enough to make sense to purchase. You would save around 10% compared to Special Form. In most cases, for the additional 10%, it is a better option to go ahead and purchase Special Form. Special Form Coverage Special Form coverage is the most comprehensive and in turn, the most expensive insurance coverage form you can purchase. It is considered “All-Risk” coverage, meaning that unless there are specific exclusions listed within the policy, then coverage is afforded to you in the event of a loss. The burden of proof falls on the insurance company to prove that the policy specifically excludes the peril that caused the loss. There are standard exclusions that come on every Special form policy (some of which can be purchased as an endorsement or stand-alone policy and others cannot), these are: Mold & Fungus Wear & Tear Sewer & Drain Backup Earth Movement (including earthquakes and sinkholes) Flood Intentional Tenant Damage Be sure to review your exclusions and endorsements pages to make sure no other exclusions have been slipped into your policy. Many insurers often exclude Theft. See the graphic below for a comparison of NREIG's Basic and Special Form coverage options. Consider the following when choosing your insurance coverage form: Is the property in an area where the weight of ice, sleet, or snow and water damage is high risk? If not, Basic Form might be a better option. For a flip, will the property still be in my possession when the temperatures get cold? If not, Basic form might be a better option. Is Theft coverage a concern? If the location is occupied, then that threat should be diminished. As you can imagine, theft most often occurs at vacant locations. If the location is a flip or undergoing renovation, will there be enough owned materials and appliances at the location for carrying Theft coverage to make sense? Keep in mind that your policy does not cover your general contractor’s tools and materials. There can be up to a 30% price difference between Basic, Broad, and Special policy forms. It is up to you to determine if the additional exclusions associated with the cheaper coverage forms are worth the risk. Our team is happy to provide you with a full policy/coverage comparison of what you currently carry and what we can provide. Call us at 888-741-8454 or email info@nreig. com. Note: This piece should not be construed as contractual. Applicable language specific to your policy supersedes it. Information contained in this post is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations, and conditions. --- - Published: 2024-03-06 - Modified: 2025-06-26 - URL: https://nreig.com/nreig-billing-frequently-asked-questions/ - Categories: NREIG News - Tags: featured What payment types do you accept and how can I change/update my payment information? We accept checks, credit cards, ACH payments, and wire payments. Payment method changes can be submitted through the Client Portal, our secure Billing Information link or you may call the NREIG Billing Department at 888-741-8454 Ext. 1002. Please do not send any card/bank information via email. What billing methods do you offer? Monthly Billed- Your primary payment method on file will run for the balance due plus a $7 installment fee on your autopay date each month. For accounts with effective start dates of the 1st to the 15th, autopay will run on the effective start date each month. For accounts with an effective start date of the 16th to the 31st, autopay will run on the 15th of every month. * Annually Billed- Your payment method on file (bank account or credit card) will be charged the entire 12 months’ worth of premium. Those premium funds will be held on file and on the first of each month, the monthly balance due will be withdrawn. Annually billed accounts are not charged a monthly installment fee. If coverage is cancelled with funds on file, you will be sent a refund. Escrow Billed- When the property is set up in our system, your lender will be billed a 12-month invoice. The funds obtained will be held on file and the balance due each month will be drafted. When funds are 60 days from depletion, your lender will be invoiced again. If coverage is cancelled with funds on file, you will be sent a refund. Prorating: What is it and does NREIG do it? In the context of property insurance, prorating involves calculating a partial premium amount based on the duration for which coverage was needed within a month. At National Real Estate Insurance Group, we do not prorate. Regardless of the number of days in a given month you have coverage for your property, the full premium amount for that month is due. I didn’t make any coverage changes, so why have my rates increased? NREIG’s Program operates on a monthly reporting schedule. So, even though we offer annual billing options, all coverages are month-to-month. This program design is what empowers you to make changes to your coverage at any time. You are not locked into annual contracts or costs. When you sign the Program Participation Agreement, you acknowledge the possibility of changes to your coverage at any time due to carrier requirements or other reasons. Factors like the hardening property market, inflation, labor shortages, and increased building costs have recently led many carriers to require increases across the board. To read more about the current state of the market and how it is impacting investors, click here. For accounts that are annually billed, the difference in cost for the remainder of the property term would be drafted from the payment method on file on the next autopay date. If you have additional questions, please reach out to our Billing Department at 888-741-8454 Ext. 1002 or Billing@NREIG. com. *If your account number begins with “SHIELD”, certain processes outlined above may vary. --- - Published: 2024-01-09 - Modified: 2024-12-10 - URL: https://nreig.com/year-in-review-2023s-insurance-losses-market-shifts/ - Categories: Insurance Education As we say goodbye to 2023, property owners across the country are grappling with the aftermath of another intense year in the insurance market. From extreme weather events to large-scale natural disasters, the insurance landscape has evolved significantly. Before diving into 2024, it's important to consider how the market has reacted to impactful weather events and what investors can learn from it all. Extreme Weather Events of 2023 Winter Between February 25th – 28th, Winter Storm Piper wreaked havoc from California to Maine, causing approximately $1. 8 billion in total damage. The storm brought heavy snowfall, accumulating over 12 inches in some areas, paired with freezing rain. These extreme conditions led to frozen pipe incidents at properties across the country. A staggering 466 tornadoes were reported from January to March. According to AccuWeather, this tops the previous high recorded in the first three calendar months since 2017 (398). The Southeast was most affected by tornadoes, specifically Mississippi, Louisiana, Arkansas, and Alabama. Spring From April to June 2023, severe and unstable weather plagued southern and central areas of the country. Weather events included tornadoes, hailstorms, heavy rain, and high winds, causing approximately $25 billion in damages. In June, smoke from Canadian wildfires caused hazardous air quality in the Northeast, eventually spreading to impact areas in the South and West as well. Summer Igniting on August 8th, wildfires predominately on the island of Maui, Hawaii caused an estimated $5. 5 billion in damages. While a definitive cause remains undetermined, the wildfire was fueled by a combination of high winds, dry brush, and potentially downed power lines. The catastrophic event tragically claimed the lives of over 100 individuals and left more than 2,000 buildings damaged. On August 16th, Tropical Storm Hilary reached Category 4 intensity, triggering flooding and landslides in California and parts of the Southwest U. S. Resulting damage amounted to nearly $700 million. On August 26th, another Category 4 storm, Hurricane Idalia, made landfall in the Southeast U. S. The area experienced severe flooding as a result and losses totaling $2. 5 billion. Fall In late September, Tropical Storm Ophelia made landfall in North Carolina, bringing widespread rainfall, heavy winds, and significant flooding. Regions of New York also experienced significant rainfall and flooding in late September with some areas recording over eight inches of rain. Winter November and December brought a comparatively mild winter, with many parts of the country experiencing warmer weather than is typical. While rain and snow were common in many areas, the weather remained relatively non-severe. Insurance Market Response In 2023, real estate investors faced significant price hikes with general rate increases and Insurance to Value (ITV) minimum increases. Rising building and material costs continued to be a major concern for insurance companies, driven in part by large-scale natural disasters like wildfires, which impact material availability and the supply chain. Thus, why industry-wide increases have been common in the last few years. NREIG was able to remain steady in those years, but inflation and across the board carrier requirements necessitated rate and ITV minimum increases in 2023. As we saw beginning in 2022, many insurance companies continued to pull out of areas such as Florida, Louisiana, and California. Unfortunately, some were forced to shut down operations altogether, not only because it was no longer profitable but because there was real concern that one large weather event could cause irreparable financial harm to all parties involved. Some insurance companies approached challenges by identifying risks they are no longer willing to insure. For example, many carriers now limit or exclude coverage for risks that are more frequent and predictable, such as Aluminum or Knob & Tube Wiring- two electrical systems that pose serious fire hazards. In addition to more exclusionary language, these methods also resulted in higher deductibles. The good news is the market is beginning to stabilize. The changes and cost increases we saw in 2023 were insurance carriers establishing acceptable rates, deductibles, and coverages that will allow for viable business moving forward. Although costs are expected to continue rising, the rate at which they do is predicted to slow in the coming year. Keep in mind though, significant weather events will always be a driving force that shapes the landscape of the insurance market. Takeaways For Real Estate Investors Consult Your Insurance Provider Engaging in open discussions with your agent or broker is the best way to identify exposure, address concerns, and explore additional insurance products. Your Client Service Advisor is a great resource. Don’t hesitate to reach out if you have questions or need advice! Choose Appropriate Coverage As an investor, you must realize that protecting your property and your financial well-being are one and the same. Choosing the appropriate insurance agent/agency, policy coverage, ancillary products, and even coverage amounts can help save you money in the event of a loss. Evaluate Coverage Amounts Your monthly or annual expense isn’t always an indication of how “good” the coverage is. For example, some high-end properties aren’t required to be insured at market value. They could be insured effectively at the rebuild value, an amount that is significantly less. Considering the following at each property you own can also help guide coverage decisions: How much could you afford to pay out of pocket if there were a loss? Are there other structures on the property and are they insured? After a large loss, would you make repairs to the home or clear the lot and sell the land? Is the property in an area prone to certain types of losses? Prioritize Maintenance Regular property inspections and maintenance are crucial in identifying risks or potential losses. Learn what to look for and how to address potential hazards with our checklists and other property maintenance resources. Avoid Preventable Losses While we saw many weather-related losses in 2023, a significant number were common and preventable perils. Taking proactive measures to protect your investment properties can significantly reduce the likelihood that you will experience a severe loss and, in turn, help keep... --- - Published: 2024-01-05 - Modified: 2025-02-18 - URL: https://nreig.com/what-is-an-insurance-program/ - Categories: Insurance Education - Tags: landlord insurance At National Real Estate Insurance Group, we understand there is no such thing as a one-size-fits-all policy for investors. So, in 2012, we developed our Program to address the ever-changing needs of a once-underserved market. Today, our unconventional business model helps deliver custom insurance products to real estate investors across the country. Watch the video below to learn more about our innovative approach and how a program like NREIG's can benefit you. Transcript: At National Real Estate Insurance Group, we understand there is no such thing as a one-size-fits-all policy for investors. So, in 2008, we developed a Program to address the ever-changing needs of a once underserved market. We now manage the nation’s largest insurance program for residential investment properties. But what is program insurance? And how does working with a program like NREIG’s benefit you? Let’s start with the four groups typically involved in program business: There are insurance carriers, which is the company that takes on the risk A program business or manager that serves as an intermediary and manages the health of the program An agency, like NREIG, that works directly with the clients And the insured, in our case, real estate investors like yourself! Specialist agencies like NREIG are granted various authorities and responsibilities by carrier partners that underwrite the risks through the program manager. Some of which include: Marketing and selling policies Assuming underwriting responsibilities within specific guidelines identified by each carrier partner  Accepting and binding coverage within those guidelines And serving as a claims intermediary, advocating on behalf of our clients to streamline the process when a loss occurs  The innovative nature of program business is one of the biggest benefits to clients! Because they often specialize in a very specific niche, program managers have a strong understanding of market issues. This expertise allows for quick responses to emerging risks and trends and the constant development of new products and services. Whether you have one property or hundreds, partner with the industry experts at NREIG. Want to learn more about real estate investment insurance? Subscribe to our YouTube channel to get notified when we post new videos! --- - Published: 2023-10-30 - Modified: 2023-10-30 - URL: https://nreig.com/condition-of-rental-property-checklist/ - Categories: Checklists, Investing Tips Keeping a profitable and well-maintained rental property begins with a thorough understanding of its condition, both at move-in and move-out. To make this process easier and more systematic, we've created the Condition of Rental Property Checklist. This comprehensive checklist is a vital tool for documenting the state of your property, helping you avoid security deposit disputes, and ensuring a hassle-free rental experience for both you and your tenants. Download the Condition of Rental Property Checklist. --- - Published: 2023-10-30 - Modified: 2023-10-30 - URL: https://nreig.com/rental-property-hazard-recognition-checklist/ - Categories: Checklists, Investing Tips - Tags: checklist As a landlord and property owner, ensuring the safety and well-being of your tenants is paramount. We’ve created the Rental Property Hazard Recognition Checklist to help you assess and address potential hazards at your rental property. Download the Rental Property Hazard Recognition Checklist. --- - Published: 2023-10-23 - Modified: 2024-01-17 - URL: https://nreig.com/cleaning-and-decluttering-checklist/ - Categories: Checklists, Investing Tips Who doesn’t love a clean and well-kept home? For investors, it’s not just about aesthetics; general cleanliness can impact property value, tenant satisfaction, maintenance costs, and more. Our Cleaning and Decluttering Checklist is the perfect resource to help your tenants keep your property in tip-top shape! Download the Cleaning and Decluttering Checklist. --- - Published: 2023-10-22 - Modified: 2024-09-16 - URL: https://nreig.com/nreigs-smoke-detector-recommendations/ - Categories: Checklists, Fall, Fire, Investing Tips, Seasonal Tips, Spring, Summer, Winter - Tags: fire, smoke alarms, smoke detectors Fires are one of the most sudden, destructive, and deadly losses we see on claims. Regular inspections, fire suppression tools, and emergency planning are all crucial components of fire safety. The ability to identify a fire quickly is the key to limiting damage and injuries to those inside or nearby. Most, if not all, jurisdictions require the property owner to provide working smoke detectors in their rental homes. It’s essential that you provide unexpired, working smoke alarms and test them regularly. Typically, there is a date printed on the back of smoke alarms, along with a serial number. That date indicates the date of manufacture. The average life expectancy of a smoke alarm is ten years, while a carbon monoxide alarm is about five years. Any alarms over those ages should be replaced immediately. The National Fire Protection Association recommends testing smoke detectors once a month. As this is not always plausible for investors, we recommend testing smoke detectors and changing batteries at least twice a year. Insurance carriers may diminish or exclude coverage if smoke detectors are not functional or are expired: If after a fire loss, it was discovered that the property did not have a working smoke alarm or the smoke alarm was expired, policy details may allow your insurance carrier to deny coverage for the damages. It is very common for commercial property insurance carriers to require working and unexpired smoke detectors. Whether a building is occupied, vacant, or under renovation, it is important to have working smoke detectors. Smoke detectors are extremely useful, even in vacant or renovation properties. In many cases, the sound of a smoke alarm has alerted neighbors or those passing by, signaling the need for assistance from the local fire department. Additionally, those working inside of the property are given the best opportunity to evacuate safely after hearing the alarm of a smoke detector. Installing smoke detectors in areas such as the kitchen or primary hallway on each floor is a good guideline to follow. Review local community, city, county, or state guidelines for more clarity on suggested locations. Because you are not at your properties every day, setting expectations with your tenants and in your lease is important. To help you stay on top of smoke alarm maintenance, we’ve created a Smoke Detector Maintenance Log. We recommend that a smoke detector log is maintained by you, your property manager, or your tenants at every location. This resource is a must-have for property safety. Download the Smoke Detector Maintenance Log. --- - Published: 2023-10-05 - Modified: 2024-01-17 - URL: https://nreig.com/wildfire-avoidance-checklist/ - Categories: Checklists, Fire - Tags: wildfire avoidance, wildfire preparation This Wildfire Avoidance Checklist is designed to help you develop a maintenance plan that will give your property a better chance of surviving a wildfire. Research shows that embers (burning pieces of airborne wood or vegetation that can travel more than a mile) and small flames are the main way the majority of homes ignite in wildfires. Follow these tips to minimize your risk, starting with the structure itself and moving out to the three zones in the Home Ignition Zone. The House and Immediate Zone The Immediate Zone includes both the home and up to 5 feet from the furthest attached exterior point of the home. Ignition resistant building materials, construction techniques, vegetation and debris removal play a vital role before and during wildfires. The Home and Its Building Materials Carports: Remove flammable items stored in carports. Crawl Spaces: Remove combustible materials and install 1/8” mesh screen on vents. Decks & Elevated Porches: Place 1/8” metal mesh screening between low-profile decks from surface to ground, to block embers from collecting underneath. Never store flammable materials underneath elevated decks/porches. Remove dead vegetation and debris from under decks/porches, and between deck board joints. Fencing: Use non-flammable fencing material (metal or masonry) when attaching directly to the siding. Wooden fences can carry flames directly to the house. Ensure there’s a minimum of at least 5’ of noncombustible material where fencing attaches to the siding. Do not add vines or other types of vegetation to fencing material. Fireplace Chimneys: Remove debris that may accumulate at roof-to-wall intersections. Embers from a fireplace can exit the chimney and could ignite a wildfire; to prevent this, install a spark arrestor. When wildfires are approaching close the damper, fireplace screens and glass door. Foundation: All foundation vents should have 1/8” corrosion-resistant metal screening. Garages: Weather seal the perimeter of garage doors to help keep embers out. Be sure the door is tight fitting, so embers can’t slide under the door or in from the sides. If possible, choose a metal or wood core door with metal exterior. Gutters: Metal roof gutters do not ignite, only the debris material that accumulates in them – that’s why keeping them clean is so important. Vinyl roof gutters can ignite when the debris material is ignited, and flaming gutters can fall from the roof edge and land next to the house, which is why the immediate zone needs to be clear of flammable materials. Roof Maintenance: Keep roofs clean from leaf litter and pine needles. Remove all tree limbs within 10 feet of the chimney, or that overhang the roof. Roofing Materials: Types of Class A fire-rated roofing products offer the best protection. Examples include: Composite shingles, metal, cement tile and clay. Inspect shingles/tiles and replace/repair those that are loose or missing to prevent ember penetration. If gaps exist between the roof covering and the roof deck at the eave or ridge, fill the space with a “bird stop” material to prevent birds from nesting there. Siding: Use ignition-resistant building materials on exterior walls: stucco, masonry products, plaster and cement. Seal gaps and crevices. Examine the siding for locations where embers could accumulate or lodge and apply caulking at trim-to siding locations where it is missing or has failed. Skylights: Remove debris next to and on skylights. Glass is a better option than plastic or fiberglass. Sliding Glass Doors: Choose double-pane tempered glass. Consider fireproof shutters to protect large windows and glass doors from radiant heat. Vents: Consider purchasing closure devices for foundation and gable end vents and installing a louver-type dryer vent that stays closed unless the dryer is running. Clean debris from attic vents and install 1/8” metal mesh screening. For turbine vents, access the attic and inspect where the vent attaches to the roof. Attach 1/8” screening to the roof sheathing. Dormer-face vents should be replaced with low-profile vents. Ridge vents should be rated for high wind/rain exposure. Windows: Multi-paned tempered glass can help reduce the risk of fracture or collapsing in a wildfire. Landscaping/Hardscaping Dead vegetation, dried leaves, pine needles and ground debris accumulation should be frequently removed. Hardscaping components should be installed around the perimeter of the home, keeping them free of ground litter/debris. Concrete, stone or gravel walkways are great additions to the Immediate Zone. Remove trees and shrubs from this area; or replace with succulents. Trim tree limbs that overhang from the intermediate zone into this area. Replace wood mulch products with non-combustible mulch products such as crushed stone/gravel options. The Intermediate Zone The Intermediate Zone is from five to 30 feet from the furthest exterior point of the home. Focus on landscaping and hardscaping in this area to create breaks which can influence fire behavior. Landscaping/Hardscaping Clear vegetation from under large stationary propane tanks. Create fuel breaks with driveways, walkways/paths, patios and decks. Keep lawns and native grasses mowed to a height of four inches. Remove ladder fuels (vegetation under trees) so a surface fire cannot reach the crowns. Prune trees six to ten feet from the ground; for shorter trees do not exceed 1/3 of the overall tree height. Space trees to have a minimum of 18 feet between crowns, lengthening the distance as the slope increases. Tree placement should be planned to ensure the mature canopy is no closer than 10 feet to the edge of the structure. Trees and shrubs in this zone should be limited to small clusters of a few each to break up the continuity of the vegetation across the landscape. Water plants, trees and lawns to keep them from becoming dry. The Extended Zone This zone extends out from 30 to 100 feet from the home structure. Keep in mind your property line may end prior to 100 feet. In these instances, work with your neighbor to develop your plans, with the goal of interrupting the fire’s path, and keeping flames smaller and on the ground. Landscaping Dispose of heavy accumulations of ground litter/debris. Remove dead plant and tree material. Remove small conifers growing between mature... --- - Published: 2023-10-04 - Modified: 2025-10-24 - URL: https://nreig.com/how-to-insure-your-renovation-property/ - Categories: Coverage Options, Insurance Education - Tags: house flipping insurance, Renovation Insurance Whether you’re new to property flipping or a seasoned veteran, renovating a home comes with a unique set of risks, so it’s important that you have the right insurance coverage. At National Real Estate Insurance Group, we believe having the proper coverage for your investment is paramount. Keep reading to learn about the key components of insuring a renovation property. Dwelling Coverage Dwelling coverage protects against sudden and accidental physical damage to your property. For instance, if severe weather were to cause a tree to fall on your roof, resulting in structural damage, you may be covered for the cost of repairs or replacement. National Real Estate Insurance Group offers two coverage form options for you to choose from: Basic and Special. For locations undergoing renovations, we highly recommend Special Form coverage, as it extends to Theft and Water Damage- two perils that are more likely to occur at properties undergoing renovation. Read about the differences between Basic and Special Form coverage here. Premises Liability It’s not just the physical structure that requires protection. As you may know, when you own a property, you have liability risks. A Premises Liability policy offers you protection against liability claims that can arise from incidents on your property. Essentially, this coverage protects you from everyday risks, like a guest slipping on an icy walkway. Click here to learn more about Premises Liability. --- - Published: 2023-09-22 - Modified: 2024-09-16 - URL: https://nreig.com/gearing-up-for-fire-prevention/ - Categories: Fire, Tenant Relations - Tags: cooking, fire, heating equipment, smoke alarms Are you and your tenants prepared to deal with a house fire? What may seem like common sense to you might not be to others. Besides, it's hard to know how people will react when panicked by fire. So, preventing them is your best option. As October is Fire Prevention Month, we wanted to share preventative measures real estate investors and tenants can take to fend off one of the most destructive and deadly losses we see - fires. Be aware The first step in fire prevention is understanding what could happen, so let’s start with some statistics. The Consumer Product Safety Commission (CPSC) estimates that there may be as many as 7. 4 million house fires each year, and the majority are able to be put out without having to call the fire department. According to the National Fire Protection Association (NFPA), on average, fire departments respond to around 340,000 home structure fires each year. Other statistics: One out of every 326 households report a fire each year. Seven people die in home fires every day. Each year, house fires result in an average of 2,510 civilian deaths, 12,300 injuries, and $6. 7 billion in direct damage. Look for places where fires can start As you perform your regularly scheduled maintenance and property inspections, keep an eye out for safety issues and address as needed. Areas where a fire is likely to start: Kitchen or cooking area - 43% Bedroom - 7% Confined chimney or flue - 5% Living room, family room, or den - 4% Leading causes of fires in homes: Cooking Equipment - 47% Heating Equipment - 15% Electrical - 9% Intentional - 8% Smoking Materials - 5% Leading Cause #1: Cooking Equipment According to the National Fire Protection Association, in 2020, ranges or cooktops were involved in 62% of home fires caused by cooking equipment, and unattended equipment was the leading cause of cooking fires and casualties. Providing an operable and safe stove and oven is a basic amenity for most rentals. You might be wondering what more you can do to mitigate cooking fires. You can't monitor the kitchen 100% of the time, and a cooking test is probably not part of your tenant screening process. However, you can educate tenants on the dangers of cooking fires and the importance of staying in the kitchen while cooking. You could also invest in a product like StoveTop FireStop (STFS). This product is designed to put out unattended cooktop fires. It’s like installing a fire suppression system, only much less expensive and more targeted. Leading Cause #2: Home Heating Equipment This equipment includes central heating systems, portable and stationary space heaters, fireplaces, chimneys, heat transfer systems, and water heaters. Regular inspection and servicing of the furnace and water heaters help minimize the risk of malfunction and fires. Educating your tenants on the use of space heaters is also critical. Share the following tips: Space heaters should not be the primary heating source in the house. Any space heater in use should be equipped with safety features such as automatic shut-off if knocked over. Keep a 3-foot safety zone around the heater cleared of any flammables (blankets, toys, pet toys, and any other clutter that might catch fire). DO NOT extend the range of the heater by using an extension cord. The extension cord may overheat, becoming a fire hazard. Space heaters should not be left unattended or run overnight. You might also let your tenants know that running a 1,500-watt electric heater 24 hours a day for a month may cost them over $120 on their electric bill! Lastly, make sure chimneys and fireplaces are inspected and cleaned by a professional annually. The inspection will reveal the health of the chimney and allow any fixes to be made before a chimney fire can occur. Bonus Tip: Cleaning out dryer vents is a relatively easy task and can save you from a costly fire at your property. Make sure to instruct tenants to clean out the lint trap regularly too! Leading Cause #3: Electrical Your electrical system includes fixed wiring, meters or meter boxes, switches, receptacles or outlets, transformers, breakers, cords, plugs, lighting equipment, etc. When you first buy a property, making sure all components of your electrical system are up to code and in good condition is critical. Many insurers won’t cover some types of older wiring (e. g. , aluminum or knob and tube), so not only is it unsafe, but if you suffer a loss, you most likely won’t be compensated for that loss either. During your initial walk-through with tenants, make sure they understand these fire hazards: Using too many extension cords and/or multiple multi-outlet strips can cause an overload. Covering electrical cords with carpet or other materials can cause them to overheat. Using appliances with cords (including extension cords) that are worn or frayed can cause the current to dangerously arc. Placing light bulbs too close to flammable items can cause heat to transfer. Leading Cause #4: Intentionally Set Fires Intentionally set fires start with deliberate misuse of a heat source. We have heard of occurrences where a tenant set fire to the house because they found out they were evicted. We have also seen instances where squatters trying to stay warm in a vacant home started a fire, causing the house to go up in flames. Unfortunately, firefighters and other innocents have been injured or killed in some of these incidents, leading to arson and secondary homicide charges. During your regularly scheduled inspections, limiting the flammable items may help decrease the possibility of someone starting a fire at your investment property. Picking up litter, getting rid of firewood, and removing old propane tanks, gas cans, and paint stored around the house can dramatically reduce your risk of fire. Leading Cause #5: Smoking Materials You may have a provision in your lease that prohibits your tenant from smoking inside or on the premises. Your reasoning may be to avoid smoke damage or to... --- - Published: 2023-09-18 - Modified: 2025-03-07 - URL: https://nreig.com/what-every-real-estate-investor-should-know-about-insurance-claims/ - Categories: Insurance Education Originally published in REI Ink Magazine. Experiencing a loss at one of your properties can be overwhelming, and dealing with insurance claims can be a complex process. By familiarizing yourself with the ins and outs of insurance claims before a loss occurs, you can proactively protect your business while minimizing potential setbacks. This general outline of do’s and don’ts can save you time, money, and potential headaches. Do Thoroughly review your insurance policy - Before an incident occurs, take time to carefully review your insurance policy. While it may not be the most exciting read, this is your guide to what is covered and what is excluded. If you’re unsure about something, ask your insurance agent, and get everything in writing. Promptly report ALL claims - Delays in reporting incidents could lead to prolonged processing or even a denial of your claim. As soon as a claim-worthy incident occurs, contact your insurance provider to initiate the claims process. Document incidents - Take photos, videos and write detailed descriptions of what happened. Doing so will substantiate your claim and help the insurance carrier understand the extent of the damage. Don’t Withhold relevant information - Failure to disclose relevant information about an incident can lead to claim denial. Provide accurate and complete details. Exaggerate or provide false information - Fabricating or exaggerating details about an incident can lead to serious consequences. Insurance carriers investigate every claim and giving false information could result in denial or even legal action. Make unnecessary claims - Minor incidents that you can afford to pay for out of pocket may not warrant a claim. Making frequent or unnecessary claims can lead to higher premiums. Neglect necessary maintenance - After an incident has occurred, it is still important to maintain the property. Failure to do so could worsen the damage and may impact the outcome of your claim. The Balancing Act of Filing Claims Simply turning in claims should not directly affect your rates if they are not paid out. However, a pattern of filing unnecessary claims can affect your relationship with your insurance carrier. A string of loss frequency, even with no payout, makes carriers begin to wonder when the big loss (that they will have to pay) is going to hit. Maintaining a balanced claims history will help foster a positive and long-term relationship with your carrier. If one of your properties incurs damage that is not the result of a covered peril or not going to cost more than your deductible to repair, you’re better off paying for repairs out of pocket. What will affect your rates are frequent controllable loss claims. Controllable losses are incidents that could have been avoided or mitigated through proper precautions. In this respect, frequency is just as bad as severity. Insurance companies believe that if an investor manages their properties and businesses the right way, controllable losses are typically avoidable. Do your due diligence to prevent controllable property losses, such as: Cooking and heating fires Water damage from burst pipes Theft Tenant damage Tree damage With that said, always inform your carrier of liability incidents, even if you’re unsure that a claim will be filed. If a claim does get filed, your carrier is in a better position to help defend you because you made them aware of the incident when it occurred. Never try to negotiate a settlement for a liability incident on your own. Never Give an Insurance Company a Reason to Deny a Claim Ensuring that the information on your policy is accurate and up to date is extremely important. The last thing you want is to suffer a loss, file a claim, and be informed that coverage will not be afforded to you because of a clerical error. Below are a few key considerations that have a huge impact on the outcome of your insurance claims. Named Insured It is common for investors to utilize different business names, but if you’re not careful, this practice can leave you without coverage after a loss. Consider this: My insurance policy for an apartment complex is registered under my legal name, Shawn Woedl. My tenants pay rent to the business entity with which I bought the property, SW, LLC. If one of my tenants slips on the stairs and breaks their leg, they’re going to sue SW, LLC because that’s where they pay their rent. The issue is, if my LLC is not listed as “named insured” on my insurance policy, and a claim is filed, coverage may not be available. This is also a common issue when investors change their entity name but forget to update it on their insurance policy. The first named insured on the insurance policy must always be the entity that owns the property, whether that’s you or your business. Occupancy Status Reporting changes in occupancy status is the best way to ensure you always have the proper coverage. If your property is listed as “occupied” but is actually vacant, and a loss occurs, your insurance carrier may deny any claims. Insurable Interest Insurable interest is a legal concept stating you must have financial or other interest in the damaged property to be eligible for reimbursement. This basically means an entity that does not have interest in a property cannot insure said property. Let’s say you’ve inherited your aunt’s cabin in the Smoky Mountains. As soon as the deed is signed, your aunt’s homeowners policy no longer applies because she has no insurable interest. It is your responsibility to obtain insurance for the inherited cabin to be covered. Avoiding Claim Delays To avoid any discrepancies that may hinder the claims process, double-check that the following is listed correctly on your policy: Property address Mailing address Listed mortgagee The bank account for the “pay to” entity Occupancy status Additionally, having a comprehensive understanding of the differences between Basic, Broad, and Special Form coverage is essential, as is being aware of your coverage limits for things such as detached structures or loss of rents. This... --- - Published: 2023-08-28 - Modified: 2023-08-28 - URL: https://nreig.com/hurricane-preparation-checklist-for-tenants/ - Categories: Checklists, Fall, Hurricanes & Storm Surges, Seasonal Tips, Weather Events - Tags: hurricane, hurricane checklist, hurricane prep, hurricanes, storm surge The best time to prepare is before hurricane season begins. As a renter, taking certain precautions can ensure the safety of everyone staying at the property and your belongings. Use the following from our Tenant Hurricane Preparation Checklist when preparing for and experiencing severe weather. Before the Storm Prepare a to-go bag that is easily accessible. Include at least 72 hours' worth of the following for your entire household. Medication, water, nonperishable foods, and pet supplies. Create an emergency plan with everyone living in the home - meeting spots, alternate routes, pet responsibilities, etc. Fill the car's gasoline tank in case evacuation becomes necessary. Ensure cell phones are fully charged. Bring inside any furniture, yard ornaments, or play equipment that could act as a dangerous projectile. Consider purchasing a renters insurance policy. Your personal property is not covered by any insurance the owner carries on the property. During the Storm If local authorities advise a "shelter in place," get inside as quickly as possible. Close and lock all windows and doors. Shut all storm shutters. In case of high winds, go to a small, windowless room on the lowest level. If flood waters rise to dangerous levels, go to the highest level of the building and call 911. Do not climb into a closed attic, as you may become trapped. Continue to listen for updated emergency information and instructions. If advised to evacuate, do so immediately. Do not drive around barricades. Stay off bridges over fast-moving water. If in a mobile or manufactured home, get out and go to the nearest shelter. Do not walk, swim, or drive through flood waters. If you have evacuated the area, stay put. Do not go back to the affected area until local authorities advise it is safe to return. Stay informed by listening to or watching local broadcasts or using the FEMA Mobile App. Download the Tenant Hurricane Preparation Checklist. --- - Published: 2023-08-28 - Modified: 2023-09-05 - URL: https://nreig.com/hurricane-preparation-checklist-for-investors/ - Categories: Checklists, Fall, Hurricanes & Storm Surges, Seasonal Tips, Weather Events - Tags: hurricane, hurricane checklist, hurricane prep Natural disasters don't wait on humans to be ready to respond. This Investor Hurricane Preparation Checklist is designed to help you develop a maintenance plan that will give your property a better chance of surviving a hurricane. Heeding the tips below could save you thousands of dollars or may even save a life. Preparing the Property Keep trees and shrubs well-trimmed so they are more wind resistant. Secure loose gutters and downspouts and clear any clogged areas or debris to prevent water damage. Retrofit to secure and reinforce the roof, windows, and doors. Brace garage doors. Bring inside any furniture, yard ornaments, or play equipment that could act as a dangerous projectile. Coverage all windows with permanent storm shutters or 5/8" marine plywood. Tape does not prevent windows from breaking. Move valuable items away from windows, and to the upper floors if possible. Check that the battery backup for the sump pump is working to prevent drain backups. Purchase a portable generator for use during power outages. Remember: keep generators and other alternate power/heat sources outside, at least 20 feet away from windows and doors, and protected from moisture. NEVER try to power the house wiring by plugging a generator into a wall outlet. Consider building a FEMA safe room or ICC 500 storm shelter designed for protection from high winds and in locations above flooding levels. Download the Investor Hurricane Preparation Checklist. --- - Published: 2023-08-21 - Modified: 2023-08-22 - URL: https://nreig.com/mitigation-tips-for-the-most-common-property-losses/ - Categories: Fire, Insurance Education, Tenant Relations, Water - Tags: cooking fire, fire, fire prevention, tenant damage, theft, trees, vacant property, water, wear and tear At NREIG, we see numerous property claim submissions each day. And while some losses like hail damage are unavoidable, many are preventable. Taking proactive measures to protect your investment properties can significantly reduce the likelihood that you will experience a severe loss. Let's explore the most common preventable property losses and what you can do to avoid them. Fire Fire losses are not only one of the most common losses we see, they are also the most damaging. The United States Fire Administration (USFA) and the Insurance Information Institute (III) report that the average house fire causes approximately $40,000 in damage. The claims we've seen at NREIG support this average. It is also important to note that often, fires result in total loss. The average replacement cost for an investment property is typically around $80,000, but properties in certain parts of the country could range from $150,000 to one million. It is rare that fires can be contained to the area of origin. In addition to the materials fires typically burn, the resulting smoke and soot can damage your property and/or its contents. Smoke often leaves odors that are difficult to remediate without complete replacement of the damaged item(s). Preventable Fires Cooking fires: Statistics from the National Fire Protection Association agree that cooking is the leading cause of home fires. Most often, cooking fires start from unattended cooking or from a grease fire that quickly gets out of control. Heating fires: Heating fires can result from someone using a space heater improperly or a person taking shelter in a vacant property and starting a fire to keep warm. Consider including this Portable Heater Fire Safety flyer from the USFA in your tenant welcome packets. How to Stay Fire-Free Occupied Properties Test Smoke Alarms Monthly to be sure they are working. Keep fire extinguishers in the home and make sure your tenants know how to properly use them. Install fire suppression products like StoveTop FireStop to help extinguish cooking fires and prevent a larger fire from occurring. Vacant Properties Layer your security to ensure uninvited guests can't enter the home. Make the property look as lived in as possible until it is sold or occupied; abandoned homes invite mischief and theft. Recruit the neighbors to be on the lookout for any unfamiliar faces in the neighborhood and call the police if necessary. Read: Taming the Flame: 5 Ways to Avoid a Fire Loss Water Water losses, most often caused by burst pipes during winter freezes, are also one of the most common preventable losses we see. If the leak is discovered quickly, damage can be minimized, but if the water runs for several days before discovery, these losses can be just as severe and costly as a fire loss. Data we've collected over five years shows that the average water loss for an investment property ranges from $6,000 to $16,000 in damages. The clean-up is messy, and it can take a significant amount of time to restore a property back to an inhabitable or sellable condition. Preventable Water Losses Without question, the most common type of water loss we see are those resulting from a burst pipe. These losses tend to occur during extreme cold snaps, but especially when an owner, property manager, or tenant fails to take preventive measures to protect this type of loss from occurring. Many losses we see at vacant properties occur when the heat is set too low, turned off, or is disrupted when the electricity goes out during a storm. Water losses are also common when the occupant has left the residence for an extended period of time and an extreme weather event happens while they are away. In recent years, Arctic vertices have pushed freezing temps further south, damaging properties simply not equipped to handle that type of cold. How to Prevent a Burst Pipe Occupied Properties Insulate pipes on exterior walls, crawl spaces, and the attic. Open cabinet doors to allow heat to circulate to uninsulated pipes under sinks and appliances. Let warm water drip overnight, especially for faucets on outside walls. Vacant Properties Set the thermostat no lower than 55 degrees Fahrenheit – it may need to be higher for properties in more northern locations or when colder temperatures hit. If you do not live near the property, ask your property manager, a friend, or a neighbor to check the house daily during cold snaps to make sure it's still warm. Shut off the water at the street and drain the plumbing system (i. e. , winterize it). Read Protect Your Vacant Property from Water Damage This Winter to learn more. Theft Properties under renovation or properties on the market for sale tend to be a thief's favorite target. Both have relatively low traffic and contain valuables like new appliances, HVAC systems, construction materials, and tools. Did you know that the average theft loss for an investment property is four times the national average per break-in? Statistically, the average break-in at an investment property totals around $8,000 while the average break-in on an owner-occupied property generally totals around $2,000. How to Prevent a Theft at Your Investment Because some of the areas popular for investing can experience higher crime rates (Detroit, for example), it may feel as though theft or vandalism is just part of your life as an investor. However, that is simply not true! There are steps you can take to make your property less appealing to thieves and vandals: Make the house look lived in – you don't want to be the easiest target on the block. Keep the yard clean and grass trimmed. Maintain trees and shrubs that may block views of the house and provide thieves with places to hide. A well-lit exterior may discourage thieves from approaching your house at night – just be sure they are placed high enough where it's not easy to disable them. Make sure the property is properly secured – lock doors and windows and reinforce them with sturdy hardware. Consider... --- - Published: 2023-08-16 - Modified: 2025-06-17 - URL: https://nreig.com/hurricane-recovery-tips-resources/ - Categories: Fall, Hurricanes & Storm Surges, Seasonal Tips, Summer, Water, Weather Events - Tags: claim, FEMA, hurricane, mold, named storm You may have spent considerable time and effort preparing for a strong storm coming your way, but what should you do after the hurricane has passed? What follows are some hurricane recovery tips and resources that we hope you will find useful. We are always here to support you! Hurricane Recovery Tips & Resources Your first priority: Keep yourself, property managers, and tenants safe by following the instructions given by local authorities regarding re-entry and any other emergency procedures. Visit your affected property/properties as soon as safely possible: Take photographs of the damages. Please note that it is your obligation per the insurance policy to mitigate any further damage by taking all reasonable precautions to ensure the security of your property. Mitigation expenses you incur for a covered loss may be considered part of your claim. Such steps include water extraction, roof tarping, and securing the property. In any type of loss, you will usually be required to: Contact your insurance company in a timely manner to advise them of the loss. Contact the authorities when appropriate. File a police report if a crime has been committed. In the event of a fire, file a fire report. Take photos and/or videos of the damage. Make any necessary temporary repairs to prevent further damage to the property. Set aside any damaged materials for the adjuster to examine. Save all receipts from any temporary repairs made. These are usually considered a part of your claim. Get an estimate from a reliable contractor. (Obtaining several is advisable. ) Clean-Up Tips from FEMA Always wear protective clothing including long-sleeved shirts, long pants, rubber or plastic gloves, and waterproof boots or shoes. Before entering your home, look outside for damaged power lines, gas lines, and other exterior damage. Beware of snakes, insects, and other animals that may be on your property or in your home. Take photos of your damage before you begin cleaning up and save repair receipts. Your home may be contaminated with mold, which raises the health risk for those with asthma, allergies, and breathing conditions. Refer to the Center for Disease Control for more info on mold remediation. Open doors and windows so your house can air out before spending any length of time inside. Turn off main electrical power and water systems and don’t use gas appliances until a professional can ensure they are safe. Check all ceilings and floors for signs of sagging or other potentially dangerous structural damage. Throw out all foods, beverages, and medicines exposed to flood waters or mud including canned goods and containers with food or liquid. Also, throw out any items that absorb water and cannot be cleaned or disinfected (mattresses, carpeting, stuffed animals, etc. ). Remove all drywall and insulation that has been in contact with flood waters. Clean all hard surfaces (flooring, countertops, appliances, sinks, etc. ) thoroughly with hot water and soap or detergent. For more clean-up tips, visit the Ready. gov page on Returning Home and the CDC’s page on how to Clean Up Safely After a Disaster FEMA & Other Government Resources A wealth of resources can be found on the USA. gov Disasters and Emergencies page: Safety tips for returning to your area and safely inspecting damage in your home Address rumors circulating in the wake of a disaster and get accurate information How to replace lost or destroyed vital records Information on financial assistance for disaster relief How to help others affected by a disaster Download the FEMA Mobile App to receive alerts from the National Weather Service, get safety and survival tips, customize your emergency checklist, find your local shelter, and upload your disaster photos to help first responders. Visit FEMA. gov for other helpful links and information. NREIG is here to help Coverage Questions For questions about your NREIG coverage, email your CSA with any questions or concerns. Report a Claim To formally initiate the claims process, please follow the steps here and give as much information as possible. A member of our Client Experience team will assist you in getting your claim submitted to the appropriate carrier. Further Reading Check out more articles related to this topic: Is It Covered? Named Storm Reduce Your Risk of Mold After a Flood Do You Know the Difference Between Flood, Water Damage & Sewer Back-Up --- - Published: 2023-07-28 - Modified: 2023-07-31 - URL: https://nreig.com/ordinance-or-law-coverage-for-investment-properties/ - Categories: Coverage Options, Insurance Education - Tags: ordinance or law coverage It is common for state, city, and local municipality building codes and requirements to change over time. As you may know, existing buildings that do not meet new codes are typically “grandfathered” from needing to make updates immediately. However, if a loss occurred at one of those grandfathered buildings, the location would need to be brought up to the current code during the repair process before it could pass inspections. In extreme cases, local or state codes could require that a building be demolished and completely rebuilt. If your property insurance policy does not include Ordinance or Law, you likely only have coverage for repairs needed to bring the home back to its previous state. Therefore, any additional costs needed to bring the building up to code would not be covered by insurance. What is Ordinance or Law? Ordinance or Law is often referred to as “bring up to code coverage”. It offers additional reimbursement for buildings that- Suffered a covered loss Do not meet current building ordinances or laws Require upgrades (outside of repairing the home to its previous state) to meet current building codes It is important to note that Ordinance or Law is triggered by a covered loss. If the peril is excluded from your property policy, Ordinance or Law coverage is not available. What does Ordinance or Law cover? Coverage for the undamaged portion of the building: If parts of the building were not damaged but still need repairs to meet code. If the building needs to be demolished, your coverage limit is extended to the full value of the building. Demolition costs: If the entire building needs to be demolished in alignment with local ordinances. Increased cost of construction: Additional expenses for materials that go above the limit of property insurance. Commonly Required Updates Weatherproofing: In hurricane-prone areas, new local ordinances may require dwellings to have storm shutters or utilize certain roofing materials to withstand high winds. In flood-prone areas, ordinances may require certain elevations or stilting. Fire Safety: There may be new requirements for hard-wired smoke detectors or the presence of additional smoke detectors in certain rooms. Some areas may have requirements for the placement or frequency of fire extinguishers, fire escapes, or sprinkler systems. Handicapped Accessibility: Some cities may require ramps or other ADA-compliant features on the property. Plumbing or Wiring: New local ordinances may not accept older wiring types like knob-and-tube or aluminum. Local ordinances may require updates to water/plumbing systems. Example of an Ordinance or Law Covered Loss Let’s say you have a fourplex and two units suffer a partial loss. A county inspection determines the building does not have hard-wired smoke detectors and therefore, does not meet the current code. You are now required to update all four units. Ordinance or Law can cover updates to the undamaged portion of the building, expenses if the entire building needs to be demolished, and/or increased cost of construction if the property limit is not sufficient due to required updates. Contact your Client Service Advisor for more information or to see if your location qualifies for Ordinance or Law coverage. --- - Published: 2023-07-20 - Modified: 2023-07-27 - URL: https://nreig.com/what-to-look-for-on-a-tenants-background-check/ - Categories: Tenant Relations While the ability to make rent is important, you don't want to overlook the significance of a potential tenant's character. Missed rent payments can derail your cash flow, but someone who doesn’t respect your property (or you) can end up burning the house down—literally. A thorough background check should be a non-negotiable part of your tenant screening process. What qualities should you look for in a tenant background check service? Accuracy The service you choose needs to deliver accurate information on the correct person. When using a background check service, take some time to read reviews and see what other users of the service said. Sites such as Top Ten Reviews or Top Consumer Reviews are a good place to start. Any additional time spent finding a reputable service is a minor investment compared to the cost of eviction or an insurance claim later down the line. Ease of Use Look for a service that will allow you to access your reports easily at a later date. Your second or third choice for an apartment today might be your first choice on a unit six months from now. If the information presented in background checks is not familiar to you, you will want a service that will include explanations of each section of data, or that has a responsive customer support line. Search Customization A solid search service should provide a preview page that contains possible matches to the individual you are searching. That way, you don’t spend money on a report for the wrong person. Look for a service with expanded search capabilities, offering you a variety of ways to search for an applicant—by name or address, for example. Help and Support The best service is usually found with companies that provide a variety of ways for you to reach them. Many will allow you to contact them through phone, live chat, or email. Take a tour of the company’s website. See if you can easily find the information you’re looking for. Is there an FAQ section and keyword search? If you call to inquire about their services, is the staff friendly and engaged in the conversation? Chances are, you will have questions about the search results, and when that time comes, you will want a patient guide on the other end of the line. What types of searches are performed? The more information you can gather about potential tenants during a background check, the better. Database searches may include state or county court records, America’s Most Wanted, FBI’s Most Wanted, terrorist databases, and the National Sex Offender Public Registry. The following are some of the most common types of checks: Criminal Search Although many sites may advertise a nationwide criminal record check, let’s be clear, only law enforcement professionals have access to the National Crime Information Center (NCIC), which compiles a plethora of information to help criminal justice professionals apprehend criminals. With that stated, reputable background search services can compile data for you through multiple state searches. A criminal search may return a list of names that aren’t always a match to the applicant. For example, non-matching information may show up if there is only a partial name or date of birth in the court record. It is important to return all possible results to you as excluding a partial match may eliminate a record that may be just the one you’re looking for. This is precisely why such broad search criteria for criminal records are used. It is also important to know that criminal searches can vary from state to state. Each state has different guidelines for what information is available immediately. For example, Utah makes both felonies and misdemeanors available from the Utah District Court, while in Wyoming, there isn’t any information provided to the database. Instant criminal results may not be available for Delaware, Massachusetts, South Dakota, and Wyoming. This is why many services and property managers recommend doing a county search. Criminal history can be found by name and verified by the date of birth. Federal Bureau of Prisons Database This database contains the whereabouts of federal inmates incarcerated from 1982 to current. State Prison Inmate List In addition to searching the federal database, you will also want to search the state inmate list. Most state corrections departments have a search tool on their official websites. Be sure you are only using a government-sponsored search. Here’s an example from the Kansas Department of Corrections. County Court Records At the county level, one of the most important documents to look for is an eviction record. It can be a challenge to find eviction records as these may only show up if the eviction was filed and a judgment occurred. These searches will also give you results for other offenses at the county level, such as traffic violations. To be certain that your potential applicant hasn’t been evicted, your results should be cross-checked against a phone call to their previous landlords. If your potential tenant does show up in the county records, inquire further about the circumstances of the eviction and also be sure that you make notes accordingly in their file. The Office of Foreign Asset Control's List of Sanctioned National Threats Not only can renting to someone on this list be dangerous for others in the neighborhood, but it can also get you in major trouble with the federal government if you do any business with them. Executive Order 13224, signed right after 9/11, “prohibits any U. S. company from doing business with any person that (1) has committed a terrorist act, (2) poses a risk of committing or supporting terrorist acts, or (3) is identified on the list of Specially Designated Nationals and Blocked Persons generated by the Office of Foreign Assets Control. ” You can search this list right on OFAC’s website. A Note About the TSA No-Fly List This list is maintained by the Terrorist Screening Center (TSC). Don’t be fooled—the No-Fly List is not publicly available for search. The Department... --- - Published: 2023-06-23 - Modified: 2023-07-12 - URL: https://nreig.com/revamp-your-rental-without-renovating/ - Categories: Investing Tips - Tags: investing tips, renovation, rental tips Maintaining a visually appealing and up-to-date rental property is essential for attracting and retaining tenants. But full-scale renovations (especially in our current economy) can be expensive and time-consuming. Luckily, there are numerous upgrades to refresh and modernize your rental properties without forking over tens of thousands of dollars! Below are some simple yet effective updates that can transform the look and feel of your rentals, helping you maximize their appeal to potential and current tenants. Paint, Paint, Paint The best DIY bang for your buck is paint! A fresh coat on the walls can revitalize an entire home. Consider using neutral colors that appeal to a wide range of tastes. Repainting cabinets, vanities, doors, and built-ins can breathe new life into these fixtures, giving your property a modern and cohesive look. It’s All in the Details Even small upgrades can make a big difference! Replace old, discolored outlets and switch covers with new ones to give the space a cleaner look. Similarly, updating hardware on cabinets and drawers is an easy way to modernize kitchen and bathroom spaces. Replace Light Fixtures Outdated or worn-out light fixtures can make a space feel dull and uninviting. By replacing them with more modern alternatives, you can instantly elevate the overall ambiance of your rental. Choose light fixtures that complement the existing style and character of each room to create a unified look. Update Window Treatments Much like light fixtures, window treatments play a crucial role in the overall ambiance and functionality of a rental property. Consider replacing outdated or damaged curtains, blinds, or shades with new ones that let in ample natural light while still offering privacy. Check out this Buying Guide from Menards for an in-depth look at window treatment options. Update Doors Interior doors are often overlooked, but they can have a significant impact on the appearance of a home. While hollow core doors are a popular choice due to their budget-friendly cost, they often look cheap and are easily damaged. But completely replacing multiple doors can get expensive. If you have flat-panel hollow core doors, consider refreshing them with a simple DIY like this one from This Old House. Replace Old Carpet One of the most notable aspects of a rental property is its flooring. Replacing worn-out or stained carpet can instantly refresh the space and make it more appealing to potential tenants. To get the most for your money, choose a durable, low-maintenance option that can withstand heavy foot traffic. If you allow your tenants to keep furry friends, you may also want to consider a pet-friendly line. Remember... Updating your rental property doesn’t have to involve a complete renovation, and the internet is full of low-skill, low-cost home-improvement ideas. By implementing these simple yet impactful upgrades, you can transform the look of your rental property, attracting high-quality tenants and maximizing your rental income. With a few DIY projects and a little handiwork, your rental properties can stand out without the need for extensive renovations! --- - Published: 2023-06-01 - Modified: 2025-07-28 - URL: https://nreig.com/is-tenant-damage-covered-under-your-insurance-policy/ - Categories: Coverage Options, Tenant Relations - Tags: tenant damage, tenant protector plan, vacation rentals Many assume that under a landlord insurance policy, ANY kind of damage done by a tenant will be covered, but this is simply not the case. Though coverages vary, certain types of damage done by tenants are excluded in standard property insurance policies. While intentional tenant damage and wear-and-tear are almost always excluded, accidental damage done by tenants is covered by most landlord property policies. For example, an accidental kitchen fire caused by inattentive cooking would generally be covered. If Water Damage is included in your policy, it may also extend coverage for water discharge. For example, if a tenant’s child flushed a stuffed fish down the toilet and caused it to overflow, resulting in water damage to the bathroom floor and subfloor, that accidental discharge may be covered. Your policy will most likely exclude Sewer and Drain Backup unless you have NREIG's Tenant Protector Plan. How much can tenant damage cost me? The potential loss varies based on the time and resources needed to repair the damage to get the unit rent-ready again. Based on claims data, we’ve seen damage amounts equal anywhere from $5,000 to $30,000. It can be as much as your property is worth or greater depending on your geographic location. On top of repair cost, you must add in any lost rental income, unless you have Loss of Rents coverage in place. Interruptions like this can wreak havoc on your cash flow and profits but there are ways to avoid it! What type of tenant damage is excluded from your insurance policy? Two main types of tenant damage are excluded: Intentional Damage and Wear-and-Tear. Intentional tenant damage might be a tenant purposefully causing harm to your property during the eviction process or shortly thereafter; it is usually a sudden, one-time event. This could include damage such as broken doors, missing appliances, spray-painted walls, smashed mirrors, and a host of other nasty surprises. Damage like this is reimbursed through a security deposit or a civil suit. Wear-and-tear can look severe in some cases but is caused by the daily stresses of living over time. For example, broken blinds, marks on walls, worn/stained carpet, nail holes, scratched-up floors, and damaged bath fixtures. Most types of wear are just the cost of doing business, but it is up to you to decide which items would constitute normal maintenance versus those items for which the tenant will be held responsible. Check your local laws and ordinances regarding security deposits as well. These types of damage are NOT: Damage done by tenants is not considered Vandalism or Theft according to some carriers. Though the damage done to your unit may be similar to Vandalism or Theft, the difference is that you have a written contract (i. e. the lease) entrusting your tenant with the care of your property. That contract stipulates the penalties for any misuse of the property. How can I protect myself from intentional tenant damage? To Combat Intentional Tenant Damage: Two words – thorough screening. There is no substitute for placing a reliable tenant. If the relationship turns sour during their stay, Cash-for-Keys may be a good alternative strategy. Don’t be tempted to waive a security deposit to place a tenant. Placing someone that you may end up having to evict will likely cost you much more than foregoing one or two more months of rental income so you can do your due diligence in placing a better tenant. To Keep Wear-and-Tear to a Minimum: During the check-in and walk-through, give your tenant a detailed list of the cost to repair or replace specific items in the property. Your goal should be to help them get back their full deposit–let them know that upfront. Also, showing up for your regular maintenance visits demonstrates your care for the property and your lead may inspire them to take better care of their home. If you would like additional protection for tenant-caused negligent losses, ask your Client Service Advisor about our Tenant Protector Plan (TPP) or TPPx. Not only do both provide you with more coverage, but TPP also incudes up to $1,000 per residence premises in Skip Rent coverage to cover the last month's rent if a tenant skips out on you mid-lease. --- - Published: 2023-05-29 - Modified: 2025-08-18 - URL: https://nreig.com/protect-your-investments-from-the-damaging-effects-of-earth-movement/ - Categories: Coverage Options, Earthquakes & Sinkholes, Insurance Education, Weather Events - Tags: earth movement, earthquake, loss prevention According to the U. S. Geological Survey (USGS), all 50 states have some potential to experience damaging earthquake shaking, and there are about 20,000 earthquakes around the world each year. Yet, in a poll by the Insurance Information Institute, just 23% of homeowners reported they had earthquake or earth movement insurance coverage. Earthquakes pose one of the greatest threats of any natural disaster. They can trigger landslides, avalanches, floods, fires, and tsunamis. And unlike other natural events, they have no season, they can occur at any time of the year. In January 1994, the Northridge earthquake in Southern California caused an estimated $44 billion in damage, the costliest in US history. In its aftermath, the state established the California Earthquake Authority as a publicly managed provider of earthquake insurance. While earthquakes are most frequent west of the Rocky Mountains, there are risks across the entire United States. The New Madrid Fault spans many of the central states and has resulted in the largest earthquake in the continental US. The eastern states tend to have lower risk, but the potential damage is amplified due to the age of many buildings constructed before modern engineering and construction techniques. NREIG's Earth Movement Policy Earthquakes Although earthquakes cannot be prevented, you can take steps to protect your investment properties from their potentially devastating effects. Earthquake coverage is not included under standard property insurance. National Real Estate Insurance Group is able to offer a supplemental policy for Earth Movement on our monthly reporting form. NREIG's Earth Movement coverage extends to damage caused by a sudden and violent shaking of the ground resulting from the movement of the Earth’s crust. * What makes this product especially beneficial is that it also provides coverage for sinkholes, which are typically excluded from standard property policies. Sinkholes Sinkholes are naturally occurring depressions in the surface of the ground caused by the settlement or sudden collapse of land. While we are able to monitor seismically active areas and faults, there is no way to determine if there is, or isn’t, a sinkhole on your property. But they can cause extremely costly damage. The USGS conservatively estimates that sinkholes cause $300 million in damage per year. NREIG’s Earth Movement coverage can provide you additional protection should one of these natural disasters affect your investments. Your coverage comes with a deductible that is 10% of the Total Insured Value per location, subject to a $2,500 minimum and is available in 45 states. Exceptions include Alaska, California, Florida, Hawaii, and Illinois. Our Earth Movement coverage is available as a standalone option or as an add-on to your existing policy. To add Earth Movement to your properties, please contact your Client Service Advisor. Mitigate Additional Loss In addition to insurance coverage, here are a few tips you and your tenants can follow: Anchor bookcases, freestanding cabinets, and other furniture to a nearby wall Affix self-locking latches to cabinet drawers or doors Secure electronic equipment to the floor or table surface with braces or hook and loop closures. Use a protective film on glass windows, doors, and walls to prevent shattering. Replace rigid plumbing supply lines and couplings with flexible braided lines and flexible couples to reduce the chance of rupture. Install flexible connection pipes between gas or propane appliances/equipment and their supply lines. Gas lines should have an automatic seismic safety shutoff value at all structure entry points to cut off the flow of gas when seismic activity is sensed. Brace mechanical equipment such as boilers, furnaces, air conditioning equipment, and water heaters to the wall and/or floor to prevent overturning or shifting. When possible, ensure the hangers supporting your mechanical and plumbing systems are less than 12 inches long to reduce the sway during a tremor. Learn more at ready. gov/earthquakes. *Coverage does not extend to damage by mudslides, lava flow, flood, or fire that may have been triggered by the Earth's movement. Note: This piece is not to be construed as contractual. Applicable language specific to your policy supersedes it. Information contained in this post is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations, and conditions. --- - Published: 2023-05-25 - Modified: 2023-06-26 - URL: https://nreig.com/pools-decks-trampolines-are-these-amenities-worth-it/ - Categories: Insurance Education, Seasonal Tips, Summer - Tags: deck, pool, safety To attract the best tenants and beat out the competition, you may want to offer unique rental amenities. Some common perks may include a spacious kitchen, upgrades to flooring and countertops, or perhaps lawn service built into the cost of the monthly rent. During the summer season, some investors highlight decks, pools, or maybe even a tree house. Adding a trampoline or quality play equipment to the backyard may be nice for a family. However, these recreational items can also present some serious risks. The question is, does the prospective fun outweigh the potential danger? Decks Benefits for Your Tenant Decks are one of the more common rental property amenities. A beautiful deck provides a nice place to enjoy a morning coffee or breakfast, a fun place to entertain friends and family for dinners or a hangout, or a place to get some R&R or a suntan. The bottom line, decks extend the living space to the outdoors without the risk of getting all itchy! Injuries and Stats A recent study by the Consumer Product Safety Commission (CPSC) estimates that between 2016 and 2019, there were around 2,900 injuries and two deaths associated with the collapse or failure of decks, balconies, and porches. The CPSC also notes that around 90% of injuries related to decks and porches are attributable to reasons other than collapse or failure. One of the most common is falls from a deck or porch, due to things like faulty railings, poor lighting, slick surfaces, or the negligence of the person who fell. The North American Deck and Railing Association (NADRA) estimates that with more than 60 million decks in the United States, around 30 million are past their useful life and should be replaced or repaired. Risks and Problem Areas Any deck or porch made of wood will eventually fail and need to be replaced. Wooden decks have an average life expectancy of 10-15 years depending on climate and level of maintenance. Poor construction is the number one reason for deck failure. The most common point of failure for decks is at the connection to the house. They often fail because the deck is not connected to the house by the proper method. The second highest cause of deck failure is wood rot. When the moisture content in wood reaches 19%, rot begins. Treated wood lasts longer, but it will also eventually rot. Reports from people who experience deck collapse from rot say there is no warning. The deck doesn’t creak or moan – it simply collapses. Insurance Coverage If a deck fails suddenly and someone is injured, you may have coverage to replace the structure itself if that deck failure isn’t related to Wear-and-Tear. Wear-and-Tear is a standard exclusion in all property insurance policies as insurance is intended to cover sudden, unforeseen events – insurance is not intended to reimburse you for routine maintenance expenses. As for covering someone’s injuries, if they find you, the property owner, liable for the deck failure, your insurance can help cover an injured third party’s medical expenses. In that case, it may also reimburse you for any legal expenses for defense. However, if the cause of the deck collapse was faulty construction and you are not liable, you’d better be sure your contractor was properly insured. In that case, their General Liability insurance comes into play as they are the party at fault. How to Avoid a Disaster As a part of the inspection process, before you purchase a property, a deck should be checked for various items such as its structural integrity, railing size, strength, hardware type and condition, staircase issues, and general wear and tear such as splintered deck boards or loose fasteners. If any of these items are not in good condition, they may need to be repaired, or if the whole deck is in disrepair, it may be time to replace it. Decks need to be checked every year, and any necessary repairs must be promptly made to avoid injuries. Also, make sure anyone you hire is properly licensed and insured. Pools Benefits for Your Tenant Most people like pools as a rental amenity. They provide a refreshing place to escape the summer heat, health benefits if you’re the lap-swimming or pool volleyball type, and a fun place to socialize. Whether it’s looking forward to lounging poolside with a good book or seeing how long you can hold your breath underwater, the opening of the pool season is a time of great anticipation. Injuries and Stats According to a report from the CPSC, "there were, on average, an estimated 6,300 pool- or spa-related, hospital emergency department (ED)-treated, nonfatal drowning injuries each year for 2019 through 2021, and 389 pool- or spa-related fatal drownings reported per year for 2017 through 2019, involving children younger than 15 years of age. " The same report states that an average of 80% of the nonfatal drowning injuries from 2019-2021, and 73% of the reported fatal drownings from 2017 through 2019, involved children younger than 5 years of age. From 2017 to 2019, 67% of reported pool or spa drownings in a pool or spa occurred in residential locations. Risks and Problem Areas Pools are considered an “attractive nuisance” – an item that is so interesting that it would entice a child into entering another’s property. If you do not abide by local regulations regarding these nuisances, you may be held responsible if someone is injured on your property. Something like neglecting to put on a pool cover can have fatal consequences. Insurance Coverage Insurance policies can vary greatly on how they handle coverage for pools. Some policies exclude coverage for both damages to the pool itself and any injuries associated with the pool entirely. Other policies may offer some limited coverage for an additional cost. Bottom line, you cannot assume that coverage for your pool is included in your policy, or for that matter, the above-ground pool your tenant decides to erect a week after they move in. How... --- - Published: 2023-05-08 - Modified: 2023-10-19 - URL: https://nreig.com/the-perfect-tenant-check-out/ - Categories: Checklists, Investing Tips, Tenant Relations - Tags: tenants So your tenant needs to move. They have gotten a new job in a different city, are getting married and moving in with their spouse, or that new baby is going to need a nursery and there just isn’t room in the house they rent from you. Or, they could have been an awful tenant and you just want them out with as little damage and as quickly as possible. Whatever the reason, it’s now up to you to perform their move-out, assess the property for any damage they may be held responsible and issue a refund of their security deposit. Either way, handling this sensitive phase in your property’s life can make the difference between a simple paint re-fresh before placing your next tenant or your unit being totally destroyed. By following the tenant move-out process and checklists below, you can set yourself up for a smooth transition. Move-In Process A successful move-out is preceded by a thorough move-in process involving your carefully-screened tenant. This sets the expectation of what condition they should return the property to you at the end of their stay. Consider the experience of renting a car. The salesperson gets your credit card, makes sure you can pay for the rental, then walks around the rental car with you detailing any dent, dig and scratch on a form they retain for when you return to make sure there is no new damage for which they can charge you. The same holds true for renting properties, only I would suggest that you also take pictures, or better yet a video of every corner of the property. Yes, that includes the walls you just had patched and painted, the carpet you just replaced, the condition of the appliances, etc. Point out the conditions of each room and comment on the conditions, noting any existing damage on your Move-in/Move-out Condition Form. After you've completed the Condition Form with your tenant have them review and sign the document stating that they agree with the current property conditions. Give a copy to your tenant and keep the form for move-out as you do your final walk-through with your tenant. Regular Inspections What happens to a plant if you stop watering it? It dies, right? The same is true with any relationship. You may start off on a good foot with your tenant, but if you don’t maintain that relationship and show ongoing care for the property, the tenant will likely follow your lead of neglect. Be sure you have a regularly-scheduled inspection at least once every 6 months or a quarter to make sure that items like smoke and carbon monoxide detectors are fully functional, furnace filters are being changed on a regular basis, and the property is in overall good condition. Follow state laws on giving tenants notice before entering the property. If you employ a property manager, be sure they are actually following through on the items you pay them for in your contract. Get to know your neighbors as they may be your best eyes on the property other than a security surveillance system. Be sure they have your contact information so they can alert you of anything out of the ordinary or in case of an emergency. Make sure the tenant is paying rent on time. One of the first signs of trouble is if rent starts to become inconsistent. At this point, you need to stop and have an honest conversation with your PM or tenant before things get beyond a breaking point. You don’t want your tenants to skip out on you only to find out weeks later, your property is vacant and open to weather damages and thieves. Though it is for both your and your tenants’ benefit for them to purchase renter’s insurance, be sure it stays in force. You can best do this by requiring them to list you as an additional insured on their policy. It doesn’t confer any coverage, but you will be notified if the policy lapses. Renter’s insurance is inexpensive at $10-$30/month and it protects both your tenant’s belongings and can protect them and you if they cause accidental damage to the property. It may be in your best interest to give them a rent discount to offset the cost. Explain to your tenant this is one of the ways you would like to give them the best chance at getting their full deposit back. Overall, demonstrate that you care not just about getting rent, but about your tenant personally. No, you don’t have to invite them to your 4th of July picnic or become best friends with your tenants. In fact, I would advise against that. But, a small demonstration of care such as a holiday card or a small upgrade for renewal. Tenant Move-Out Responsibilities Tenants should be aware of the expectation of leaving the property in a move-in-ready condition. 30 days before move-out, send your tenant a Move-out Checklist, which includes specifics on what to clean, repair, and replace in the property. This checklist from Liberty Management Inc. is a great example of what to give your tenants before they move out. Repairs Though repairs may be noted during the move-out inspection process, I wouldn’t advise allowing your tenant to complete these repairs. Unless you have a tenant who is an experienced remodeler, the repairs may not be done to your specifications or standards and you will end up having to re-do the work. Also, though there may be some damage the tenant is responsible for, such as holes in sheetrock or doors, there also may be items that are simply needing normal maintenance and are not an item you would charge against the security deposit. It is up to you to decide which type of damage is which, but clearly state your position in your lease and remind them in the tenant Move-out Checklist. Your tenant’s early discovery of issues will help you with the rent-ready process, which may help you turn the... --- - Published: 2023-05-01 - Modified: 2023-10-09 - URL: https://nreig.com/named-storm-coverage-for-investment-properties/ - Categories: Hurricanes & Storm Surges, Insurance Education, Seasonal Tips, Summer, Weather Events - Tags: hurricanes, named storm, storm surge By policy definition, a named storm is defined as any Storm, Cyclone, Typhoon, Atmospheric Disturbance, Depression, Hurricane, Tropical Storm, or other Weather Phenomena designated by the US National Hurricane Center and to which a name has been applied. Tropical storms and hurricanes can cause severe damage to properties in coastal locations. It is estimated that Hurricane Katrina, the Category 5 hurricane that made landfall in Louisiana in 2005, caused between $75 billion and $100 billion in property damage. You may be lucky and have little damage from a named storm, or you could suffer a total loss of your investment. What type of damage does Named Storm cover? As soon as a storm is given a name by the National Weather Service, standard Wind/Hail coverage no longer applies. For damage caused by a named tropical storm or hurricane to be covered, your property policy must include Named Storm coverage. So, what is covered by Named Storm? Damage caused by the wind and rain from a Named Storm event. For example, if the event is determined to have created a “storm-created opening,” allowing rainwater to enter the home and causing damage within the property, the damage from rainwater may be considered a covered cause of loss. A "storm-caused opening" may be roofing shingles lifted by heavy winds or hail breaking a window and allowing rain to enter the home. However, if water enters the property due to a "storm surge," an abnormal rise of water level due to the presence of a storm, this would be considered Flood and therefore not covered by Named Storm. Additionally, water that leaks or seeps into the home because of a deteriorated roof or windows damaged by something other than a named storm is not covered. Examples of potential losses Hurricane or tropical storm damage can be caused by the force of the winds, rain driven by those winds, storm surge, and flooding. Below are common losses related to named storms and if they are insured. Ex 1: During a named storm, strong winds blew shingles off the roof - leaving it exposed to the elements and causing rainwater to leak into the home. The cost to repair the roof is insured. Water damage as a result of the storm-created opening is also insured. Ex 2: During a named storm, strong winds picked up a fallen tree branch and hurled it through a window at your property. The window was shattered and, as a result, rainwater leaked into the home during a separate storm the next day. The cost to repair the window is insured, subject to your property deductible. The water damage is not insured because that precipitation was part of a separate weather event following the named storm. Ex 3: Patio furniture was swept away by rising water during a storm surge. The cost to replace the patio furniture is not insured because the rising water was part of a storm surge following the named storm. Ex 4: Shingles on the roof of your property were worn down from years of exposure to the elements, causing a slow leak from the roof into the attic. Heavy rain from a named storm caused water to seep through at an even higher rate. After the storm passes, you notice water damage, structural damage, and mold in the attic. The water damage, structural damage, and mold are not insured because the roof was compromised before the named storm hit the property. If you have properties in a coastal location, it is extremely important to know what type of coverage you have regarding Named Storm. If you have any questions, you may refer to your policy documents or contact your Client Service Advisor. --- - Published: 2023-04-18 - Modified: 2023-06-08 - URL: https://nreig.com/investors-need-to-be-pro-active-entering-2023/ - Categories: Insurance Education - Tags: insurance tips, property insurance, real estate investing Originally published in REI Ink Magazine. If I could sum up the property insurance market in one word, it would be chaos. If you have been an investor for the last couple of years, you have undoubtedly had a challenging property renewal for your portfolio. You may have dealt with required increases to insurance value or experienced premium increases (or both) regardless of your loss history or account profitability. The last couple of years have been challenging, and it does not look like the next 12 to 24 months will be any better. Before Hurricane Ian hit, Florida homeowners were already paying the highest premiums in the country — nearly three times the national average. The state is increasingly difficult and expensive to insure and claims from the recent hurricane will only continue this trend. The aftermath of COVID is still being felt in the United States: rising interest rates, rising inflation, rising material costs, and almost every industry is experiencing labor shortages. These higher material costs and labor shortages are affecting claims payouts for carriers. This may lead to rate increases and even canceled policies or carrier insolvency. Additionally, longer repair periods leave investors missing out on potential rental income. Climate Catastrophes Hurricanes Contrary to popular belief, hurricanes and tornadoes are not occurring more frequently. They are, however, more severe. NASA reports that global warming has caused seas to rise, leading to a higher storm surge and resulting in more intense rainfall and an increase in coastal floods. Tornadoes Even though the total number of tornadoes per year has remained relatively stable, recent years have shown changes in their patterns. Tornado events are becoming more clustered, and evidence suggests that tornado patterns have shifted geographically. The number of tornadoes in the states that make up Tornado Alley continue to fall, although tornado events are on the rise in Mississippi, Alabama, Arkansas, Missouri, Illinois, Indiana, Tennessee and Kentucky. Wildfires Wildfires have been occurring in new territories as well. These fire events are largely taking place in areas of the country that, historically, have been lower for insurers, and therefore were afforded lower insurance costs. Property rates in Western states are a fraction of what they are in the Midwest or Southeast. Unfortunately, just one extreme event can drastically affect a carrier or program’s profitability, causing them to halt business in these areas. Catastrophes Drive Up Property Rates According to National Centers for Environmental Information, there were 20 individual billion-dollar weather and climate disasters. What stands out is the diversity of disasters: a winter storm across the deep south and Texas, a wildfire event impacting seven states, flood events in California and Louisiana, tornado outbreaks, etc. And let’s not forget Hurricane Ida, the most expensive hurricane to make landfall in Louisiana since Katrina in 2005. 2022 did not provide any relief for these property markets. The same triggers were seen across the globe again this year. And just when we thought we would make it through the hurricane season without significant landfall in the United States, Hurricane Ian hit Florida. Damage estimations range from $42 to $258 billion. The insurance market trend we have seen in Florida over the last few years will continue as claims arise from the hurricane. Climate catastrophes have driven up property rates for everyone, regardless of geographic location or individual loss history. Why are we seeing this trend? Reinsurance carriers are increasing their reinsurance rates for primary insurers. Unfortunately, primary insurers (your carriers) then pass that cost on to the end buyer, which is all of us. Looking Forward The aforementioned factors all contribute to what is shaping up to be a chaotic 2023 property market. Although situations will differ, initial numbers for 2023 renewals show a 30-35% increase in property insurance costs on clean risks. “Clean” means your portfolio has had no property losses and is not located in a region prone to catastrophes such as wildfire, hurricane, or convective storm areas. If you have had losses and/or your property is in a catastrophe-prone area, you could potentially see a 60-70% increase on your property this upcoming term. We are experiencing a hard property market, and in times like these, you should always shop annually for your insurance. You will get much more out of shopping for benefits, policy structure, and included coverages than you will for price. There is not that much fluctuation between property carriers. The most you can save is pennies on the dollar. Insurance agents that are selling on cost alone are struggling right now. Those that can find benefits and comprehensive coverage for the same cost are of more value to you. A good insurance agent will work with you to find ways to keep your costs stable. If you are comfortable taking on a little bit of additional risk, you and your agent can look at increasing your property deductible, changing your policy form from Special to Basic, and switching to actual cash value coverage instead of replacement cost coverage. Remember, if any of your properties have a lender, you will be required to stay within their insurance lending guidelines. You must check with your lender and insurance agent before you make or request these changes and understand any added risk. Your insurance agent should be an expert and be able to guide you in the right direction while providing you with the positive and negative implications of any changes to your property policy. I also stress the importance of being as proactive as possible with your renewal. Do not wait until the last minute to aggressively shop your coverages and costs, as markets will be limited. Your agent should certainly be ahead of this, but if not, you need to make sure they start shopping your renewal 60 days out. Lenders start requesting renewal proof of coverage from your agent around this time as well. As an investor, you want the best terms, applicable benefits, and the broadest coverage form. In a hard market, this will be to your advantage.... --- - Published: 2023-03-29 - Modified: 2025-06-17 - URL: https://nreig.com/micro-flipping-what-is-it-what-types-of-insurance-does-it-require/ - Categories: Coverage Options If you closely follow real estate investment trends, you may have heard the term “micro flipping" thrown around recently. While some large companies like iBuyers, Zillow, Redfin, and Opendoor have been utilizing this strategy for a while, it is becoming increasingly popular among individual investors. Micro flipping is a type of wholesaling strategy in which technology and data are used to find undervalued properties. Despite the name, it does not involve a micro amount of renovations before selling. In fact, investors typically never even see the property in real life! But protecting your interest, no matter how long you hold a property, is extremely important. What is micro flipping? As mentioned above, micro flipping is similar to traditional wholesaling but with a few key differences. Wholesalers work with the sellers of distressed and undervalued properties to arrange purchase by an investor who plans to rehab the home. The wholesaler may never take ownership or have any insurable interest in the property. In contrast, micro flippers search for and purchase properties that require zero sweat equity. Micro flippers do most of their work from a computer, using software to analyze data and find properties listed below the market price. A micro flipper's goal is to purchase an undervalued property and sell it almost immediately at a properly valued sale price. So, the term “micro” describes how quickly the transactions happen. Think of it like day trading real estate. Micro flipping is a volume-over-profit real estate investing strategy. It is common for investors to only make a few thousand dollars on each property. However, the upside to micro flipping is that you can make multiple deals in a short amount of time because the process moves so quickly. So, if you close four deals in an eight-hour workday, you could make around $10,000 a day- all from the comfort and convenience of your own home. Micro flipping is legal in most U. S. states, the exception being Illinois. Although it is not technically banned, Illinois has put many regulations in place to make it very difficult for investors to utilize this strategy. Before beginning any new business venture, it is always a good idea to review local laws and/or speak with an attorney to ensure you follow regulations. What insurance do I need for micro flipping? Any real estate that you own should be insured - whether you own a property for hours, days, or years. If something were to happen at your property during the period you own it, you (or your company) could be named in a lawsuit or have a property claim on your hands. The minimum coverage you should carry on a micro flip property is Premises Liability. We cannot stress this enough - even if you only own the property for a couple of hours, something could happen. If someone were to injure themselves on the property during that short amount of time, you will be thankful to have liability coverage. You don’t want the headache of an uninsured loss while your name is still on the deed. For the same reason, we also recommend that you consider Property coverage for any loss that may occur to the property itself. While unlikely, it is possible for a fire, vandalism, or some other property loss to occur while you hold the location in your name. Real estate investors, and especially those who micro flip, rely on a computer system or network to conduct day-to-day business. For this reason, you should strongly consider Cyber Liability coverage. Cyber attacks on small businesses can range from hacked email accounts to unauthorized wire transfers and credit card fraud to personal data breaches and identity theft. Business Liability is another coverage we recommend to all real estate investors. Business Liability covers the business, not the location, and offers Personal and Advertising Injury coverage. This protects your business against claims of slander, libel, copyright infringement, marketing misrepresentation, etc. Finally, if you choose to obtain your real estate license, you will need to purchase a Real Estate Errors & Omissions policy to cover your business practices as a licensed real estate agent. As you may know, E&O protects against mistakes and oversights that lead to a lawsuit. This insurance can help cover legal costs that might otherwise negatively impact you and/or your business. How micro flipping fits into our program NREIG’s innovative program is designed to support the varying needs of all real estate investors, regardless of your investing strategy. We can provide Premises Liability and Property coverage with no minimum earned premiums. Meaning you only pay for coverage during the month(s) you need it. Our online portal also simplifies the process of adding and deleting locations from your account- just one more thing you can do from your computer! Contact your Client Service Advisor if you have any questions. Learn more about the other creative investment strategies we insure here. --- - Published: 2023-03-28 - Modified: 2025-08-18 - URL: https://nreig.com/evaluating-your-flood-insurance-options/ - Categories: Coverage Options, Floods, Insurance Education, Water, Weather Events - Tags: flood It is important that property owners understand their risk exposure to flood AND are aware that their property insurance policy most likely does not include this coverage. There are several options available to you for flood insurance, so read on to help evaluate your risk and determine the right course of action for you. What is a Flood? A flood occurs when two or more acres of dry land or two or more properties are inundated by water or mudflow. This is typically the result of an overflowing body of water, but could also be oversaturated ground from intense rain storms causing water to seep through foundation walls, or damage from a hurricane or earthquake storm surge. It is important to note that even if you have Named Windstorm and/or Earthquake coverage, it will not cover loss from storm surge flooding that results from either of those perils. To be considered a flood loss, the water must come from an external source (not from within your plumbing or sewer system). What many people consider to be a “flooded basement or kitchen” may actually be Sewer & Drain Backup or Water Damage when it comes to insurance. Read more about the difference between various water-related losses here. Knowing Your Risk FEMA (Federal Emergency Management Agency) maintains maps of flood zones based on a given area’s risk of flood. These maps identify high-risk flood zones- denoted as letters A (non-coastal) or V (coastal), moderate-risk zones– denoted as letter B or shaded X, low-risk zones– denoted as letters C or X, and letter D zones- areas with possible but undetermined flood hazards. You can find out your flood zone here. Most mortgage companies lending on a property in an A or V zone will require that the property owner carry flood insurance. This is common for federally-regulated or government-backed lending institutions. However, even if your property is not in a high-risk flood zone, you may still be exposed to loss from a flood. In fact, 20-25 percent of flood losses nationwide are outside of a high-risk zone. Even in a moderate-risk zone, you have higher than a 1 in 4 chance you’ll be flooded during a 30-year mortgage, which is more likely than a fire. The average flood loss can cost nearly $40,000, so flood insurance should be considered for any property, regardless of location. What Flood Insurance Covers A typical flood policy will have a set building coverage limit (commonly $250,000) and will cover: Essential systems in the home (such as electric and plumbing, furnace, HVAC, etc. ) Appliances Carpet Walls and built-in cabinets and shelves Foundation walls In many cases, a limit for a detached garage Usually, personal property coverage can also be purchased up to a defined limit. What is NOT covered includes damage by mold or mildew from a flood that could have been avoided, additional living expenses or loss of use if the resident has to relocate for a period of time, cars or vehicles, and oftentimes contents that are in the basement. Exploring Your Options There are several options to consider Flood Insurance. NFIP FEMA administers the National Flood Insurance Program (NFIP), which is backed by a network of over 50 insurers. On October 1, 2021, FEMA launched Risk Rating 2. 0, a new pricing methodology in which flood zones are no longer used to calculate rates. FEMA notes, "Under Risk Rating 2. 0, premiums are calculated based on specific features of the individual property- including distance from water, type of flooding, flood frequency, structure foundation type, height of the lowest floor relative to Base Flood Elevation (BFE), and the structure’s replacement cost value. Risk Rating 2. 0 also adds pluvial flood risk—flooding from heavy rainfall. " These policies offer up to a $250,000 building coverage limit for residential properties and $500,000 for 5+ units, plus the option of purchasing up to $100,000 of personal property coverage. FEMA's offering is an annual policy. NFIP drawback: There is a 30-day waiting period to obtain coverage unless it was purchased when the property was purchased or the area is newly designated as a high-risk flood zone. NFIP is an annual policy that can only be canceled mid-term for a limited number of approved reasons (e. g. the mortgage was paid off, the home was sold, or the location is no longer in a high-risk area after a map change). Private Flood Flood Insurance is also available through private insurers. While coverage will be similar to that under the NFIP, private insurers can set their own rates based on a wider variety of factors, especially related to the building itself (age, square footage, number of stories, etc). Private flood options are also typically more flexible with coverage limits, waiting periods, and additional coverage options. NREIG has two private flood options. Our Program Flood master policy can be purchased as an add-on to your current coverage. The upsides of this option are that it is included in your monthly schedule and bill, it remains in force unless it is canceled (no annual payment or renewal), AND there is no waiting period – coverage can start right away. Properties with one to four units can obtain up to $250,000 of coverage and five to twenty-unit properties can obtain up to $500,000 of coverage, subject to a $1,000 deductible ($5,000 in Massachusetts). Program Flood drawback: Although this coverage is equivalent to NFIP, some lenders will only accept NFIP. The second option we offer is through Neptune. This offering allows for higher limits of coverage (up to $4 million for building and $500,000 for contents) as well as options for temporary living expenses, basement contents, detached structures, and pool repair. Neptune Flood drawback: There is a 10-day waiting period to start coverage. While Neptune can often be a more affordable option, it is also an annual policy with an annual renewal, subject to the same cancellation restrictions as NFIP. Flood coverage is available as a standalone option or as an add-on to your existing... --- - Published: 2023-03-01 - Modified: 2025-08-18 - URL: https://nreig.com/service-line-coverage-for-investment-properties/ - Categories: Coverage Options - Tags: water back-up Did you know that damage to external service lines is not covered under a standard property policy? Depending on the type and severity of the damage, repair work can be quite expensive. HomeGuide reports that the average cost to replace or repair a main sewer line is $3,818, with most spending between $2,250 and $5,750. A complete replacement can cost anywhere from $8,000 to $30,000. NREIG offers a Service Line coverage add-on to help protect you financially in the event of a costly incident. What is considered a service line? Service lines are exterior underground utility lines that run from the street to the home and provide a service to the premises. Utility lines may include water pipes, power lines, cables, and the main sewer line. Covered service lines may include, but are not limited to: Communications, including cable transmission, data transmission, internet access, and telecommunications Compressed air Drainage Electrical power Heating, including geothermal, natural gas, propane, and steam Waste disposal Water What type of damage does our Service Line product cover? This product covers the failure of a service line. In this case, “failure” means a leak, break, tear, rupture, collapse, or electrical arcing. A covered service line failure may be caused by, but is not limited to, the following perils: Wear and tear, marring, deterioration, or hidden decay Rust or other corrosion Mechanical breakdown, latent defect, or inherent vice Weight of vehicles, equipment, animals, or people Vermin, insects, rodents, or other animals Artificially generated electrical current Freezing or frost heave External force from a shovel, backhoe, or other form of excavation Tree or other root invasion *Service line failure does not include blockage or low pressure when there is no physical damage to the covered service line. * Potential Service Line losses in our program Insured losses may include damages to covered service lines, excavation costs, outdoor property, and expediting expenses. Below are a few common losses related to service lines and if they are insured: Tree roots have grown into your property’s water line, causing a break. As a result, water from the main line fills your yard, and the water bill is 4x the usual amount. The cost to excavate and replace the water line is insured. The additional water bill expenses are not insured. A tenant flushed multiple non-flushable items creating a clog in the line between the house and the main sewer line. The line remains intact but causes the sewer to back up into the property. The cost to excavate and replace the sewer line is not insured because there was no physical damage to the service line. The cost to clean sewer backup damage inside the home is not insured. NREIG offers the Tenant Protector Plan for instances like these. TPP includes a sublimit of property coverage for Sewer & Drain Backup. Learn more about this offering here. A tenant regularly parks their vehicle in the yard, directly over a service line. As a result, the line breaks and must be replaced. The cost to excavate and replace the line is insured. NREIG’s Service Line offering has two coverage limits- $10,000 or $15,000. Although, coverage for lines that are 50 years or older is limited to $2,500. Service Line coverage is available as a standalone option or as an add-on to your existing policy. To add this coverage to your properties, please contact your Client Service Advisor. --- - Published: 2023-02-27 - Modified: 2023-02-27 - URL: https://nreig.com/preparing-your-property-for-severe-spring-weather/ - Categories: Insurance Education, Seasonal Tips, Spring, Water - Tags: flooding, hail, spring, thunderstorms, tornado, wind It may feel a little early to be talking about spring weather preparedness, but now is the time to start thinking about potential risks. You want to prepare your property before they present a real threat. You may be surprised at how much planning needs to be done as thunderstorms, flooding, and tornadoes approach. So, how can you prepare your properties and tenants? Step 1: Get familiar with your risk The United States has around 15 diverse climates with cities spread across nearly 2. 3 billion acres of land. If you invest in several states, it can be a challenge to keep up with the changing weather conditions in each region. Communicating with tenants in a timely manner and operating proactively is crucial. Even if your properties are all located within the same city, the unpredictable weather we’ve experienced the past few years requires that you or your property manager be on the ball for anything that could suddenly drop out of the sky. The first step to minimizing losses is becoming familiar with the weather where you invest. The following maps show which areas are most prone to severe thunderstorms, hail, tornadoes, and flooding. Severe thunderstorms & lightning Source: https://www. weather. gov/jetstream/tstorms_intro Source: https://hazards. fema. gov/nri/lightning Hail Source: https://hazards. fema. gov/nri/hail Tornadoes Source: https://hazards. fema. gov/nri/tornado Flooding At weather. gov’s safety site, you can select a state on the map (pictured below) to learn more about the types of flooding experienced there and how you can protect lives and property. You will also find which National Weather Service offices forecast for the area and more. Step 2: Make a plan & take action The second step to minimizing losses from severe weather is to make a plan and take action. Some actions you can take well in advance of a storm approaching, whereas other steps might not be possible or practical to do until just before the storm arrives. Either way, planning ahead will enable you to act swiftly to protect your property and any inhabitants in a severe weather event. Specific preparation for common spring weather hazards Catastrophic weather events can completely destroy your property and even minor storms can create costly damage. Storms may cause power outages that lead to sump pump failures, flooded basements, and damaged furnaces or water heaters. A lack of AC can create a ripe environment for mold growth, and it is possible that looters may take advantage of a lack of security due to power outages. Below are the four most common spring weather hazards and how to prepare for those risks. Thunderstorms & Lightning In most places, these storms can occur year-round and at any hour of the day. Be sure your sump pump and security alarm are both connected to battery backups. Use a generator during power outages. (Remember to keep generators and other alternate power/heat sources outside and never try to power the house wiring by plugging a generator into a wall outlet. ) If windows and doors have been damaged in a storm, board up your property to keep trespassers and vandals out. Read about Lightning Safety on the NWS website. Share this FEMA resource with your tenants: Be Prepared for a Thunderstorm, Lightning, or Hail Wind & Hail Any area of the U. S. can experience high winds and hail, but the Midwest and Southeast tend to have an increased risk for damage caused by these two perils. Secure loose gutters and downspouts. Keep your trees and shrubs well maintained so they are more wind-resistant. Remove dead or dying trees from the property so they can’t fall on your investment, your neighbor’s property, or a passerby. As storms approach: When there is a threat of high winds, move any deck furniture or other items that could become dangerous projectiles indoors. Cover all windows. Install permanent storm shutters or board up windows with plywood to help prevent windows from being damaged. Tape does not prevent windows from breaking. Brace garage doors with additional support from the inside. Utilize tarps to help keep rain from entering the property and causing additional damage after the initial event. Read about Wind Safety on the NWS website. Share this FEMA resource with your tenants: Be Prepared for a Thunderstorm, Lightning or Hail Tornadoes The Midwest and Southeast generally have a greater risk for tornadoes. Keep up on tree maintenance. Trim dead limbs and remove dead trees to keep flying debris from damaging the main structure. Instruct tenants to bring in any outdoor furniture and deck or yard decorations if severe weather is in the forecast. Build a “safe room” to FEMA or ICC 500 standards where tenants can seek refuge. Read about Tornado Safety on the NWS website. Share this FEMA Resource with your tenants - Be Prepared for a Tornado Flooding Any area can be overwhelmed by a flash flood, but some areas are more susceptible to flooding than others. Check your flood risk on FEMA’s Flood Map Service Center page. Consider adding Flood coverage to your insurance strategy. Bear in mind that Flood coverage is always purchased separately from property coverage and if you choose coverage through the National Flood Insurance Program there is a 30-day waiting period for Flood coverage to go into effect. NREIG's program does not have any waiting period for Flood coverage. Check the grading of soil around your foundation to be sure water will flow away from the house when it rains. Install additional drainage if necessary or regrade problem areas. Make sure gutters and downspouts are clear of blockages to help shed water away from the home. Test your sump pump before storms arrive to ensure it comes on when water flows into the sump pit. Stack sandbags around the perimeter of the house and in front of entryways to prevent rising water from entering the property. Read about Flood Safety on the NWS website. Share this FEMA resource with your tenants: Be Prepared for a Flood Insurance Coverages & Responsibilities Don’t wait until... --- - Published: 2023-02-23 - Modified: 2025-11-12 - URL: https://nreig.com/5-key-rei-relationships-to-avoid-heartache/ - Categories: Insurance Education, Tenant Relations - Tags: real estate investing Real Estate Investing (REI) is by nature, a profession dependent upon relationships. Think about all the people you interact with in one acquisition alone: sellers, the sellers’ agent, property inspectors, settlement agents, bankers, lawyers, and the list goes on and on. Today, we will focus on five key relationships that are crucial to your investing success after you have purchased your dream property. These ongoing relationships can either pave the way to investing bliss (and profit! ) or some serious heartache that could cost you everything. What are they? Key REI Relationship #1 – Your Property Manager Many of the losses we see occur because of an “absentee” Property Manager (PM). If they stop monitoring your vacant property a thief may walk away with all your copper pipes and appliances, while a lack in maintenance could be the start to a major mold issue. If you manage your own properties, you might want to ask yourself, “Would I hire... me? ”. Heartache a Poor Property Manager Can Cause: Poor tenant selection – You don’t want just any human being that breathes living in your properties; often the wrong tenant is more costly than losing a month’s rent to find a better fit. Loss of rental income – If a PM doesn’t rent your property to a qualified tenant, you could experience an inconsistency in rents coming in, which could have a big impact on your ability to grow your RE business. Injury to a tenant or guest – A PM’s performance of routine maintenance is crucial as it can prevent larger property losses and potentially prevent a serious injury or even death of a tenant or a guest. Property abandonment – If a Property Manager simply decides to forgo monitoring your property, the (bad) possibilities are endless. Simply put, you could lose your entire investment. 4 Benefits of a Great Property Manager: Quality tenants – A good PM has a proven strategy to get the best renters with stable rents coming in. Fewer losses – You can’t prevent a hail storm, but timely maintenance can keep larger losses and unnecessary injuries from occurring on the premises. Less money out of your pocket for repairs – Fewer losses, mean fewer repairs, which ultimately lowers overall expenses. Good cashflow/profitable investment – Ultimately, a PM’s involvement should help maximize the profitability of your investment. Read more about how to find a great PM in: “5 C’s to Choosing a Quality Property Manager” Key REI Relationship #2 – Tenants If you have a tenant who takes care of your rental property as if it was their own, that can be an investor’s dream. On the other hand, if a tenant doesn’t take pride in their place of residence, the amount of destruction they can cause can really be shocking. With this relationship, you need a thorough screening process so you have a solid grasp on your renter’s character and rental history before they move in their sofa. It is better to go an extra month to find the best tenant than place someone who does not meet your qualifications and opens you up to a variety of risks. Heartache that Problem Tenants Can Cause: Lost rental income – Promises don’t equal paying rent. You don’t have to abandon your humanity, as we all know that sometimes “life happens,” but remember what your rental property is for: to produce a profit. Excessive cleanup in between renters – Even if you have consistent rents coming in, how well are your renters taking care of your property? An excessive amount of cleanup can slow down your ability to re-rent and could end up costing you months’-worth of rent and additional repair costs that you may not be able to recoup from your tenant. Lawsuits – Lawsuits are not only costly, they are stressful and time-consuming. All too often we see lawsuits involving an alleged slip-and-fall filed shortly after a tenant has been served an eviction notice. Total loss of your investment – Evicted tenants may also try to get “revenge” by setting their former home on fire. Benefits of Having Great Tenants: Consistent rents – This seems like a no-brainer and it is your goal. Consistent, timely rents arriving in your account every month. Minimal cleanup between renters – The better your tenant takes care of your property during their stay, the less you will have to replace when they leave and the longer items in the house will last. Replacing the carpet less often and not having to paint or repair drywall sure sounds nice, doesn’t it? You can also help your tenants avoid an unintentional disaster by providing them with information on how to be safe in their homes. Less stress – For most, real estate investing is not a passive event. However, having a good tenant can make your investing life a lot less difficult, take up less of your family/personal time, and you may just get a little more sleep too. More profitable investment – Consistent rent and fewer repairs are a winning cashflow combination. Ultimately, your goal is to make a profit. Great tenants are crucial in helping you achieve your number one objective! Read more about how to find great tenants in the following article: “What to Look for on a Tenant's Background Check” Key REI Relationship #3 – Contractors Many investors really struggle with finding a reliable contractor, and it is a common topic on many real estate blogs. We agree that it is crucial to hire skilled and reliable, licensed, and insured contractors. Finding a quality contractor is key to avoiding some major pitfalls during a renovation, and you should have a thorough vetting process for them just as you do for Property Managers and tenants. Heartache Problem Contractors Can Cause: Delays in finishing your project – Time is money. Rehab work can be particularly tricky because you might find some surprises behind those one-hundred-year-old walls. That stated experienced contractors don’t make promises beyond their abilities to secure the... --- - Published: 2023-02-22 - Modified: 2024-09-16 - URL: https://nreig.com/information-about-burst-pipes-at-your-properties/ - Categories: Water, Winter - Tags: burst pipes, frozen pipes, winter Even if you own properties in states not as prone to subzero temperatures during the winter, it is important to anticipate an increase in incidents related to burst pipes. Here we've compiled some helpful information if there is an incident at one or more of your properties. In the event of a winter storm and the subsequent volume of claims, be aware that there may be extended timelines for contact from an adjuster, inspections, and loss handling. Additionally, water mitigation and restoration companies may not be as readily available to assist. Mitigating Loss In order to mitigate damage or additional loss, take the following steps: Turn off the water at the main. If safe, take steps to pump out any standing water and dry the affected area to limit the damage. Mold can grow quickly if standing water is left. Take care in areas of the property where water may have compromised the electrical system to avoid a dangerous situation. Turn off the electricity or switch off breakers as warranted. For your benefit, please take reasonable precautions to ensure the security of your property so that no further damage is caused. These actions are also part of your obligations as an insured. For more information, see the “Duties in the Event of a Loss” section of your policy. Any expenses you may incur for a covered loss could be considered a part of your claim, so please retain your receipts for any repairs made. Coverage Information Coverage for water-related losses due to frozen pipes is considered a part of the Water Damage peril. Basic Form coverage does not extend coverage for water losses, and therefore damage from a burst pipe may not be covered if the policy coverage in place is Basic Form. Special Form policies will generally allow for coverage to the insured property for the ensuing water loss caused by frozen pipes. Some Special Form policies include limited coverage for Mold as a result of a covered loss. The image below provides a general outline of covered causes of loss for Basic and Special Form policies, but consult your policy for details. Submitting a Claim If you have identified damage at your insured property and would like to report this occurrence, click here to fill out the Report an Incident form, providing as much detail as possible. To assist with expediting the claims investigation, supporting damage and expenses due to your loss please retain the following to submit with your claim: Take photos or videos of the broken pipes and subsequent damage If you are able to replace frozen pipes before the adjuster is able to review the damage, keep the old pipes Retain receipts or invoices for any cleanup or repairs made Provide utility bills for the month prior and the current month, if able, to confirm that heat is maintained at the property If you have any questions or concerns about your coverage, please contact us at 888-741-8454. Our office hours are Monday through Friday between 8:00 a. m. to 5:00 p. m. Central Standard Time. You may also email us at claims@nreig. com. --- - Published: 2023-02-06 - Modified: 2023-02-28 - URL: https://nreig.com/2022-insured-loss-events-in-review/ - Categories: Earthquakes & Sinkholes, Fall, Floods, Hurricanes & Storm Surges, Insurance Education, Seasonal Tips, Spring, Summer, Tornadoes & Thunderstorms, Weather Events, Wildfires, Winter, Winter Storms - Tags: hurricane, loss prevention It has been another chaotic year for the property insurance market. If you’ve been an investor or homeowner for the last couple of years, you’ve likely experienced required increases to insurance value, premium increases, or both. The last few years have been challenging, and a continuously hardening property market has not helped. It is increasingly important for you to ensure that your insurance agent is advising you on ways to save money while maintaining adequate coverage. Before we turn our attention to 2023, let’s look at the insured loss events of 2022, how it impacts the market, and what we can learn from it all. Extreme weather events 2022 was another active season for weather events in the United States. According to Climate. gov, the U. S. experienced 18 separate weather events costing $1 billion or more. That places 2022 in a tie with 2017 and 2011 for the third-highest number of billion-dollar disasters in one year. Similar to last year, 2022 weather events were diverse. Winter The year started with Winter Storm Izzy severely affecting the Southeast. The high winds, freezing temperatures, snow, and ice left more than 100,000 homes without power. Large hail and strong wind gusts targeted Texas in late February, causing significant damage to roofs. Total losses exceeding $1 billion were reported in multiple counties. Texas Governor Greg Abbott said the storm was one of the most significant icing events they’ve had in at least several decades. Tornadoes were not much of a headline in the first couple of months. January saw 37, and February saw 11 confirmed; both are relatively normal numbers compared to previous years. However, as the transition to spring began, we saw a major increase. Spring March typically averages 80 tornadoes each year in the U. S. By the end of the month in 2022, a whopping 234 were confirmed. Most of these emerged in the South and Southeast region, with 179 reported in just a week. On April 5, an EF4 tornado touched down in Georgia, injuring 12 people and destroying multiple neighborhoods. Research compiled by National Geographic indicates that there have been fewer days in a calendar year with at least one tornado but more days with over thirty. In other words, tornado events are becoming more clustered. Evidence suggests that tornado patterns have shifted geographically. The number of tornadoes in the states that make up Tornado Alley continues to fall. Although, tornado events are on the rise in Mississippi, Alabama, Arkansas, Missouri, Illinois, Indiana, Tennessee, and Kentucky. Wildfires and drought took over the Western and Central U. S. for most of the spring, summer, and fall. The National Interagency Fire Center reported that 7,577,183 acres were burned because of wildfire in 2022. Although this seems like a large number, and it is, this is considered an average season right now. Summer Extreme heat and drought severely impacted Western and Southern Plains states. Large reservoirs in these areas have been depleted. Climate. gov reports that the United States' largest reservoir, Lake Mead, is nearing dead pool status. The water level is the lowest it has been since it was filled in the 1930s. This drought was one of the costliest in U. S. history- around $22. 2 billion. The extreme heat caused over 100 heat-related fatalities across Arizona, Nevada, California, Oregon, and Texas. Towards the end of July, Kentucky, Missouri, and Illinois experienced intense rainfall that led to severe flooding. The National Weather Service reported rainfall in Kentucky was over four inches an hour at one point. In Missouri, 7. 68 inches of rain fell in just six hours. Fall We can’t discuss 2022’s extreme weather without acknowledging Hurricane Ian. On September 28, the Category 4 hurricane made landfall just south of Punta Gorda, Florida. 150 mph winds and over 20 inches of rainfall resulted in significant inland flooding and property damage. Hurricane Ian is the third costliest tropical cyclone, causing $113. 1 billion in damage. According to the Florida Department of Law Enforcement, the death toll is currently 145. Hurricane Nicole crossed the same region in Florida six weeks later, causing an estimated $1. 6 billion in damage. Winter Winter Storm Elliott brought dangerous weather conditions in late December. Much of the U. S. experienced strong winds, brutally cold temperatures, and blizzard conditions. The storm caused significant damage, mainly burst pipes, and losses were estimated at $5. 4 billion. Around 50 inches of snow fell in Buffalo, leaving many stranded and first responders unable to help. How is the insurance market reacting? The extreme weather events of 2022, Hurricanes Ian and Nicole especially, caused a significant shift in the insurance market. Many carriers in Florida have suspended writing new business to assess their financial situations and ability to stay afloat. Unfortunately, this also means that substantial rate increases are imminent in Florida as carriers attempt to keep pace with the costly number of insurance losses. Although Hurricane Ian missed Louisiana, carriers are still feeling the impact of the 2020 and 2021 hurricanes. Most properties in Louisiana have the potential to experience significantly expensive losses, making it difficult for carriers to maintain a healthy book of business. Many insurers have defaulted or withdrawn from the state, either by canceling existing policies or announcing they will not renew them. Other parts of the country are also starting to see changes in property insurance. Rates and losses are being evaluated across the board due to the increased severity of tornadoes, floods, and other inclement weather. We will likely see stricter underwriting guidelines, especially in Florida and Louisiana. Some carriers attempting to remain in markets like these may also increase standard deductibles to offset their risk. The cost of labor and materials is also affecting insurance carriers. Although prices have somewhat stabilized, materials and labor remain more expensive now than before the pandemic. Property owners are experiencing costlier losses, and insurers are experiencing costlier claims. Looking to save money on insurance in 2023? Read 8 Ways to Reduce Property Insurance Costs. What can... --- - Published: 2023-02-06 - Modified: 2026-01-12 - URL: https://nreig.com/equipment-breakdown-coverage-for-investment-properties/ - Categories: Coverage Options - Tags: equipment breakdown, furnace, hvac Out-of-pocket repair costs for damage caused by common home appliances, furnaces, and HVAC systems can hurt your business. NREIG's Equipment Breakdown offering helps protect investors like you by covering the physical and financial damage that can result from an accidental breakdown of equipment. What does Equipment Breakdown cover? Our offering is among the broadest in the industry. We insure many types of equipment that most other companies exclude. The following exposures may exist at your property and are included under this coverage: HVAC systems Electrical panels & emergency generators Home security systems Sound systems Computer-controlled equipment Fans, motors, compressors, and pumps Coverages we offer under Equipment Breakdown include, but are not limited to: Property Damage Off-Premises Property Damage Business Income Extra Expense Data Restoration Mold Environmental, Safety, and Efficiency Improvements Examples of potential losses Equipment Breakdown covers damages caused by power surges, electrical shorts, mechanical breakdowns, motor burnout, and more. Below are some common Equipment Breakdown losses that may be covered. Electrical arcing destroyed three main electrical panels and left the building without power. Temporary measures had to be taken to restore power to tenants. Costs to obtain and run backup generators would be an example of temporary measures that may be covered by Equipment Breakdown coverage. An apartment complex’s electrical supply burned out and severely damaged electrical wires and cables. Affected tenants had to be relocated as a result. Equipment Breakdown may cover the equipment repair cost and the relocation costs. The motor in a building’s air conditioner burned out. Temperatures exceeding 90 degrees required four spot coolers to be rented and set up in tenant’s apartments. Overtime pay for maintenance staff was required to replace the motor. Equipment Breakdown may cover the rental cost of the spot coolers and extra expenses associated with keeping the building cool (overtime paid to staff). A power surge damaged electronics including the computer system, telephone system, hardwired smoke detectors, and security system. Equipment Breakdown may cover the cost to restore these systems back to an operational state. Sediment in a boiler caused a low water condition that triggered severe over-firing and resulted in the broiler shutting down. A rental unit was necessary until the damaged boiler could be replaced. Equipment Breakdown may cover the cost of the replacement boiler and the cost of the required rental unit. A section of a boiler and a steam pipe fitting cracked and had to be replaced. Equipment Breakdown may cover the cost of replacement parts and required labor. Equipment Breakdown is available as a standalone option or as an add-on to your existing policy. To add this coverage to your properties, please contact your Client Service Advisor. *Equipment Breakdown coverage is NOT a home warranty and does NOT extend to wear and tear or deferred maintenance. * *Equipment Breakdown coverage is not available for new construction locations. * --- - Published: 2023-02-06 - Modified: 2024-09-16 - URL: https://nreig.com/is-it-covered-burst-pipes/ - Categories: Coverage Options, Insurance Education, Is It Covered?, Seasonal Tips, Water, Winter - Tags: flooding, mold, sewer back-up, water It's a common misconception that water damage from a burst pipe at your investment property is automatically covered. Water Damage from a burst pipe is not included under Basic Form coverage. Broad and Special Form formats of property insurance policies cover this peril and are the coverage formats you will most likely see offered in insurance programs for investment properties. All this to say, if you have Basic Form, you do not have coverage for water damage resulting from a burst pipe. If you have Special Form coverage, water damage coverage is included. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! Basic vs Special Form Coverage Compared *Risk of Direct Physical Loss above refers to any peril not listed on the chart. In the Special Form, unless a peril is listed as an exclusion within the policy, there is coverage. This is referred to as “Open Perils. ” However, with both Basic and Broad form coverage, a peril must be listed within the policy for there to be coverage. What is Considered Water Damage for Insurance? Water Damage must be “sudden and accidental” to be covered. Examples include a pipe bursting or the accidental overflow of a bathtub. In colder seasons, frozen water in a pipe may cause that pipe to burst. For Water Damage coverage to be available, one must certify they have attempted to maintain heat in the building or have fully drained the system and shut off the water supply. Rain that damages the interior of a property after the roof was compromised from a storm is also under this coverage. Damage over time, such as a slow leak that triggers mold behind walls, may not be covered depending on how long the condition was left to develop. You will want to report any such issues to your insurer promptly. What is the Difference Between Water Damage and Flood? A flood may occur due to water from rivers or lakes breaching their banks during heavy rains. The over-saturation of the ground can also cause a flood if excess water seeps through foundations or other vulnerable parts of the structure. Rising waters are a key component of a flood and are different than an overflowing bathtub, which falls under Water Damage. Flood coverage is never part of Basic, Broad, or Special Form coverage. It is a stand-alone policy, purchased separately from other Property and Liability coverages. How is Sewer Backup Covered by Insurance? Sewer Backup is another common exclusion in property policies and is defined as “water that backs up or overflows from a sewer, drain or sump. ” Drains and sewers can back up during storms. So, what is commonly referred to as a “flooded basement” may or may not technically be flooded when it comes to insurance. It all depends on how the water enters the space. With that stated, investors will want to ensure that basement drainage systems are well-maintained and that sump pumps get tested regularly to help avoid water damage from sewer backup. Though a sewer backup involves plumbing, it is a separate peril, and limited coverage may or may not be available, depending upon the insurer. How Do I Add Coverage for Water Damage? You can make sure you have Water Damage coverage by purchasing a Special Form policy. This will cover water damage from a burst pipe. Special Form coverage does cost more than Basic Form coverage, but when you consider how many more perils are insured, it’s easy to understand the difference in pricing. Be aware that Basic Form is typically the only format available for vacant properties, which is why protecting them against frozen pipes is so important! What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: “We will not pay for the loss or damage caused directly or indirectly by... Water: Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); Mudslide or mudflow; Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump, or related equipment; Water under the ground surface pressing on, or flowing or seeping through: Foundations, walls, floors, or paved surfaces; Basements, whether paved or not; or Doors, windows, or other openings; or Waterborne material carried or otherwise moved by any of the water referred to in Paragraphs 1, 3, or 4, or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs 1 through 5, is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, seawall, or other boundary or containment system falls in whole or in part, for any reason, to contain the water. ” As insurance policies may vary, please check your own policy for language specific to your covered property. How Much Can Water Damage Cost? Water losses can range from a few hundred dollars to tens of thousands depending on the extent of the leak or intrusion. Consider that 40,000 gallons of water (the capacity of a small water silo) can pour through your investment property quickly. Prolonged moisture can cause catastrophic mold damage if not attended to within 24-48 hours. If you own a multi-unit property, adjacent units could be affected by this peril. You could even be held liable for water that flows into your neighbor’s property.... --- - Published: 2023-01-31 - Modified: 2024-11-04 - URL: https://nreig.com/is-it-covered-garages-fences-other-structures/ - Categories: Insurance Education, Is It Covered? - Tags: Other Structures Some assume coverage for garages, fences, and other outdoor structures is automatically included in their insurance policy as these items are located on the same land as the main house. Coverage for “Other Structures” is usually always included in standard homeowners policies (whether you need it or not). However, coverage for investment properties operates differently, and some “detached structures” or “outdoor fixtures” may not be included unless coverage is specifically requested for those items. In other cases, coverage may simply not be available for them at all. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Types of Damage Could Be Excluded? Coverage on a garage is usually included with the coverage for the main structure if it is attached. The word “attached” may have different meanings depending upon the policy, so read carefully. Some policies may include coverage for a garage attached to the main structure by a breezeway, while others may still define that garage as “detached. ” Detached garages, on the other hand, usually fall under the category of Other Structures. If your Declarations page or Evidence of Insurance does not list a limit for Other Structures, your detached garage is likely NOT covered. Aside from garages, fences and other “outdoor fixtures” such as outdoor furniture are typically not covered. However, some commercial policies do allow coverage for outdoor furniture if it is used to maintain or service the building. Some Builders Risk policies do offer coverage for materials, equipment, supplies, and “temporary structures” on or within 100 feet of the premises during construction. It is best to check your policy language to see what specific coverage is offered or excluded for your property. What Happens if I Don’t Have Coverage for Other Structures Included in My Policy? If you don’t have Other Structures coverage and your detached garage is damaged by a fire, for example, the insurance company will not pay to repair or rebuild it. As mentioned previously, one should not assume that Other Structures' coverage is automatically included. Look for a line item on your Declarations page or Evidence of Insurance labeled “Other Structures. ” It may simply say "included," “excluded,” or may give a specific coverage amount. Some properties have very nice “mother-in-law suites” on the top floor of a detached garage, so if you have a significant secondary structure on your property, be sure to ask your agent how to adequately protect it. Can I be Held Responsible if My Tree Damages a Tenant's Belongings Being Stored Outdoors? The short answer is it depends on the circumstances of the loss. If your tree falls on the tenant’s lawn mower and the incident is determined to be an “act of God,” that tenant will then need to rely on their renter’s insurance to reimburse the loss of the mower. The key to the definition of an “act of God” is that it's an “injury due directly and exclusively to natural causes which could not have been prevented by the exercise of reasonable care and foresight. ”However, if the tenant had sent the property owner a written notice warning of the condition of the tree in the backyard, but the owner did not attempt to remedy the hazard, they may be responsible to replace their damaged mower. Your liability coverage may kick in to cover the damage, but bear in mind that a deductible still may be applied, leaving you to pay for that mower out of your own pocket. Replacing a mower is one thing, but if that same tree were to injure your tenant as they were mowing the backyard, it may be much more costly to you and them, financially, physically, and psychologically. How do I Add Other Structures Coverage? If coverage for Other Structures isn’t already included in your policy, you can typically add a separate amount of coverage for those items, such as a detached garage. Whether or not coverage for fences and other outdoor property can be added may depend upon the type of building you’re insuring and what policy format is being used to insure the property. If you are able to add Other Structures coverage, it typically does cost extra and will depend upon how much coverage is being requested. For example, adding $10,000 worth of coverage will not cause a significant increase in cost; however, insuring another structure that is equivalent in function to the primary building could double your cost. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look similar to this:Other Structures Coverage as Listed on a Declarations PageA. DWELLING $100,000 OTHER STRUCTURES $10,000 (or EXCLUDED)B. PERSONAL PROPERTY EXCLUDEDC. LOSS OF USE ACTUAL LOSS SUSTAINEDLanguage Excluding Fences and Other Outdoor Property“Covered Property does not include the following property while outside of buildings:Fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs, or plants (other than “stock” of trees, shrubs or plants), all except as provided in the Coverage Extensions. ”Outdoor Fixtures and Furniture Exclusion Endorsement“This Policy does not insure any loss or damage, cost or expense or any increase in insured loss, damage, cost or expense which arises from loss or damage to outdoor furniture or fixtures, whether or not directly or indirectly caused by or resulting from any peril otherwise insured under this Policy. ”If Coverage for “Outdoor Fixtures” or “Uninstalled Materials” is Included in a Commercial Policy“Covered PropertyBuilding, meaning the building or structure described in the Declarations including:(1) Completed additions;(2) Fixtures, including outdoor fixtures;(3) Permanently... --- - Published: 2023-01-12 - Modified: 2025-03-25 - URL: https://nreig.com/replacement-cost-vs-actual-cash-value/ - Categories: Coverage Options, Insurance Education - Tags: actual cash value, coinsurance, featured, replacement cost, valuation methods When it comes to settlement methods, you have two options to choose from Replacement Cost (RC) and Actual Cash Value, (ACV). These two options determine how your claims payout is settled in the event of a loss. So, what’s the difference? Depreciation. Regarding property insurance, depreciation represents the estimated reduction in value based on how much useful life is determined to be left in the damaged property. This is calculated by an adjuster, factoring in criteria such as age and general wear and tear. Both RC and ACV account for depreciation. However, one settlement method allows for reimbursable depreciation whereas the other does not. Replacement Cost (RC) This settlement method allows claims to be settled with reimbursable depreciation. Replacement Cost coverage requires you to be insured to a higher valuation per square foot but provides you with more financial protection. For example, a kitchen fire at your property causes a partial loss, totaling $30,000 in damage. The deductible on this property is $3,000, so the insurance carrier will pay no more than $27,000. An assigned claims adjuster visits the property to determine how much useful life was left in what was damaged. The actual cash value of the loss after depreciation is determined to be $15,000. You will receive a payment of $12,000 (the actual cash value minus the deductible). That $12,000 will go towards the necessary repairs and replacements. If expenses exceed that amount, you will pay out of pocket. Let’s say the cost of repairs totaled $20,000. With provided receipts, a second check for reimbursable depreciation will be issued for an additional $5,000. Replacement Cost allows you to recoup some or all of the depreciation that was taken from you. The only part that is not recoverable is your deductible. Actual Cash Value (ACV) Actual Cash Value policies pay the depreciated cost to repair or replace your damaged property and/or its contents. ACV coverage pays you for what the property and/or its contents are worth at the time of loss. Coverage with this settlement method is typically 20-25 percent cheaper than an RC policy and allows you to be insured to a lower value per square foot. However, ACV does not allow you to recover any depreciation. For example, the same $30,000 kitchen fire occurred at a property with an ACV settlement method and a $3,000 deductible. The adjuster depreciates $15,000 from the loss. You will be issued a check for $12,000 (actual cash value minus the deductible). With an ACV policy, $12,000 is all you can recover from this $30,000 fire loss. What you may not know is you can do whatever you want with that money- fix the damage or cut your losses, sell the property as is, and use the money to buy a car. As a side note, depreciation is extremely difficult to determine until the loss occurs. It is based on the date of the last updates, not the original year built. Everything depreciates at a different rate, but the average is about 1% annually. Although roofs deteriorate much quicker due to weather exposure. Consider the following when choosing your loss settlement method: 1. At NREIG, we always recommend that you consider what you would do in the event of a total loss. Would you rebuild the property? Or would you clean up the land, sell it, and move on to another opportunity? If you would not rebuild, there is very little reason for you to have RC coverage. You would be paying more to the insurance carrier than you would ever recover in the event of a loss. Remember, you must make the necessary repairs to be able to recover the depreciation. 2. You may be wondering why we are speaking in terms of a total loss and not a partial loss. There are a couple of reasons: You most likely can make the repairs (or have access to someone who can) for substantially less than what your insurance carrier thinks you can. We have noticed that 60-65 percent of our investors who suffer a partial loss and have Replacement Cost coverage never go back to the carrier to recoup any depreciation. Not because investors don’t want to, but because the initial payout was enough to make them whole again. 3. If you have a loan on the property, most likely your lender will have a set of insurance lending requirements that you will have to meet or exceed. Oftentimes, lenders will require you to carry Replacement Cost coverage. Our team is happy to provide you with a full policy/coverage comparison of what you currently carry and what we can provide. Call us at 888-71-8454. Or email Info@NREIG. com. Note: This piece should not be construed as contractual. Applicable language specific to your policy supersedes it. Information contained in this post is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations, and conditions. Learn More About Coverage Options Basic, Broad, or Special- Which Coverage Form is Right for Me? Understanding Coinsurance --- - Published: 2022-12-20 - Modified: 2023-06-26 - URL: https://nreig.com/even-healthy-trees-need-maintenance/ - Categories: Insurance Education, Investing Tips, Seasonal Tips - Tags: damaged trees, dead trees, trees Well-kept trees can add value to your property, help save energy, and reduce crime. The downside? Falling trees or large limbs can cause costly damage. In 2022, 8. 6% of the claims reported to NREIG were for tree-related damage. We strongly encourage including tree inspection on your regular maintenance checklists. Unmaintained or dead trees can be an eyesore and detract from your property’s curb appeal. However, the problems a dead tree can cause go far beyond looks. Dead trees or branches can fall without warning, causing property damage or serious injury to tenants, their guests, or a passerby. Dying or leaning trees can unexpectedly fall on power lines, cars, and even pedestrians passing by your property. Dead trees may attract creatures, such as termites, rats, and insects to take up residence in and around your property. Even healthy trees can be jeopardized by nearby diseased or insect-infected trees on your property. Did you know? A few tree species have brittle wood, making them more susceptible to damage in a storm. Chinese elm, silver maple, boxelder, various poplars, and Bradford pears are all prone to wind damage or injury from heavy snow and ice. A tree’s roots can also lessen its chance of surviving a storm. Damaged roots can create points of entry for pathogens and reduce its ability to take up nutrients and water. This kind of damage endangers a tree’s structural support, increasing the risk of it falling during a storm. Trees, like all living things, change over time. You should have regular pruning done at least once a year. Doing so promotes healthy limb and branch growth. Once dead branches are removed, the tree’s nutrients can be directed to healthy branches, making it less vulnerable to pests and diseases and reducing the likelihood of dying branches and limbs falling on your property. A tree that was healthy and survived the last storm isn’t guaranteed to survive the next one. Protecting yourself from tree damage First, know what is in your policy: Read the sections of your insurance policy that address trees, shrubs, and landscaping. It is important to know both what you are and are not covered for. If you don’t understand something or have questions, don’t hesitate to contact your Client Service Advisor who would be happy to help you! Inspect your trees on an annual basis: Keeping greenery in good shape should be one of your top priorities for your exterior maintenance list. Keeping up with your trees can prevent costly damage, and maintaining a tidy yard, especially on vacant properties, can help reduce the potential for your property to be vandalized. In addition to regular maintenance, be sure to check your trees after any large storms; broken limbs may need to be trimmed immediately to avoid a loss. Hiring a professional is best: Be sure any arborist you hire has been certified by an organization such as the International Society of Arboriculture or the Tree Care Industry Association. They will also need to have the appropriate liability insurance. To find an arborist in your area, call TCIA at 800-733-2622 or run a Zip Code Search on www. treecaretips. org. ISA-certified arborists can be found through a search tool at www. isa-arbor. com. Make sure your tenant understands their responsibilities: Though any tree-trimming responsibilities will likely fall to you as the owner, your tenants must know what they are responsible for when it comes to the outside of the property. Be sure to specify in your lease what they are also not allowed to do at the property! At the bare minimum, they should contact you if they see any hazardous conditions. Make sure they have an easy way to contact you or the property manager if a tree is damaged or damages the property (or the neighbor’s property) during a storm. After a tree falls There are many different scenarios in which a tree may have caused property damage. Below are some steps you should take after a tree falls: If your tree falls on a neighbor’s property or tenant’s car... Generally speaking, the claims process will move fastest if your neighbor files a claim with their homeowners' insurance. As for your tenant whose car has been damaged, they should file a claim with their auto insurance. You can always start a liability claim on your end; although, a payout in a liability claim requires the establishment of negligence. If your insurance carrier doesn’t find you at fault for the tree falling, which is often the case, the claim will be denied. To establish negligence there must be some sort of proof (usually in writing- a text message, for example) that the tree was dead, the neighbor or tenant had made you aware of the tree’s condition, and that you neglected to do anything to remove the hazard. Let’s say the tree had fallen during a storm. That would likely be deemed “an act of God” and therefore, not covered in a liability policy. In this scenario, the neighbor’s homeowners insurance or the tenant’s auto insurance would pay for any damages. If your neighbor’s tree falls on your property... If the damage from your neighbor’s tree is enough to warrant it, you will want to submit a property claim. Although, depending on your deductible, it may make more sense to repair the damage out of pocket rather than risk a future premium increase for having this loss on the books. If your insurance carrier pays out, they will likely subrogate against your neighbor’s insurance company. Subrogation refers to the right an insurance company has (after they’ve paid a covered claim) to request reimbursement from the at-fault party. The reimbursement typically comes from the at-fault party’s insurance company. If your insurance carrier is successful in the subrogation process, you may be reimbursed for your deductible. Another option is to have your neighbor start a liability claim with their insurer. However, this can take a bit longer than a property claim to settle. The same rules apply here in terms of establishing negligence.... --- - Published: 2022-12-18 - Modified: 2024-01-12 - URL: https://nreig.com/is-it-covered-theft-vandalism/ - Categories: Insurance Education, Is It Covered? - Tags: theft, vandalism Many people are unclear about the differences between acts of theft, vandalism, and burglary, as well as whether or not coverage for those perils is available under the three main policy formats: Basic, Broad, and Special. Theft, Vandalism, and Burglary insurance can be limited, and the cost of a single break-in for a vacant or renovated property can be over four times the national average, so it is important to understand the differences and limitations. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What are the differences between acts of theft, vandalism, and burglary? Below are definitions from an insurance perspective. Other industries may define these differently. Theft: the taking and carrying away of the personal goods or property of another without permission. Vandalism & Malicious Mischief: the intentional injury or destruction of property without theft. For example, someone spray painting the walls with graffiti, breaking sinks and toilets, or punching holes in walls. Burglary: includes damage to your property caused by burglars, but not theft of property. An example would be the damage done to an entry door when burglars pry it open. Is it considered vandalism if a tenant purposefully damages a unit? No, a tenant intentionally damaging your property is not considered Vandalism from an insurance perspective. Depending on the laws of the state, they may have committed a crime, but your tenant is not a stranger who has broken into your home. Tenant damage is treated differently within the insurance contract because you have allowed them to be a caretaker of your home through the lease agreement. Basic, Broad, and Special – Which coverage is available under each format? Though the most common policy formats used for real estate investment properties tend to be Basic and Special Forms, below is a summary of what coverages are available under each of the three policy formats. Basic Form: Includes Vandalism & Malicious Mischief (VMM) Broad Form: Includes VMM and adds Burglary Damage Special Form: Includes VMM, Burglary Damage, and adds Theft Learn more about these three coverage formats here. Can insurance coverage for Theft, Vandalism, or Burglary be limited? Yes. Unlike perils such as fire, these coverages may have their own sublimit underneath the property coverage limit. Even if you have insurance coverage for Theft, VMM, or Burglary, the limits of coverage may still be restricted for just those perils. So, while you may have insured your property for $100,000, you may only have $30,000 worth of coverage for Theft, Vandalism (VMM), or Burglary. Your deductible may also differ for those losses. Check your policy for specific details, or contact your agent if you have questions. Are contractor tools covered in my insurance policy? If they aren’t covered under another policy, tools may be covered. Coverage can vary widely in this area though, so it is best to check the details of your specific policy. Some Builder’s Risk policies include coverage for equipment and uninstalled materials but may have limits on the type of equipment – bulldozers and other heavy equipment may not be included, or there may be no coverage for tools at all. How could vacancy affect my ability to get Theft and Vandalism coverage? If your property is vacant, your insurer may require certain protective safeguards to reduce the risk of theft and vandalism. They may require your property to be “boarded and secured,” meaning all windows and glass doors should be protected against glass breakage. They also may require you or your property manager to continue maintaining the property (e. g. , cut the lawn, perform routine repairs, stay current with local codes) and visit weekly to ensure the property remains secure. If these protective safeguards are not in place at the time of loss, insurance coverage for Theft, VMM, or Burglary may be excluded. What if I forget to tell my insurer about a change in occupancy? Some standard insurance carriers don’t insure vacant properties, which could become very problematic if you have any type of loss. Even if a carrier insures vacant properties, your coverage may be reduced if you don’t report a change in occupancy within a specified time frame. This is because the insurance contract they have with you is written for a specific stated risk and its related premium. The new vacant status puts the insurer at an increased risk, for which there is also an increased cost. If they haven’t agreed to the new risk, and you haven’t paid them for that new risk, they aren’t bound to pay claims on that new risk. As such, it is crucial to report any changes in occupancy to your insurer as soon as possible. How do I add coverage for Theft, Vandalism, or Burglary? While Vandalism is typically included in all three formats, you will need to either purchase Theft or Burglary coverage in addition to the Basic Form or purchase a Special Form policy. When you consider how many more perils are insured, it’s easy to understand the additional cost that comes with Special Form coverage. What does the technical lingo for this exclusion look like in my policy? Sample policy language may look similar to this: Basic Form policy “When Basic is shown in the Declarations, Covered Causes of Loss means the following... Vandalism, meaning the willful and malicious damage to, or destruction of, the described property. We will not pay for the loss or damage caused by or resulting from theft, except for building damage caused by the breaking in or exiting of burglars. ” Special Form policy “We will not pay for loss... --- - Published: 2022-12-17 - Modified: 2024-12-02 - URL: https://nreig.com/is-it-covered-sewer-backup/ - Categories: Insurance Education, Is It Covered?, Water - Tags: flood, Is It Covered?, pipes, plumbing, service line, sewer back-up, water back-up, water damage Many people think their property policy automatically includes Sewer Backup coverage. However, according to the Insurance Information Institute (I. I. I. ), most homeowners and business insurance policies do not include coverage for sewer backup unless that specific coverage is added to the policy. As it may or may not be included, you have to study your specific policy to know if you have Sewer Backup coverage. This is true whether one has a Basic, Broad, or Special Form policy. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What are some of the most common causes of sewer backup? Blockages due to tree roots: Over time, tree and shrub roots can cause damage to sewer lines. A small crack can become a large problem as roots seek water sources. Trees that are the source of the problem may be from your yard or under city jurisdiction. To determine who is responsible, the city can take root samples and find out which trees are causing the issue and therefore, who needs to fix it. Sanitary main: Blockages can occur in city mains and if not detected in time, sewage from the main can back up into homes and businesses through floor drains. If water is entering the basement rapidly, report the problem immediately to city public works so they can investigate. Is “Sewer Backup” considered Water Damage, Flooding, or its own peril? Sewer Backup is defined as “water that backs up or overflows from a sewer, drain, or sump. ” Drains and sewers can back up during storms. So, what you or I call a “flooded basement” may or may not technically be “flooded” when it comes to insurance – it all depends upon how the water enters the dwelling. That stated, investors will want to make sure that any drainage systems in basements are well-maintained and that sump pumps are regularly tested to help avoid water damage from sewer backup. Since a sewer backup involves plumbing, it is a separate peril on its own and limited coverage may or may not be available, depending upon the insurer. How does Sewer Backup differ from a flood? A flood may occur when water from natural sources such as rivers and lakes breach their banks during heavy rains or when the ground is over-saturated with water and causes the excess to seep through foundations or other vulnerable parts of the structure. One of the key components of a flood is rising waters, but that is different than water and other items that flow in from sewer drains. Important: Flood coverage is never a part of the Basic, Broad, or Special coverage forms – it is set up as a stand-alone policy and purchased separately from your other Property and Liability coverages. How can I add Sewer Backup to my policy? Some carriers offer the ability to add Sewer Backup for an additional cost. It is not always the cheapest coverage to add, so you might want to consider a higher deductible for this peril to offset the additional premium. Most carriers can assign a unique deductible for this peril alone, much as they do for Wind/Hail (in some areas of the country), Named Windstorm, Earthquake, and Flood. Within the Program, our Tenant Protector Plan (TPP) is a way to buy back limited Sewer and Drain Backup coverage for occupied properties. What does the technical lingo of this exclusion look like in my policy? Sample policy language may look like this: “We will not pay for the loss or damage caused directly or indirectly by... Water: 1) Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); 2) Mudslide or mudflow; 3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; 4) Water under the ground surface pressing on, or flowing or seeping through: a) Foundations, walls, floors or paved surfaces; b) Basements, whether paved or not; or c) Doors, windows or other openings; or 5) Waterborne material carried or otherwise moved by any of the water referred to in Paragraph 1, 3 or 4, or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs 1 through 5, is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, seawall or other boundary or containment system falls in whole or in part, for any reason, to contain the water. ” As insurance policies may vary, please check your own policy for language specific to your covered property. How much can sewer backup damage cost me? Sewer Backup losses can vary from a few hundred dollars to tens of thousands depending upon the extent of breakage or tree root intrusion. What can I do to protect myself from sewer backups? First, know what is in your policy: Read the sections of your insurance policy that address Sewer Backup. It is important to know both what you are and are not covered for. If you don’t understand your coverage or have questions, don’t hesitate to ask your agent who should be happy to help you! Properly dispose of grease: Inform your tenants that they should not pour cooking oil down the drain. The buildup will likely lead to a clog in your system. Oil should always be poured into... --- - Published: 2022-12-05 - Modified: 2022-12-05 - URL: https://nreig.com/8-ways-reduce-property-insurance-costs/ - Categories: Coverage Options, Insurance Education - Tags: coinsurance, renter's insurance We understand that when you spend less, you make more. Furthermore, when times are tough (and even when they aren't) it's smart investing to find ways to reduce costs and maximize your ROI. Follow these tips to manage your property insurance costs and always work with an agent who is looking out for your best interest as an investor. 1. Use an Independent Broker You should work directly with an independent insurance broker that specializes in insuring residential rental properties (apartments, single-family rentals, duplexes, triplexes, etc). An independent broker represents multiple insurance companies. And, an independent broker that specifically insures rental properties is even better. Having an independent broker is extremely important for many reasons. Not every insurance company is interested in taking on every rental property, and if they were you'd likely be paying a higher premium. Using multiple insurance carriers ensures the broker can offer you the broadest coverage at the most competitive price. Such a specialist also knows how to protect your assets best because they are working with properties similar to yours every day. 2. Raise Your Deductible Deductibles are the amount of money you have to pay towards a loss before your insurance company starts to pay a claim on your policy. The higher the deductible, the more money you can save on premiums. Insurance companies typically require a deductible of at least $1000. If you can afford to raise your deductible to $5,000, you may save as much as 25% on your premium. You can also raise your deductible on problem areas of your portfolio, such as Wind/Hail. It may be a wise choice to have an increased deductible on wind/hail if you have had prior losses. Another example would be a separate water damage deductible. If you have sustained a water damage claim of significant size, it may be best to take a larger deductible in that area to offset the risk for the insurance carrier. 3. Combine Policies In most cases, insurance companies have a minimum premium threshold for an individual policy. Sometimes, it's more cost-effective to combine your portfolio into one policy. A rental property insurance specialist can (when using the correct program) combine occupied, vacant, and rehab properties onto one policy. Often companies offer multiple locations and/or building discounts. These discounts often increase with the number of locations on a policy and discounts of 5-30% are common. 4. Improve Security and Fire Safety The next way to reduce property insurance costs is to improve security and fire safety. Depending on your insurance company, hardwired smoke detectors, central station alarms, sprinkler systems, and more may generate discounts of up to 25%. 5. Change the Co-Insurance Percentage to Match Your Needs If you are insuring your properties to their full replacement cost, then increase your co-insurance percentage to 100% (increasing the co-insurance from 80 % to 100% will reduce the rate that you pay). The opposite may be true for older buildings. If you could fully rebuild your building using modern construction techniques for less than it would cost to replace it with like kind and quality materials, you may reduce the building’s replacement cost to a limit that equals the modern construction replacement cost. So, if that limit is 20% lower than the full replacement cost you insure at the lower limit and reduce the coinsurance requirement to 80%. 6. Improve the Exterior Appearance of Your Property Most insurance companies want to see photos of the property before giving the price. Many companies offer higher pricing or refuse to insure the property due to how the property presents itself on the exterior. Big negatives include: peeling paint, damaged/deteriorating siding, some or all of the roof in bad shape, garbage outside the building, lack of handrails, etc. 7. Ask about Other Discounts A number of discounts may be offered by companies as we mentioned, but they may not offer the same discount or the same amount of discount in all states. You must ask your broker or company representative about any discounts available. Nothing is automatic. Shop, compare, and ask. Insurance knowledge can be powerful. 8. Require all Tenants to Carry Renters Insurance Many rental property owners have a clause in their lease requiring the tenant to carry renters insurance. While this is a plus for them it also helps you save money in the long run. Tenants will eventually do something that your insurance will be forced to cover, all because the tenant didn’t carry renters insurance. If they do carry renters insurance, their policy will pay for a lot of liability and property losses on your premises. The fewer claims that you have, the lower your cost of insurance. If you don't want the hassle of ensuring your tenant's renters policy is in force, check out our Tenant Protector Plan. Note: This piece is not to be construed as contractual. Applicable policy language supersedes it. Information contained in this excerpt is intended to provide a brief overview of the coverages provided for reference purposes only. It is not intended to provide all policy exclusions, limitations, and conditions. --- - Published: 2022-11-16 - Modified: 2025-06-17 - URL: https://nreig.com/is-it-covered-aluminum-wires/ - Categories: Insurance Education, Is It Covered? - Tags: electrical, Is It Covered? Many people simply don’t know their policy may contain an exclusion of coverage when a fire results from the use of aluminum wiring. However, many homes being purchased today as investment properties were built during a time when aluminum wiring was widely used. It's estimated that between 1. 5 to 2 million single-family homes, mobile homes, and multi-family dwellings were completely wired with aluminum. This number doesn’t even include properties that were partially wired with aluminum because of renovations, alterations, or additions. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What makes aluminum wiring dangerous? Aluminum wires are larger, softer, and more brittle than copper, leading to poorer connections and connection failures. Aluminum’s oxidation process also creates a surface coating with high electrical resistance. That resistance is one factor in creating excess heat buildup in the connection. It is this breakdown of the connections at outlets, light switches, and other junctions that can create enough heat to start a fire. A study done by the U. S. Consumer Product Safety Commission (CPSC) revealed that “homes wired with aluminum wire manufactured before 1972 are 55 times more likely to have one or more connections reach 'Fire Hazard Conditions' than a home wired with copper. ” A typical home can have 200 or more connections, exponentially increasing the risk of fire. How can I tell if my property has aluminum wiring? Aluminum wiring was widely used in the mid-1960s through mid-1970s to reduce construction costs when the price of copper suddenly escalated. If your property was built or remodeled between 1965 and 1973, you are more likely to have aluminum wiring. Your electrical system will also be labeled. Cables with aluminum conductors will have “Al” or “Aluminum” marked on one side of the cable jacket every few feet along its length. You may also find markings that read “CU-clad” or “Copper-clad” which means the cable uses copper-coated aluminum wire. If my property has aluminum wiring is there a way to make it safer? Yes, there are several ways you can upgrade a system that uses aluminum wiring. The best of the four discussed here is to upgrade the electrical service to all copper. For some homes with larger square footage, some may feel replacing the entire system is cost-prohibitive. However, it is the most effective way of knowing that all connections have been remedied. One common method is called “pig-tailing. ” This method involves splicing short pieces of solid copper wire to the end of the aluminum wire. The copper pieces are then used to make connections with the outlet, light switch, etc. Two other methods recognized by the CPSC to provide a “complete and permanent” repair are the AlumiConn and COPALUM methods. The COPALUM method uses a proprietary crimp-on connector to join the copper wire to the aluminum wire. The dies and tools are only made available to electricians who receive training from the manufacturer, so if you hire someone who uses this method, ask to see their credentials. The AlumiConn method uses a lug-style connector that can be used in both residential and commercial applications. There are no special tools required to complete the connection and repair process; however, you should always seek help from a licensed and insured electrician when seeking to remedy any wiring issue. Can I still get coverage if my property has aluminum wiring? Some insurance companies are willing to insure a property if the aluminum wiring is “corrected” through “pig-tailing” or the AlumiConn or COPALUM methods. Others, however, may not want to insure a property that has aluminum wiring as any part of the property’s electrical system. As each insurer’s stance on aluminum wiring can vary, always check with the agent about this specific detail before insuring your property. If for some reason they don’t ask you if your property has aluminum and you know that it does, be upfront during the application process. Having to shop around a bit is much less of a hassle than having a fire and not having the damage covered. What does the technical lingo for this exclusion look like in my policy? Sample policy language may look like this: “We will not pay for the loss or damage caused directly or indirectly by or resulting from aluminum wiring. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. This exclusion applies whether or not the loss event results in widespread damage or affects a substantial area. But, we will pay for loss or damage to Covered Property resulting from a fire caused by aluminum wiring if, prior to the fire causing the loss or damage, the aluminum wiring was remediated by a licensed electrician using the AlumiConn or Copalum connector methods; and all such remediation, including modifications and additions to installed wiring, was completed, inspected and approved and in compliance with all applicable local codes and laws. ” Or, if your policy excludes coverage for properties with electrical systems that contain aluminum it may read: “Any location at which the electrical wiring is wholly or partially aluminum is excluded. ” *As insurance policies may vary, please check your own policy for language specific to your covered property. How much can this type of damage cost me? Fire losses can vary from a few hundred dollars to a total loss of the property. They are among the top five most frequent losses for investment property owners and typically the most costly. If you own a multi-unit property, adjacent units could also become “casualties... --- - Published: 2022-11-16 - Modified: 2023-06-26 - URL: https://nreig.com/not-covered-snow-ice-sleet/ - Categories: Insurance Education, Is It Covered?, Seasonal Tips, Weather Events, Winter, Winter Storms - Tags: ice, Is It Covered?, snow, weather Did you know that damage from the weight of snow, ice, or sleet is only covered under certain policy formats? For those who invest in more northern or mountainous areas, it is important to know which type of coverage you will need for winter storms. Learn how to protect yourself from these winter perils and find out which coverage is best for protecting your property from snow, ice, and sleet. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! Does My Insurance Cover Snow Damage? The Basic, Broad, and Special Forms on which property policies are written offer different levels of coverage. Basic and Broad Forms are “named peril” policies, meaning perils must be listed within the policy to be covered. Special Form is written on an “open perils” basis, meaning that unless that peril is excluded from the policy, coverage is included. Damage from the Weight of Snow, Ice, or Sleet is not covered under the Basic Form, but only under the Broad and Special Form formats. Exceptions to Weight of Snow, Ice, or Sleet Coverage Even if you have coverage for Weight of Snow, Ice, or Sleet, that coverage still does not typically extend to certain items. Stipulations of the coverage may look like this: “This does not include loss to awnings, canopies, fences, pavements, patios, swimming pools, foundations, retaining walls, bulkheads, piers, wharves or docks when such loss is caused by freezing, thawing or by the pressure of the weight of ice or water, whether driven by wind or not. ” How Much Snow or Ice is too Much for Your Roof to Bear? Unless the roof structure is damaged or decayed, most residential roofs can potentially support up to 20 lbs. per square foot of snow before they become stressed. Ice and snow tend to more readily accumulate on low slopes and flat roofs over porches or parts of the home that are next to a taller section of the house. Just two feet of old snow and two feet of new snow could weigh as much as 60 lbs. per square foot, which is way beyond the typical snow load capacity of most roofs. Keep in mind the closer it is to freezing, the more dangerous the snow on your roof becomes as these “higher” temperatures typically produce wetter, heavier snow. Why Do I Need to be Concerned about Ice Dams? Ice dams are a common winter hazard. Ice dams form when snow on the surface of the roof melts and then quickly refreezes. This can put a heavier load on your roof decking and trusses and can also cause water to seep in between poorly constructed soffits. This ice buildup can cause roofs to sag and may even cause a collapse. Is There a Way to Add Coverage for Weight of Snow, Ice, or Sleet? And, Does it Cost Extra? Yes, you can make sure you have coverage for the Weight of Snow, Ice, or Sleet by purchasing Broad or Special Form coverage. These two forms do cost more than Basic Form coverage, but when you consider how many more perils are insured, it’s easy to understand the difference in pricing. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: “When Basic is shown in the Declarations, Covered Causes of Loss means the following... Windstorm or Hail, but not including: Frost or cold weather; Ice (other than hail), snow or sleet, whether driven by wind or not” As insurance policies may vary, please check your own policy for language specific to your covered property. How Much Can This Type of Damage Cost Me? Losses resulting from the Weight of Snow, Ice, or Sleet can vary from a few hundred dollars to tens of thousands depending upon the extent of the water intrusion or collapse. Prolonged moisture can also cause catastrophic mold damage if not attended to within 24-48 hours. If you own a multi-unit property, adjacent units could also become casualties. Lastly, a tenant or one of their guests could be seriously injured by a collapse which could lead to long-term medical bills. The falling materials could even kill someone. What Can I Do to Protect Myself from Snow Damage? First, know what is in your policy: Read the sections of your insurance policy that address Weight of Snow, Ice, or Sleet coverage. It is important to know both what you are and are not covered for. If you don’t understand your coverage or have questions, don’t hesitate to ask your agent, who will be happy to help you! Remove snow to prevent a roof collapse: Since the weight of snow can vary depending upon the amount of water it contains, play it safe. You may want to remove the snow at two feet if you have a newer, pitched roof that is in decent shape. If your roof is older, your property has a flat porch roof or if you own a manufactured home, you’ll want to be even more conservative. In those cases, you may want to use 12 inches as your cue for snow removal. If you can’t safely remove the snow with removal tools from the ground, it’s best to call in a professional roof snow removal service. Make sure they are properly licensed and insured! Insulate your roof: Ice dams can be prevented. The key is to make sure you have a well-insulated attic. This means sealing any air leaks, properly installing correctly-rated insulation, and accurately venting your roof. These steps can help encourage air movement... --- - Published: 2022-10-25 - Modified: 2023-10-24 - URL: https://nreig.com/is-it-covered-your-responsibilities-as-an-insured/ - Categories: Insurance Education, Is It Covered? - Tags: insurance coverage, landlord It is a common misconception that insurance policies only include information regarding what you are covered for in the event of a loss. Your policy does detail the types of losses your carrier will reimburse you for and lists any excluded perils. But it also details the "duties of the insured" - responsibilities you take on as a result of the contract. The duties of the insured are to protect the property from unnecessary losses, implement Protective Safeguards, and cooperate with the insurer during the claims process. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Happens if I Don’t Fulfill the Duties of the Insured? As mentioned earlier, the duties of the insured are to cooperate with your insurer during the claims process, protect the property from unnecessary losses, and implement protective safeguards. Failure to do so can result in your claim denial when you might have otherwise had coverage. Not cooperating with your insurance company at any other time during your business relationship may result in rate increases, non-renewal, or even cancellation of your coverage. What is a Protective Safeguard? Protective safeguards are conditions your property must meet for coverage to be available in the event of a loss. Without them, you may not have coverage for any damage associated with their absence. Two common examples are: to have working smoke detectors in each unit, or to have vacant properties boarded and secured. What Does the “Duties in the Event of a Loss or Damage” Section Include? This section in your policy lists what is expected of you in case of a loss at your property and during the claims process. Is There a Time Limit to Submit a Claim? Yes, most insurance policies require you to report a loss promptly, generally within 60 days. Report any damage at your property to your insurer immediately if you intend to file a claim, even if you don't know all the details about a loss right away (as is often the case when someone is injured). Timely reporting of a loss can lessen the risk of additional damage at the property. And it helps the claims process go more smoothly for all parties. Small details can become crucial to the fair settlement of a loss and can be easily lost if too much time goes by before they are reported. What Does the Technical Lingo for These Requirements Look Like in My policy? Sample policy language may look like this: Protective Safeguards “As a condition of this insurance, you are required to maintain the protective devices or services listed in the Schedule above: “P-9”: Operable smoke detectors in each unit. ” Duties in the Event of a Loss or Damage “You must see that the following are done in the event of loss or damage to Covered Property: Notify the police if a law may have been broken. Give us prompt notice of the loss or damage. Include a description of the property involved. As soon as possible, give us a description of how, when and where the loss or damage occurred. Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed. As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. Also, permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. Cooperate with us in the investigation or settlement of the claim. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured’s books and records. In the event of an examination, an insured’s answers must be signed. ” Timely Reporting of Losses “Discovery: It is understood and agreed by the Insured that, in the event of any occurrence which may result in loss, damage, injury, expense or claim for which the Insurer may become liable under this policy, notice shall be immediately given to said Insurer. Furthermore, the Insurer is not liable, under any circumstances for any loss, damage, injury, expense or claim of whatever nature, which is insured by this policy; unless any and every notice of claim, pleading and paper of any kind relating to such occurrence shall be given to the Insurer within 60 days of the date of loss or when the condition becomes known to the Insured. ” As insurance policies may vary, please check your own policy for language specific to your covered property. Do I Really Need to Read My Entire Policy? To fully understand the policy, including the duties of the insured, you should read the entire insurance contract. This way, you won’t miss details... --- - Published: 2022-10-04 - Modified: 2023-06-26 - URL: https://nreig.com/protect-yourself-from-post-storm-scammers/ - Categories: Weather Events - Tags: hurricane Our thoughts are with those recovering from the impact of Hurricane Ian. Rest assured, our team is working diligently to make the claims process as easy as possible for you if you have locations that sustained significant damage. Sadly, some unethical individuals out there wish to take advantage of those who have just suffered a loss. Service providers might try to exploit your difficult situation by inflating your repair costs or pressuring you to sign a contract you have not read. Don't fall for these contractor scams. Consider the following when hiring service providers: Be present when someone inspects your property. Companies may try to take advantage of you and your insurance company by causing additional damage to increase the repair cost. Anyone who offers to get you more money for your insurance claim warrants additional caution. Reputable contractors will NOT solicit door-to-door immediately following a storm. Written estimates should include an itemized list of all services and associated costs, including the hours of labor needed to complete the job. Please note: Your signature is NOT required to receive an estimate. Some scammers may use this tactic to trap you into signing a contract. A bid that is substantially lower than other bids is usually missing something significant. Carefully review all bids to ensure there aren’t items missing or unnecessary items added to the scope of work. High-pressure tactics can be a red flag. Don’t let the heightened stress following a loss cause you to rush the process of hiring a quality service provider. A formal repair contract should include approximate start/completion dates and payment procedures. It also should guarantee that the contractor will secure any necessary permits. Never pay a repair bill in full until the work is completed according to your contract with the provider. Most importantly, always hire an established, licensed, and fully insured company. Check the references they give you. Reputable contractors should be able to provide you with their certificate of liability insurance and have a business license number which can be verified here (in Florida). Taking these precautions can help you avoid becoming a victim of post-storm contractor scams. If you have any questions about your coverage, don’t hesitate to contact your Client Service Advisor. --- - Published: 2022-09-26 - Modified: 2023-08-07 - URL: https://nreig.com/vacant-property-risks-fall/ - Categories: Fall, Investing Tips, Seasonal Tips - Tags: fall, hurricane, trees, Vacant Property Insurance Autumn is a signal to start wrapping up outdoor rehab work, a time to start “battening down the hatches” for colder weather, or for some who invest in areas with warmer climates, a time to prepare for potential hurricanes. As fall weather rolls in, other non-weather-related threats like theft, vandalism, and fires also tend to increase in frequency. Why is that, and what can you do to diminish vacant property risks as the year winds down? Fixer Upper Properties When flipping a home, you have to be extra cautious of vacant property risks. Large dumpsters, construction vehicles, and more all make it very obvious that the home is empty and vulnerable and the cold weather brings even more risks. General Contractors Your General Contractor needs to be prepared for the conditions that colder weather brings. Outdoor work can become more dangerous – you don’t want a roofer working in freezing ice and snow conditions if you can avoid it. Here’s where it becomes really important to hire contractors that are properly licensed and insured. In addition to helping any injured crew member get proper medical care, the company or sole proprietor will also have the proper protection to shield their business from undue financial harm that could put finishing your project in jeopardy. Burst Pipes If the water is turned on, you may be in danger of frozen pipes and the water damage that follows if one bursts. We’ve seen too many investors have to restart the rehab process on a just-completed house because they wanted to make sure they could demonstrate a flushing toilet or turn on a faucet for a potential buyer. The best practice is to shut off the water at the street and drain the system whenever a property is vacant. If you must have access to water, you can instead use the house’s main shut-off; also keep the heat to at least 55 degrees and insulate any pipes that are on exterior walls. Squatters If you have paused your work or have purchased a property and don’t intend to start the project until spring, this could happen to you. People need shelter, and it is not uncommon to see a property burn because someone taking refuge there lit a fire to stay warm. We have also seen houses that have been overtaken by “refugees” of the neighborhood who took advantage of the vacancy to start their own narcotic businesses. Theft It’s so commonplace for vacant properties, I hardly feel the need to make you aware of the risk of theft or vandalism. You all know what they are after too: copper, furnaces, fixtures, uninstalled materials, and your contractors’ tools. Some criminals like to break in to vandalize, which can be just as costly as stolen goods. Hurricane Prone Properties September is the most active month for hurricanes in the Atlantic. Harvey and Irma have had devastating impacts on the Gulf States - Florida, Georgia, and South Carolina. While some people have lived through a hurricane before, the magnitude of these storms has made it challenging to be totally prepared for all the after-effects - damage that displaces tenants and causes a multitude of occupied homes to go vacant. Looting In times of great distress, like after a hurricane, some people may go after basic necessities like toiletries, food, and water, while others will still go after anything of value, and we’ve unfortunately seen some of that with these storms. This could be items like stoves and fridges or even items your renters own. Insurance Coverage Many homeowners and tenants have been displaced by the recent storms and some carriers are not willing to insure vacant homes. Though there are carriers who are investor-friendly or write coverage specifically for vacant homes, some standard market insurers are not as keen on the risk. As such, if you have your property insured with a company that usually specializes in covering owner-occupied locations, you may have to pursue replacement coverage with someone else when a tenant moves out. In addition, many people are not aware that Named Storm and Flood coverage are not automatically included in the majority of property policies. Coverage is usually obtained separately for an additional cost, so it’s important to become familiar with how these coverages work, especially if you are investing out-of-state. Rehabs Rehabs may take longer after a disaster. Shortages of materials and skilled labor can happen when many people are immediately in need of the same help putting their properties back together. You may just have to get patient or really creative so you can keep your projects from getting too far behind. If you have delays, be sure to take extra security measures to keep unwanted guests out. How to Secure Vacant Properties The following tips should help investors deter unwanted visitors while the property is vacant. Vacant Property Signs You Should Avoid Unkempt yard Overflowing mail Darkness All three of these signal that no one is home and your investment is ripe for the picking. Be sure the yard is mowed and trees and bushes are tamed. If there is still mail being delivered (even if they are junk ads), be sure it is picked up on a regular basis. Also, make sure the house is well-lit, especially the entryways. Intruders are less likely to prey on your property if they sense they may get caught in the act of breaking in. How to Protect a Vacant Property The first line of defense: Deterrence – Make sure your property isn’t the easiest target on the block. Locks & Door Reinforcement – Doors & windows should be locked with sturdy hardware and long screws. Neighbors – Good relationships with neighbors allow you to have “eyes and ears” around your property. Inspections – Drive by the property regularly to make sure the house is still secure. Yard Maintenance – Overgrown shrubbery can give thieves and vandals a place to hide, so keep it nice and neat! Lighting – Place motion-detector lights at... --- - Published: 2022-09-08 - Modified: 2023-05-01 - URL: https://nreig.com/is-it-covered-mold-mildew-fungus/ - Categories: Floods, Insurance Education, Is It Covered?, Seasonal Tips, Spring, Water, Weather Events - Tags: fungus, mold Insurance coverage for Mold, Mildew, and Fungus is usually either completely excluded or may be very limited depending upon the policy. Many people assume that they will have at least some coverage for Mold when it is more often the case that Mold, Mildew, fungi, and their bi-products are excluded. As policies vary, some may only mention “mold” while others may include terms like “organic pathogens”, “mycotoxins,” or may reference the type of fungi by their scientific name such as Penicillium. Some may also include wet & dry rot and bacteria in their exclusions while others may not even mention mold specifically. As some courts treat mold as a “pollutant”, mold may be excluded if a policy has an “absolute pollution exclusion. ” Because of these variations, it is important to become familiar with how your policy treats mold and other pathogens. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Type of Damage is Excluded? Typically, both damages to the property itself and any bodily injuries caused by the presence of Mold, Mildew, or Fungus are excluded. With the presence of mold, you will need to address any damage done to sheetrock, insulation and possibly framing. Along with this damage, your tenants’ health could be affected by the presence of mold (usually respiratory issues/allergies) and therefore there may be doctor bills from treatment or the costs of relocating your tenants. Do Any Federal or State Environmental Laws Require a Building to be Mold-Free? No. However, state laws often require landlords to provide habitable housing to tenants. If a landlord does not remediate a mold problem after written notice from his/her tenant, that tenant may have a legal mold claim against the landlord for compromising his health and damaging his personal possessions. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: “Microorganism Exclusion (Absolute)... this Policy does not insure any loss, damage, claim, cost, expense or other sum directly or indirectly arising out of or relating to: Mold, mildew, fungus, spores or other microorganism of any type, nature, or description including but not limited to any substance whose presence poses an actual or potential threat to human health... ” *As insurance policies may vary, please check your own policy for language specific to your covered property. What Can This Type of Damage Cost Me? A variety of expenses can build up when a person becomes ill from a potential case of toxic mold. Exposure to mold can lead to symptoms ranging from allergic reactions, to intestinal damage, to ruptured blood vessels in the lungs, and in extreme cases, they may even increase susceptibility to cancer. Mold cases can be complicated and expensive cases to try and often the remediation costs are high as well. Not to mention the time in which a property may go vacant because it is uninhabitable for renters. Lost time, cash flow issues and repair expenses can all come into play when you are dealing with mold, mildew, and fungus. What Can I Do to Protect Myself from Mold, Mildew, and Fungus? Controlling moisture is the key to stopping mold growth. Here are some tips that can help reduce moisture, humidity, and condensation on your property. If your property just flooded, you can also read “Reduce Your Risk of Mold after a Flood. " For You, the Property Owner or Manager: Clean and repair gutters regularly Make sure water runs away from your foundation to help prevent a moldy basement or crawlspace Maintain and clean AC and HVAC systems on a regular basis Keep indoor humidity low – ideally, 40-50% relative humidity which can be measured with a moisture or humidity meter available at your local hardware store Vent appliances that produce moisture (clothes dryers, stoves, bathroom fans) to the outside Install dehumidifiers where needed, and put them to use especially during more humid months Add mold inhibitors to paints before application Do not carpet bathrooms and basements Fix any leaks promptly Tips for Your Tenants: Be sure tenants have an emergency number to call if they discover a water leak Inform tenants about mold-producing conditions such as steamy showers Run the bathroom fan at least one hour after every bath or shower and their kitchen fan while cooking Open the windows on nice days to ventilate the house or apartment Keep beds, couches, and chairs away from walls Do not over-pack storage areas such as closets, cabinets, or the attic Give them the EPA’s “Brief Guide to Mold, Moisture, and Your Home” – a quick read that will help them with the basics of mold prevention. (Download it for free at http://www. epa. gov/mold/pdfs/moldguide. pdf. ) Can I Test for Mold? Yes, you can! My Mold Detective is one of several at-home mold testing kits that delivers professional results for a reasonable cost. Note: This piece is not to be construed as contractual. Applicable policy language supersedes it. Information contained in this excerpt is intended to provide a brief overview of the coverages provided for reference purposes only. It is not intended to provide all policy exclusions, limitations, and conditions. --- - Published: 2022-08-30 - Modified: 2025-06-17 - URL: https://nreig.com/avoiding-electrical-fires/ - Categories: Fire, Insurance Education - Tags: electrical, electrical fire, fire Aside from tornadoes, fires tend to be the most sudden, destructive, and deadly losses we see in claims. Even those who are aware of basic fire safety measures often forget about the risk of electrical fires. The first step in loss prevention is being aware of what could happen. The Electrical Safety Foundation International (ESFI) presents the following facts and statistics on home electrical fires: Electrical distribution systems are the third leading cause of home structure fires, behind cooking and heating equipment. Home electrical fires account for an estimated 51,000 fires each year, nearly 500 deaths, more than 1,400 injuries, and $1. 3 billion in property damage. Each year, arcing faults are responsible for starting more than 28,000 home fires, killing and injuring hundreds of people, and causing over $700 million in property damage. Property damage can be repaired, and a home can be rebuilt. However, if you are proactive, you may save yourself from these losses and your tenants from severe injuries or even death. Electrical Systems Knob-and-Tube Wiring Knob-and-Tube (K&T) wiring was the standard method of electrical wiring in North America from 1880 to the 1940s. This type of wiring consists of insulated copper conductors that pass through stud drill holes via porcelain insulating tubes. The wires are supported by nailed-down porcelain knobs. Problems Associated with Knob-and-Tube Wiring This system is outdated and can be a major safety hazard. In fact, many insurance companies will not insure homes that have K&T wiring. The International Association of Certified Home Inspectors (InterNACHI) notes the following common issues: The system lacks a grounding conductor - Grounding conductors reduce the chance of electrical fire and damage to sensitive equipment. Wiring insulation is a fire hazard - Older systems contain insulation with additives that can oxidize copper. This insulation was made with varnish and fiber materials that are susceptible to deterioration. The bending of the wires may cause the insulation to crack and peel away. Building insulation is a fire hazard - K&T wiring was designed to dissipate heat into free air, and building insulation disturbs this process. Insulation around K&T wires will cause heat to build up, creating a fire hazard. Unsafe modifications are very common with K&T wiring - Part of the reason for this is that the method is so old that more opportunity has existed for improper modifications. In an effort to decrease the risks associated with K&T wiring, amateurs will often incorrectly splice the existing wires with modern wiring. Advice for those with Knob-and-Tube Wiring If your property has K&T wiring, you should have the system evaluated by a qualified electrician. If modifications were made, they will be able to confirm it was done correctly. You or an electrician should carefully remove any building insulation surrounding K&T wires. Proper maintenance is crucial for any electrical system. Any wiring or wiring insulation that is cracked or bent should be replaced as soon as possible. K&T wiring should not, under any circumstances, be used in kitchens, laundry rooms, or bathrooms. The amperage that appliances in these rooms require is substantial. As noted previously, K&T wiring is not grounded and therefore, cannot sustain this kind of usage. You should install GFCI outlets within six feet of sinks, washing machines, and water heaters. GFCI (Ground Fault Circuit Interrupter) plugs monitor the surge of electrical current moving through a circuit. If a circuit or fuse is blown, these will reset. These outlets also detect moisture and shut the current off to prevent shocks and fire hazards. Aluminum Wiring Aluminum wiring was a popular electrical system used in homebuilding in the ’60s and ’70s. Due to a shortage of copper, aluminum was a cheaper option while still being an effective way to transmit electricity. Almost all aluminum wiring was installed wrapped in Romex and with no distinction from copper wiring. To identify the type of wire in your home, look at the printed markings on the outer jacket of your electric cables (visible in unfinished basements, attics, or garages). Cables with aluminum conductors will have “Al” or “Aluminum” marked on one side of the jacket. While aluminum can conduct electricity, it does not do so as well as copper. Connections can overheat, become loose, and create fire hazards. Problems Associated with Aluminum Wiring According to the Consumer Product Safety Commission (CPSC), homes wired with an aluminum wire that was manufactured before 1972 are 55 times more likely to have one or more connections become a fire hazard than a home wired with copper. Neglected connections in outlets, switches, and light fixtures become increasingly dangerous as time passes. According to InterNACHI, the following qualities of aluminum make it a poor conductor when used for wiring as compared to other materials: Higher electrical resistance - Aluminum has a high resistance to the flow of electrical current compared to copper. Given the same amperage, aluminum conductors must be of a larger diameter than would be required by copper conductors. Galvanic corrosion and oxidation - When aluminum is exposed to moisture it will undergo galvanic corrosion when it comes into contact with dissimilar metals. Aluminum wire is more easily oxidized compared to copper wiring. As time passes, oxidation can deteriorate connections and present a fire hazard. Less ductile - Aluminum wiring breaks down more easily when subjected to bending and other forms of movement than more ductile copper wiring. Aluminum wire will break down internally and increasingly resist electrical current, leading to a buildup of excessive heat. High rate of thermal expansion and contraction - Aluminum expands and contracts based on temperature much more than copper. This process will cause connections between the wire and the device to degrade in effectiveness and durability. Aluminum wires should never be inserted into the “stab,” “bayonet,” or “push-in” terminations on many light switches and outlets. Malleability - Aluminum is extremely sensitive to compression. For instance, if a screw has been over-tightened on aluminum wiring, the wire will continue to deform in the same way, even after the tightening has been undone.... --- - Published: 2022-08-30 - Modified: 2025-06-26 - URL: https://nreig.com/insuring-creative-investment-strategies/ - Categories: Coverage Options, Insurance Education - Tags: land contract, non-performing notes, sandwich lease, subject to While rental, renovation, and new construction are the most common types of investments we cover, NREIG is capable of insuring more creative investment strategies as well. Let’s look at some of these popular strategies and how we insure them the right way. Lender-Placed Insurance Our advice to private money and hard money lenders in the real estate investment space is to force-place insurance on a property as soon as the borrower’s coverage is cancelled or is determined to be insufficient. In this scenario, the lender purchases coverage for their interest in the property. The lender then passes that cost on to the borrower. The purchased coverage should match the outstanding loan amount. Should a loss occur when the borrower’s coverage is not in force, the lender is still protected. Subject To A Subject To deal involves an investor purchasing a property subject to the existing mortgage. The investor takes over payments and, as they are now responsible for this property, needs to secure insurance. NREIG is the only agency able to insure these types of properties the right way. The named insured for the coverage is the investor who purchased the loan. The mortgage company is listed as the mortgagee and will show up on coverage documents. This is an important step to make sure the loan is not called due. We recommend never allowing the seller of your Subject To properties to keep their homeowners coverage in force. The seller is already under financial hardship. If a loss happens, the seller receives the claims check. They could take the money and run, and now you’re left with an uninhabitable building and no claim money coming back to you. NREIG does add the seller as an Additional Interest on the liability Certificate of Insurance. Should there be a liability loss where the buyer and seller are named in a lawsuit, the seller would have coverage. We do not add the seller as an Additional Insured on the property coverage or list them as a named insured on the property policy. If you suffer a loss and their name is on the policy, it is also on the claim check. We also don’t want you to have a check you are unable to cash if you can’t reach the seller to get it signed. Non-Performing Notes Right now, investors are able to purchase a non-performing note for about 10-50% of its value. This strategy can be very appetizing for investors to either flip the property or find a way to turn it into a performing note. NREIG makes sure that you, the note buyer, are insured while the terms are being reworked or while the home is being foreclosed on. You want to be sure that you are properly insured for anything that you own, including liability and property coverage. Insurance should cover the amount of the note that you purchased. IRAs and Trusts These are locations that are owned by your IRA or Trust as opposed to yourself (individual) or LLC. These locations can be insured on the same or different account as locations owned by other interests but must have their funds separated. NREIG can insure these types of owned locations because we have the ability to separate the billing. Tax Sale When a homeowner or investor of a real estate property reaches a certain point of delinquency in their property taxes, a tax sale of the property occurs. There are two types of sales: Tax Lien and Tax Deed. At a Tax Lien sale, the liens on the home are auctioned off to the highest bidder. The bidder who purchases the liens has the legal right to demand lien collection, along with interest, from the property owner or homeowner. If the owner is unable to pay the liens due, the bidder who purchased the liens can have the property foreclosed on. At a Tax Deed sale, the entire property is sold, including all unpaid taxes, at an auction. Some investors purchase these properties sight unseen. Oftentimes that purchase comes with additional risk, so you want that property to be insured as soon as you purchase it at auction. Although it is possible that the property is bought back by the previous owner or seller, you should cover your interest by purchasing insurance. Land Contract Here, the buyer finances the property by making installment payments to you, the seller. NREIG insures these transactions throughout the entirety of the land contract. You maintain the title to the home, and therefore should be the insured party, until the loan is paid off. The buyer can be listed as Additional Insured on the policy. Once the title moves to the buyer, they need to purchase their own policy. Contract for Deed This transaction structure is very similar to that explained above, the buyer agrees to pay the purchase price of the property in monthly installments. The buyer takes possession of the property while the seller retains the legal title to the property until the contract is fulfilled. Typically, the buyer is responsible for paying for insurance. Although, it is still in the seller’s name, with the buyer as an Additional Insured. Sandwich Lease This is a three-party deal in which the tenant is leasing a property from an agent or property manager, who is leasing the property from the owner. NREIG is able to insure the property owner, making sure they are the named insured. The middleman (agent/PM) can only be listed as an Additional Insured on the Certificate of Liability. They do not have interest in the property, and therefore cannot insure it in their name. If it were to burn down, they would not be out except their income from the tenant’s lease. In some instances, the middleman may be managing the property as a short-term rental. If this is the case, they should get in touch with an insurance agent who can provide them with a General Liability policy for their business operations. Quitclaim Deed These are quick real... --- - Published: 2022-08-09 - Modified: 2023-03-29 - URL: https://nreig.com/is-it-covered-flood/ - Categories: Floods, Insurance Education, Is It Covered?, Seasonal Tips, Spring, Water, Weather Events - Tags: flood coverage, flood insurance, flooding, hurricane, sewer back-up, water The question is always, “When is it a flood? ” Because we deem various types of water events “floods” even if they do not meet the insurance definition, it can become confusing to know where your coverage lies. In addition, many people are not aware that Flood coverage must be purchased separately from their Property or Liability policies. Add yet another complication of water damage that occurs during a Named Storm like a tropical storm or hurricane and you get an even soggier, wet mess. Is water backing up in your basement? You may say “The basement flooded. ” But did it really, or is that Sewer Backup or Water Damage? And then what about the small stream that seems more like a mud shake in its consistency? Is that Flood? Mudslide? Water Damage? Ugh... definitely “clear as mud! ” Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What is a Flood in Insurance Terms? FEMA defines a flood as a “general and temporary condition of partial or complete inundation of two or more acres and two or more properties of normally dry land. ” In addition, flood damage can only be caused by the “overflow of inland or tidal waters, unusual and rapid accumulation or runoff of surface waters from any source, mudflow, or collapse of land along the shore of a lake or a similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels. ” In other words, a Flood may occur when water from natural sources, such as rivers and lakes, breach banks during heavy rains or when the ground is over-saturated with water and causes the excess to seep through foundations or other vulnerable parts of the structure. How Does Flood Differ From Water Damage in Insurance? Water Damage must be “sudden and accidental” to be covered, such as a pipe bursting or the accidental overflow of a bathtub. In colder seasons if freezing causes a pipe to burst, one must certify that they have done their best to maintain heat in the building or have fully drained the system and shut off the water supply in order for coverage to be available for the ensuing water damage. Rain that damages the interior of a property after the roof is compromised from a storm also falls under the category of Water Damage. It should be noted that Water Damage coverage is only available under the Special Form policy format. So many things to be mindful of when protecting your property from water! What is Sewer Backup? Sewer Backup is another common exclusion in property policies and is defined as “water that backs up or overflows from a sewer, drain or sump. ” (ISO) Drains and sewers can back up during storms. So, what you or I call a “flooded basement” may or may not technically be “flooded” when it comes to insurance – it all depends upon how the water enters the dwelling. That stated, investors will want to make sure that any drainage systems in basements are well-maintained and that sump pumps are regularly tested to help avoid water damage from Sewer Backup. Is a Storm Surge from a Named Storm Considered Flooding? If you are in an area where your property policy excludes coverage for Named Storm, such as in Tier 1 or Tier 2, you will need to purchase additional coverage if you would like to be covered when the next tropical storm or hurricane rolls through. Though it may not happen frequently, catastrophic coverage like Named Storm can be vitally important as the damage can be some of, if not the costliest property damage you may experience. To put it simply, you could lose your entire investment. Flooding resulting from a storm surge triggered by a Named Storm would only be covered with Flood coverage. How Do I Add Coverage for Floods? Your agent can typically write a Flood policy for your property. It may be written through the National Flood Insurance Program (NFIP) or a private insurer, but you will always have a separate Flood limit and Flood deductible. Adding Flood does typically increase the premium significantly as most catastrophic coverages (Named Storm, Earthquake, etc. ) do. The NFIP has designated specific flood zones that will impact the rate depending upon the specific flood risk at that site. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: “We will not pay for the loss or damage caused directly or indirectly by... Water: Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); Mudslide or mudflow; Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump, or related equipment; Water under the ground surface pressing on, or flowing or seeping through: Foundations, walls, floors, or paved surfaces; Basements, whether paved or not; or Doors, windows, or other openings; or Waterborne material carried or otherwise moved by any of the water referred to in Paragraphs 1, 2, or 3, or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs 1 through 4, is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, seawall, or other boundary... --- - Published: 2022-08-04 - Modified: 2023-02-27 - URL: https://nreig.com/is-it-covered-liability-for-non-covered-items/ - Categories: Coverage Options, Insurance Education, Is It Covered? - Tags: liability insurance For the most part, if an item is excluded from the Property Coverage on your property, it is likely not covered in the Liability Coverage on your property either. Bear in mind while your Property Coverage protects damage that happens to your investment property itself, (i. e. the physical building), your Liability Coverage protects your financial well-being associated with that property (i. e. if your negligence at that property were to harm someone else). Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Type of Damage is Excluded? As an example, mold, though it may damage the building itself, may also cause health issues for your tenants. If excluded in your Property Coverage, any repairs to the physical structure would not be covered, like replacing sheetrock. In addition, the “bodily injury” resulting from mold may also be excluded from your Liability Coverage. For example, if your tenant becomes sick from toxic mold, your Liability Coverage may not pay for the doctor bills from that tenant’s illness whether or not you are “negligent” in having allowed them to live in that toxic environment or made attempts to correct a hazardous living condition. Are There Any Exceptions? Yes. For example, standard U. S. Property Coverage doesn’t pay for items that would be considered routine maintenance because those items are excluded under “wear-and-tear”. Remember, the purpose of insurance isn’t to replace items that wear out under normal circumstances over time. Insurance is meant to step in to help with unforeseen, unexpected, sudden events. That stated, if you are negligent in maintaining items around the property, a set of stairs for example, and someone is injured due to that negligence, there may be coverage available for the event through your Liability Coverage. What Does the Technical Lingo for This Exclusion Look Like in My Policy? It is possible for the language to be the exact same for both the Property and Liability Coverage sections. While the exclusion below deals specifically with mold, it is just one of several examples that could be used. Sample policy language may look like this: “Microorganism Exclusion (Absolute)... this Policy does not insure any loss, damage, claim, cost, expense or other sum directly or indirectly arising out of or relating to: Mold, mildew, fungus, spores or other microorganism of any type, nature, or description including but not limited to any substance whose presence poses an actual or potential threat to human health. ” As insurance policies may vary, please check your own policy for language specific to your covered property. What Can this Type of Damage Cost Me? Injuries from slip and fall accidents are both the most common type of liability claim and also the most common basis for accusations in lawsuits in terms of “bodily injury”. Depending upon the severity, a slip and fall could equate to a sprained ankle, to a complex back injury that increases in severity over time, to death. There is a reason that the lowest limit for Liability Coverage is generally $100,000, while most investors should keep a limit of at least $1 Million per Occurrence. If an injury or property damage you cause isn’t covered by insurance, it could easily cost you your business, not to mention the impact that it could also have on your personal financial or emotional well-being. What Can I Do to Protect Myself from Liability Issues? Being proactive when it comes to routine maintenance and documenting those tasks are two of the most important things you can do to protect yourself from liability issues. You will want to stay on top of repairs before they become a hazard to your tenant or any passersby. A couple of very easy tasks to keep up with are the changing of furnace filters and testing of smoke and Carbon Monoxide alarm batteries, for example. If you check on your properties regularly, you will be less likely to be surprised by emergency repair requests and may help your tenants and their guests avoid an injury. --- - Published: 2022-08-04 - Modified: 2023-09-14 - URL: https://nreig.com/wildfires-hurricanes-tornadoes-are-in-season-is-your-property-ready-too/ - Categories: Hurricanes & Storm Surges, Seasonal Tips, Summer, Tornadoes & Thunderstorms, Weather Events, Wildfires - Tags: natural disaster preparation, tornado, tornado preparation, wildfire, wildfire preparation With the ability of catastrophic weather events to spring up and escalate quickly, preparing your properties and tenants well in advance is of the utmost importance. Once they begin there is usually little, if any, time to run for cover. Natural disasters don’t wait on humans to be ready to respond - either you're ready or you’re not. That being said, if you aren’t already prepared for these types of catastrophes then there is no time like the present to get geared up! Heeding the few natural disaster prep tips below from Ready. gov could save you thousands of dollars and may even save a life. Wildfire Preparation Wildfire Season: Wildfires can occur at any time throughout the year, but the potential is always higher during periods with little or no rainfall, which make brush, grass, and trees dry and burn more easily. For many areas, this occurs in summer through fall months, but many western states have a year-round wildfire risk, such as California. High winds can also contribute to spreading the fire. Your community may have a designated wildfire season when the risk is particularly high, so become familiar and take action well in advance. For your property: Create and maintain an area approximately 30 feet away from your property that is free of anything that will burn, such as wood piles, dried leaves, newspapers, brush, and other landscaping that can burn. From 30 feet to 100 feet reduce or replace as much of the most flammable vegetation as possible and prune vegetation, create “fuel breaks,” such as driveways, gravel walkways, and lawns. Work with neighbors to create spaces up to 200 feet around your homes where vegetation is thinned to remove underbrush and tall trees do not touch each other for continuous canopies. Regularly clean the roof and gutters. Connect garden hoses long enough to reach any area of the home and fill garbage cans, tubs, or other large containers with water. For your tenants: Be sure your tenants know the wildfire risk, especially if they are not originally from the area. More Wildfire Tips: https://www. ready. gov/wildfires Hurricane Preparation Hurricane Season: The Atlantic hurricane season runs from June 1 to November 30, with the peak occurring between mid-August and late October. The Eastern Pacific hurricane season begins May 15 and ends November 30. For your property: Trim or remove damaged trees and limbs to keep your tenants and your property safe. Secure loose gutters and downspouts and clear any clogged areas or debris to prevent water damage. Retrofit to secure and reinforce the roof, windows, and doors- including the garage doors. Purchase a portable generator for use during power outages. Remember to keep generators and other alternate power/heat sources outside, at least 20 feet away from windows and doors, and protected from moisture. NEVER try to power the house wiring by plugging a generator into a wall outlet. Consider building a FEMA safe room or ICC 500 storm shelter designed for protection from high-winds and in locations above flooding levels. For your tenants: Tenants should also be advised to prepare to stay in the home if not in an area advised to evacuate. They will need adequate supplies in case they lose power and water for several days and are not able to leave due to flooding or blocked roads. More Hurricane Tips: https://www. ready. gov/hurricanes Tornado Preparation Tornado Season: Tornadoes can strike in any season, but occur most often in the spring and summer months. They can occur at all hours of the day and night, but are most likely to occur between 3 p. m. and 9 p. m. For your property: Extreme windstorms in many parts of the country pose a serious threat to buildings and their occupants. Your residence may be built to code but that does not mean it can withstand winds from extreme events such as tornadoes and major hurricanes. The purpose of a safe room built to FEMA criteria or a storm shelter built to ICC 500 standards is to provide a space where people can seek refuge that provides a high level of protection. You can build a safe room in one of several places in your property. The basement. Atop a concrete slab-on-grade foundation or garage floor. An interior room on the first floor. Safe rooms built below ground level provide the greatest protection, but a safe room built in a first-floor interior room also can provide the necessary protection. Below-ground safe rooms must be designed to avoid accumulating water during the heavy rains that often accompany severe windstorms. To protect its occupants, a safe room must be built to withstand high winds and flying debris, even if the rest of the residence is severely damaged or destroyed. Consider the following when building a safe room: The safe room must be adequately anchored to resist overturning and uplift. The walls, ceiling, and door of the shelter must withstand wind pressure and resist penetration by airborne objects and falling debris. The connections between all parts of the safe room must be strong enough to resist the wind. Sections of either interior or exterior residence walls that are used as walls of the safe room must be separated from the structure of the residence so that damage to the residence will not cause damage to the safe room. For your tenants: Identify safe rooms (built to FEMA criteria or ICC500), storm shelters, or other potential protective locations within the property or inside sturdy buildings near the property, where tenants can go to quickly for safety in the event of a warning or an approaching tornado. For buildings with long-span roofs, open space plans, or many occupants- identify the best available refuge and share those locations with tenants. Advise tenants to be alert to changing weather conditions and look for the following danger signs: Dark, often greenish sky Large hail A large, dark, low-lying cloud (particularly if rotating) Loud roar, similar to a freight train. If you see approaching storms... --- - Published: 2022-07-25 - Modified: 2025-07-07 - URL: https://nreig.com/protecting-your-income-with-loss-of-rents-coverage/ - Categories: Coverage Options, Insurance Education - Tags: basic form, loss of rents, skip rent, special form, tenant protector plan, tpp, water damage How would your businesses and income be affected if your rental property sustained damage to the point that it is no longer habitable for your tenants? As an investor, you have property insurance that may cover the cost of repairs, but what about the rental income you will lose out on in the process? Repairs can take a while, especially with today’s supply chain issues. The NREIG program offers Loss of Rents coverage that can be added as part of your property policy and may cover lost rental income for up to 6 or 12 months (selected when coverage is added). This type of protection is triggered by a covered loss that renders the home uninhabitable while the damage is being repaired. Covered means that the loss is not excluded on your property policy. For example, let’s say you have Special Form coverage, and a burst pipe causes water damage so severe that your tenant must move out of the home while repairs are being made. Since Special Form includes Water Damage, both the repairs and the lost rent may be covered. If you have Basic Form coverage, neither the repairs nor the lost rent would be covered because Water Damage is excluded on Basic Form. It is important to note that Loss of Rents cannot be obtained in the absence of a property loss. Common Confusion Loss of Rents (rental loss insurance) is commonly confused with the Skip Rent component of our Tenant Protector Plan. Skip Rent is different in that it may reimburse you one month’s rent up to $1,000 if your tenant skips out on you midway through their lease or is successfully evicted. This coverage can also be triggered by other types of unexpected vacancies like military deployment and untimely death. To reiterate, Loss of Rents is designed to replace monthly rent if an insured peril hits your rental property and, as a result, tenants must move out of the home. Additionally, Loss of Rents is not covered if the triggering property loss is not covered. Loss of potential future income may not be covered. What does this mean? Let’s say you have a short-term/vacation rental become uninhabitable and repairs are expected to take six months. You could obtain loss of rents for that six-month period, but if you do not advertise the rental to tenants after the six months, you may not be reimbursed. Bookings in place that need to be cancelled due to the repairs may be reimbursable. Similarly, if your rental is damaged and repairs are expected to take six months, but the current tenant’s lease is up in three months, you may only be able to obtain loss of rents for the timeframe of the current lease (three months). If there is proof that the current tenant intends to renew their lease, loss of rents may be covered for the full six months. To learn more or add Loss of Rents coverage to your property policy, contact your CSA, who would be happy to help! --- - Published: 2022-06-30 - Modified: 2025-08-18 - URL: https://nreig.com/nreig-terrorism-coverage-vs-tria/ - Categories: Coverage Options, Insurance Education - Tags: terrorism, Terrorism Risk Insurance Act, terrorist act Prior to the September 11, 2001 attack on the World Trade Center towers and the Pentagon, Terrorism coverage was not a standard exclusion on most insurance policies. The attacks, which caused significant damage, resulted in massive insurance payouts, leading carriers to exclude Terrorism from policies moving forward. Terrorism is an unfortunate reality that can impact anyone without warning. As insurance is all about preparing for the unexpected, it is important to understand your Terrorism Coverage options. What is TRIA? The Terrorism Risk Insurance Act (TRIA) is a United States program enacted following the 9/11 attacks. It creates an insurance offering and provides compensation for certain insured losses resulting from certified acts of terrorism. For TRIA to be "triggered" and claims to be paid out, the following must happen: The Secretary of Treasury must certify that the act caused more than $5,000,000 of damage The Secretary of Treasury must meet with the Secretary of Homeland Security and certify the attack as an Act of Terrorism Unfortunately, this program is not very consistent in the decision of what qualifies as an Act of Terrorism and has yet to ever pay out on any event. While the 2019 El Paso Walmart shooting was certified as an Act of Terrorism, the 2013 Boston Marathon bombings were not. And keep in mind, the damage must exceed $5,000,000 in addition to being certified as an Act of Terrorism. In what situations would you be left uncovered under TRIA? Let's say you owned and rented out a condo in one of the buildings along the route of the Boston Marathon. As a result of the bombing, the condo was damaged and rendered uninhabitable. This damage and loss of income is likely not covered under your property policy. Although Explosion is a covered peril under almost all policies, as an intentional bombing is part of a terrorist act, your insurer can deny your claim under their terrorism exclusion. Unfortunately, because the incident has not met the threshold for a Certified Act of Terrorism, if your coverage is through TRIA, a payout is unlikely. TRIA was designed to cover incidents like 9/11, large scale attacks of mass destruction. In contrast to huge, well-funded foreign organizations, most acts of terrorism or political violence nowadays are small-scale, lone wolf strikes like mass shootings. Our Terrorism Coverage We offer a private terrorism option as an alternative to TRIA. In our program, an Act of Terrorism is defined as an act or series of acts, including the use of force or violence, of any person or group(s) of persons, whether acting along or on behalf of or in connection with any organization(s), committed to political, religious, or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes. Our coverage is a more comprehensive option and does not require the government to issue an Act of Terrorism. Our Terrorism coverage is a set cost per location, as opposed to TRIA which is a percent of the property premium. Our offering is $1 per unit, per month. Additionally, once necessary policy triggers are met, our coverage pays out almost immediately. We believe this coverage is so important that we include it on all eligible properties unless it is declined by you, the investor. Our included coverages: Active Assailant Event A malicious act involving force or violence by any person or group(s) of persons, where such person is armed with a weapon which prevents the insured from conducting its normal business operations, and which physically harms or kills two or more persons. For example, let's say an active shooter has been identified at the grocery store down the street from your property and is now on the run. The shooter forcibly enters your property and injures or restrains your tenants. Any property damage caused during this event could be a covered loss under Active Assailant Event. Act of Terrorism A forceful or violent act or series of acts committed by any person or group(s) of persons for political, religious, or ideological purposes and with the intent to influence any government and/or to put the public in fear. Act of Sabotage A subversive act or series of acts committed for political, religious, or ideological purposes including the intention to influence any government and/or put the public in fear for such purposes. Evacuation Expense Reasonable travel expenses to designated areas and the additional food and accommodation costs within those areas, in consequence of an evacuation of persons from a dangerous area. For instance, let's say a bomb was purposely placed to target a certain group in your area and the explosion resulted in damages to your property. If the damages required your tenants to leave or for you to limit access in some way, the expenses of evacuation may be covered. Gross Earnings Total net sales and other earnings derived from the operation of the insured's business LESS the cost of goods sold. If a terrorism event caused property damage to the extent that the property is uninhabitable for a period of time, this aspect of our coverage could reimburse you for loss of rental income while the property is being repaired. Where is Terrorism Coverage available? Coverage in the NREIG program is available anywhere in the United States EXCEPT for areas listed below: Chicago, IL New York City Our Terrorism coverage is available as a standalone option or as an add-on to your existing policy. To add this coverage to your properties, please contact your Client Service Advisor. Learn more about NREIG's private Terrorism option here. --- - Published: 2022-06-28 - Modified: 2024-04-16 - URL: https://nreig.com/is-it-covered-tenant-damage/ - Categories: Insurance Education, Is It Covered?, Tenant Relations - Tags: Is It Covered?, tenant damage, wear and tear Many assume that any kind of damage done by a tenant will be covered by insurance. This is simply not the case. Though coverages vary across the globe, certain types of damage done by tenants are excluded in standard policies within the U. S. marketplace. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Type of Tenant Damage is Excluded from Insurance Policies? There are two main types of tenant damage that are excluded from insurance policies - Intentional Damage and Wear-and-Tear. Intentional Damage An example of Intentional Damage would be a tenant purposefully causing harm to your property during the eviction process or shortly thereafter; it is usually a sudden, one-time event. This could include damage like: broken doors, missing appliances, spray-painted walls, smashed mirrors, and a host of other nasty surprises. Damage like this is reimbursed through the security deposit or through a civil suit. Wear-and-Tear Wear-and-Tear can look severe in some cases but is caused by the daily stresses of living over time. For example broken blinds, marks on walls, worn/stained carpet, nail holes, scratched-up hardwoods, damaged bath fixtures, and the like. This damage is also addressed through the security deposit. Some types of wear may be reserved for your cost of doing business, but it is up to you to decide which items would constitute “normal maintenance” versus those items for which the tenant will be held responsible. Check your local laws and ordinances regarding security deposits too. Damage done by tenants is not considered Vandalism or Theft according to some insurers. Though the damage done to your unit may be similar to Vandalism or Theft, the difference is that you have a written contract (i. e. the lease) entrusting your tenant with the care of your property. That contract stipulates the penalties for any misuse of the property. What Tenant Damage is Covered by Insurance? Accidental damage done by tenants is covered by most property policies. Unfortunately, both common and preventable, an accidental kitchen fire caused by inattentive cooking would generally be covered, for example. If your policy includes Water Damage, there may also be coverage for water discharge, like when the tenant’s child sends their stuffed fish for a swim in the toilet bowl. What Does the Technical Lingo of This Exclusion Look Like in My Policy? Sample policy language may look like this: “Intentional damage caused by tenants, including, but not limited to malicious destruction before and during occupancy, or within 10 days of eviction or vacancy is excluded. ” As insurance policies may vary, please check your own policy for language specific to your covered property. How Much Can Tenant Damage Cost? The potential loss varies based on the time and resources needed to repair the damage to get a unit rent-ready again. Based on claims data, we’ve easily seen damage amounts equal anywhere from $5,000 to $30,000, but it can be as much as your property is worth and could be much greater depending upon your geographic location. On top of repair costs, you must add any lost rental income. Interruptions like this can wreak havoc on your cash flow and profits but there are ways to avoid it! What Can I Do to Protect My Investment? Combat intentional tenant damage: Two words – thorough screening. There is no substitute for placing a reliable tenant. If the relationship turns sour during their stay, Cash-for-Keys may be a good alternative strategy to avoid an angry, destructive exit. Lastly, don’t be tempted to waive a security deposit to place a tenant. Placing someone that you may end up having to evict will likely cost you much more than foregoing one or two more months of rental income so you can do your due diligence in placing a better tenant. Keep wear-and-tear to a minimum: During the check-in walk-through, give your tenant a detailed list of the cost to repair or replace specific items in the property. Your goal should be to help them get back their full deposit – let them know that up front too! Also, showing up for your regular maintenance visits demonstrates your care for the property and your lead may inspire them to take better care of their home. Protect yourself by adding the Tenant Protector Plan to your coverages for rental properties: The Tenant Protector Plan provides additional protection to you, as a landlord, and your tenant for tenant-caused negligent losses. You can purchase the Tenant Protector Plan as a stand-alone option or combine it with property and liability coverage. While we always recommend that landlords require their tenants to carry renters insurance, the TPP adds an extra layer of protection for both parties. --- - Published: 2022-06-18 - Modified: 2023-06-26 - URL: https://nreig.com/is-it-covered-contractors-injuries-workmanship/ - Categories: Insurance Education, Is It Covered? - Tags: contractor, faulty workmanship, Is It Covered?, Renovation Property Insurance Though your insurance policy protects you from a variety of perils, contractor faulty workmanship or injury on the job site are two risks that are typically excluded. If structural work fails, there is no coverage available under many property policies. If a worker is injured while on the job site, coverage for those injuries are typically excluded as well, whether they are “hired”, “leased”, “temporary” or “volunteer” workers. And, even though a fire started by your contractor may be covered by insurance, your insurer would likely attempt to recover any payout made to you from your contractor’s insurer if they have coverage. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Type of Damage is Excluded? Typically, both damages to the property itself and any bodily injuries caused by faulty workmanship are excluded. For example, a roof collapse or deck support failure could cause damage to the property and potentially injure workers currently remodeling other parts of the property or future tenants and their guests. Why is This Damage Excluded? Even if you have the appropriate coverage for a property undergoing renovation, the reason for these exclusions is to avoid an overlap of coverages. Any property damage, injuries to a contractor’s employees, or negligence in their workmanship is covered under insurance policies that the contractor procures for himself, such as General Liability and Workman’s Comp. Subcontractors should get their own liability coverage, too. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: “Employees of Independent Contractors Endorsement The coverage under this Policy does not apply to “bodily injury”, “property damage”, “personal injury”, “advertising injury”, or any other injury, loss or damage sustained by any employee of an independent contractor contracted by You or on your behalf. The coverage under this Policy also does not apply to “bodily injury”, “property damage”, “personal injury”, “advertising injury”, or medical payments arising out of operations performed for you by independent contractors or your acts or omissions in connection with your general supervision of such operations. ” As insurance policies may vary, please check your own policy for language specific to your covered property. What Can This Type of Damage Cost? Injuries don’t happen on every job, but using power tools including nail guns and saws and any work involving a ladder can be quite risky. Improper construction of a deck could severely injure future tenants and their guests or careless soldering techniques could start a fire that burns the whole building. Unfortunately, when someone is hurt, lawsuits can fly in every direction, including toward the owner of the property. Construction risk should be taken seriously as an accident could take someone’s life. What Can I Do to Protect Myself? Many investors worry that their contractor will cost dramatically more if they’re required to obtain the necessary licensing, permits, and all the recommended insurance coverage. But hiring someone who isn’t properly licensed and insured can ultimately hurt your business more than if you had simply paid more for labor. A maintenance person may be appropriate for non-structural maintenance on your properties, but if more involved remodeling is going to be occurring such as a room addition, hire appropriately-qualified workers. Be sure your contractor has the correct license for their type of work. Many states have several different types of licenses that certify a contractor’s qualifications in a given discipline. Plumbers and Electricians usually have specialized training and designations, for example. Also, be sure your contractor procures any necessary permits. Each city’s ordinances vary, but permits can cover exterior painting, roof repairs, and much more. If your contractor is caught without the appropriate permits, any fines could come back on you as the owner. If structural elements fail because they haven’t been reviewed by an engineer, there could be even worse consequences. Obtain a copy of all liability policies in force. Require your contractor to add you or your business as an additional insured/certificate holder during your project. This can give you some protection if you are named in a lawsuit and generally doesn’t cost extra. Being listed on the policy should also ensure that you are notified if coverage lapses or is canceled. You will also want the contractor to guarantee his or her work for a reasonable period of time after the job is done—12 months is a good rule of thumb. What Type of Insurance Coverage Should My Contractor Have? At the bare minimum, your contractor should have a General Liability policy and, if they have employees, a Workers' Compensation policy, too. Products and Completed Operations coverage should be included in your contractor’s liability policy. This covers damage that occurs after the work is completed. If an improperly soldered pipe fails three weeks after you pay your contractor, this coverage can take care of the cost of the repairs. If you aren’t sure of the coverage being presented to you, consult your insurance agent. If you are working with a smaller outfit that doesn’t have workman’s comp, you might ask for proof of health insurance, too. Most independent contractors have policies that cover their workmanship, damage to your properties, and injuries they may cause to others—but not injuries they suffer. Contractors who have health insurance will have a safety net if they get hurt. They’ll be less likely to sue you to pay their medical bills. --- - Published: 2022-06-03 - Modified: 2023-04-18 - URL: https://nreig.com/is-it-covered-named-storms/ - Categories: Fall, Hurricanes & Storm Surges, Insurance Education, Is It Covered?, Seasonal Tips, Summer, Water, Weather Events - Tags: hurricane, named storm, National Flood Insurance Program, spring, summer, water, water damage If you have properties in coastal locations, it’s not always clear if you have coverage when a tropical storm or hurricane comes through. Damage can be caused by the force of the winds, rain driven by those winds, storm surge, and flooding. Some carriers get very specific about separating these coverages versus covering damage occurring in one storm event under the Named Storm peril. To add to the confusion, each carrier usually draws its own lines as to what qualifies as “coastal”, often referred to in policies as “Tier 1” or “Tier 2”. Some carriers draw their coverage lines according to counties, while others use a certain distance from the coast. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What is a Named Storm in Insurance? A sample policy definition may look like the following: “A named tropical storm or hurricane means a storm system that has been identified and named a tropical storm or hurricane by the National Hurricane Center of the National Weather Service. For purposes of this exclusion the duration of such a tropical storm or hurricane shall be deemed to include the period during which the tropical storm or hurricane conditions exist and the 72 hours following the termination of the final tropical storm or hurricane watch or warning issued by the National Hurricane Center of the National Weather Service, with respect to such system. ” As insurance policies may vary, please check your own policy for language specific to your covered property. What Qualifies as a Tier 1 and Tier 2 Location for Named Storm Coverage? Insurance carriers use Tier 1 and Tier 2 to define coastal areas and determine the risk of a Named Storm. Some carriers draw their coverage lines according to counties, while others use a certain distance from the coast. Some carriers may even use a combination of both. First, Tier 1 and 2 areas usually start at the tip of Texas and snake around the Gulf of Mexico and Florida, continuing up the Eastern Seaboard. The Pacific Coast is usually left out of the Tier system. Generally speaking, Tier 1 areas are typically those that are the counties right along the coastline, while Tier 2 are typically the counties located one more county from the coastline. On the other hand, some carriers will define Tier 1 to extend a certain amount of miles inland from the coast and Tier 2 yet another specified amount of miles beyond that. As you can imagine, it is very important to know what tier your property sits in and how coverage is affected in that tier. What Type of Named Storm Damage Could Be Excluded from Insurance Policies? As mentioned earlier, some carriers make a distinction between damage caused by storm surges, wind damage, and damage caused by flooding. It is important to know that even if you have Named Storm coverage, you still must purchase a separate Flood policy for damage from inland flooding to be covered. What if I Don’t Have Named Storm Coverage in My Policy? If you are in an area where your property policy excludes coverage for Named Storm, such as in Tier 1 or Tier 2, you will need to purchase additional coverage if you would like to be covered when the next tropical storm or hurricane rolls through. Though it may not happen frequently, catastrophic coverage, like Named Storm, can be vitally important as the damage can be some of, if not the costliest property damage you may experience. To put it simply, you could lose your entire investment. How Do I Add Coverage for Named Storm? Your agent can typically either add Named Storm coverage or may set up a separate policy specifically for that peril. Adding Named Storm does typically increase the premium significantly as most catastrophic coverages (Flood, Earthquake, etc. ) do. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: Named Storm Exclusion “We will not pay for loss, damage or expense caused directly or indirectly by or resulting from a named tropical storm or hurricane to a property located in a county listed above. Such loss, damage and expense are excluded regardless of any other cause or event that contributes to or aggravates the loss, damage or expense, whether concurrently or in any sequence to the loss. ” The policy may then specify a list of counties that define Tier 1 and Tier 2 areas or may state something similar: “Named Storm is excluded in Tier 1 and 2 in Texas and within 100 miles of the coast of Louisiana, Alabama, Mississippi. Named Storm is excluded in Florida. Named Storm is excluded 25 miles from the coast in Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, New Jersey and New York. Named Storm is excluded 1 mile from the coast of Rhode Island, Massachusetts, New Hampshire, and Maine. ” Windstorm or Hail Exclusion “We will not pay for loss, damage, or expenses caused by or resulting from: Windstorm or hail regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage; or Rain, snow, sand or dust, whether driven by wind or not, if the loss or damage would not have occurred but for the windstorm or hail. But if windstorm or hail results in a cause of loss other than rain, snow, sand or dust, and that resulting cause of loss is a Covered Cause of Loss, we will pay for the loss or damage caused by such Covered... --- - Published: 2022-05-26 - Modified: 2025-06-17 - URL: https://nreig.com/three-types-of-coverage-triggered-by-windstorms/ - Categories: Coverage Options, Floods, Hurricanes & Storm Surges, Insurance Education, Tornadoes & Thunderstorms, Weather Events - Tags: flood, flood coverage, flood insurance, hail, loss of rents, mold, named storm, Named Windstorm Coverage, wind As spring weather approaches, and with it, the chance for severe storms, now is the best time to make sure you have the appropriate insurance coverage needed for various windstorms. Some climate events may involve many causes of loss simultaneously, which may not all be covered by the same insurance policy. These three coverages, though not exhaustive, may kick in at various points in a windstorm: Wind/Hail Named Storm Flood Wind/Hail Within the NREIG program and most standard property policies for investment properties, Wind/Hail is included in your property coverage (note that in some states, this coverage may be excluded and need to be purchased as an endorsement) and primarily covers damage caused by heavy winds, tornadoes, and hailstorms. These weather phenomena can be common in both coastal locations as well as Midwest areas such as Oklahoma and may lead to roof damage, broken windows, or damage to detached structures like garages or sheds. While the cause of loss is covered under the property policy, it often carries a separate deductible from other types of perils such as fire. This is typically represented as a percentage of the insured value, which may vary based on the property's tier, or distance to the coast. This may be 2% to 5% but can vary. So even if your property deductible is $2,500, if you own a single-family insured to $200,000 with a 5% wind deductible, you are responsible for $10,000 before insurance payouts will begin. Named Storm As soon as a storm is given a name by the National Weather Service, standard Wind/Hail coverage no longer applies. For damage caused by a named tropical storm or hurricane to be covered, your property policy needs to include Named Storm coverage. Again, within the NREIG Program, your coverage automatically includes this coverage unless you specifically request for it not to be included. Additionally, the Named Storm deductible follows your Wind/Hail deductible. What often comes along with both Wind/Hail perils and Named Storms is significant rain, and sometimes, storm surge. It is important to consider that damage caused by rain may or may not be covered under the above perils depending on the situation. If the windstorm, or hurricane, is determined to have created a "storm-caused opening" allowing rainwater to enter the home causing damage within the property, this water damage may determine to be covered. A "storm-caused opening" could be roof shingles that have been lifted by heavy winds or hail breaking a window allowing rain to enter the home. However, if water enters the home due to a "storm surge," an abnormal rise of water level due to the presence of a storm, this would be considered Flood. Flood Flood coverage is nearly always excluded from a property policy and needs to be purchased as a separate policy or endorsement to be covered. Flood is typically overflow of a body of water. Flood coverage can be purchased through the National Flood Insurance Program (NFIP) offered by FEMA, but NREIG also offers a private flood option that waives the waiting period associated with NFIP. This policy will also come with its own deductible, separate from the Wind deductible associated with the property policy. If you are in a hurricane-prone area, it is imperative to discuss your coverage with your agent to be sure you have the coverage you are most comfortable with. What else should be considered? Other Structures If your property has any detached structures such as a shed or garage, you will want to be sure this structure is included in your policies. This structure will typically have a sublimit of coverage. Loss of Rents If, following a storm, the property is rendered uninhabitable due to the damage caused, Loss of Rents coverage can help reimburse you for lost rental income while the location is being restored. Keep in mind that the cause of loss must be an included peril in your policy in order for Loss of Rents coverage to be triggered - so if you do not have Named Storm coverage and your property sustains damage as the result of a Named Storm, this reimbursement will likely not be available. Mold Many property policies exclude damage due to Mold, which can be prevalent in properties with storm losses with extensive water. Some of the carrier policies available in the NREIG Program have limited mold coverage, so check with your Service Advisor if you need to know what is included in your policy. As soon as it is safe after a storm, take immediate action to remove standing water from your property to reduce the risk of mold forming. Tarp or secure any openings that may have been caused by wind or hail damage, remove area rugs, put furniture on blocks, and bring in fans to dry out the home. Typically, any temporary repairs or steps you take to mitigate further loss can be considered in your insurance claim, so save receipts for any expenses. --- - Published: 2022-04-29 - Modified: 2023-06-26 - URL: https://nreig.com/is-it-covered-pools-outdoor-play-equipment/ - Categories: Insurance Education, Is It Covered?, Seasonal Tips, Summer, Water - Tags: liability, play equipment, pool, safety Many assume that pools, trampolines, and other recreational outdoor equipment sitting in the yard are covered by insurance. Some also make the assumption that if a person (child or adult) is injured while using this outdoor equipment, coverage will be available to help reimburse any medical expenses. In truth, policies can vary quite a bit on this topic. Some may include these items while many will choose to exclude them as they are considered “attractive nuisances. ” Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Types of Outdoor Equipment Damage Could Be Excluded from Insurance Policies? There are two main types of damage that could be excluded: Property Damage and Bodily Injury. Property Damage Some examples of Property Damage could be: One of your trees fell on your tenant’s jungle gym in the backyard Tree roots damage your in-ground pool Your pool lifting out of the ground after a long period of heavy rains Although some policies may offer coverage for this damage, many will often exclude damage to pools, or coverage for a pool may be offered, but only as an additional (and limited) coverage that must be specifically added and likely for an additional cost. Bodily Injury Bodily Injury in this case is “any type of injury, sickness or disease sustained by a person, including death,” resulting from the use of the pool or outdoor equipment. It may be a broken tailbone caused by a slip-and-fall on the pool deck or a broken arm caused by a fall from the swings. What is an Attractive Nuisance? An attractive nuisance is something that is interesting enough that it would cause a child or teen to enter another’s property. This being the case, the law may place a special responsibility on you to take steps to protect the people who visit the property. There are rarely clear rules, but if you fail to take steps to prevent harm, especially for those who can't foresee danger from the situation, you may be held liable for someone injured on your property. Pools, playgrounds, trampolines, and other outdoor equipment are attractive nuisances and insurance companies may require owners to take precautions to reduce risk. What Happens if Someone Trespasses on the Property and is Injured in Connection to the Pool? Pools are typically considered an attractive nuisance. Meaning you are liable for accidents, even if people sneak in without your consent. You can reduce risk by surrounding the pool with a 4-foot fence, adding a lock, and covering the pool with a safety cover. Could the Property Owner be Held Responsible for an Injury that Occurs on Playground Equipment Owned by the Tenant? Hopefully, your tenant won’t sue you for an injury that occurs while their child is playing on equipment that they own, but you may end up getting tangled in a lawsuit if a guest, or trespasser, is injured on that same equipment because you allowed it on your premises. Even if you aren’t found to be negligent, you still may end up with legal fees from having to prove your innocence. Insurance policies can include clauses that remove their responsibility to defend you, for example: “Where there is no coverage under this policy, there is no duty to defend. ” What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look similar to this: Exclusions Regarding Injuries or Damage to Others’ Property General Pool Exclusion “We” do not pay for “bodily injury” or “property damage” liability arising out of the ownership, maintenance (including damage arising from the discharge or spillage of chemicals used), operation or use of any swimming pool. ” Swimming Pool Exclusion and Limitations “No coverage is provided under this policy for Bodily Injury arising from the insured’s ownership of a swimming pool that is unfenced and/or not in compliance with the city or state laws or safety requirements. The limit of liability that is applicable to any claim or suit brought against an insured relating to swimming pools is $25,000 including all expenses and defense costs. ” Trampoline and Similar Equipment Exclusion “... this Policy does not apply to “bodily injury”, “property damage”, “personal injury”, “advertising injury”, disease or illness including death resulting from such disease or illness, alleged disease or illness, or any other damages for past, present, or future claims arising in whole or in part, directly or indirectly out of the use of a trampoline or inflatable device. ” Damage to Property “This insurance does not apply to... 'Property damage:' (1) Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, organization, or entity for repair, replacement, enhancement, restoration, or maintenance of such property for any reason, including prevention of injury to a person or damage to another’s property; (3) Property loaned to you (4) Personal property in the care, custody, or control of the insured;" Exclusions Regarding Physical Damage to the Equipment Itself Earth Movement “We will not pay for loss or damage caused by... earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil, and the action of water under the ground surface. ” Water “We will not pay for loss or damage caused by... water under the ground surface pressing on, or flowing or seeping through: a) Foundations, walls, floors, or paved surfaces; Outdoor Fixtures and Furniture Exclusion “... this Policy does not insure any... --- - Published: 2022-04-27 - Modified: 2024-08-20 - URL: https://nreig.com/is-it-covered-dog-animal-limitations/ - Categories: Insurance Education, Is It Covered? - Tags: dog bite, liability insurance, pet damage As an investor, your Property Coverage protects against damage that happens to your investment property itself (i. e. the physical building). This policy usually excludes wear-and-tear due to animal nesting or infestation. Your General Liability coverage protects your financial well-being associated with that property (i. e. if your negligence at that property were to harm someone else). And, this policy will often have limitations on the coverage offered for dogs and other animals, such as an injury due to dog bites. Read on to learn more about your current policy coverages and additional ones, like dog or canine liability insurance. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Type of Damage is Excluded? As mentioned briefly above, Wear-and-Tear caused by animal nesting and infestation is typically excluded in most Property policies. This can include anything from squirrels or birds taking up residence in the attic, to termite damage, and even the secretions left behind by cockroaches and other insects. As for injuries that an animal on the premises may cause (e. g, a tenant’s dog), there are often total exclusions or limited coverage for those injuries within the General Liability policy. Though the injury to the animal itself may be covered by your tenant’s own pet health insurance policy, it is possible that you may be held responsible if your tenant’s dog bites someone. Coverage for that injury may or may not be included in your policy, so make sure you check! If you are looking for that type of coverage you may want to require or recommend tenants purchase dog or canine liability insurance. Is a Landlord Responsible if a Tenant's Dog Bites Someone? Landlord liability for dog bites is different in each state. In some states, if you know a dangerous dog is maintained on your rental property you can be held liable for any incidents involving that dog. Different lists have been compiled that include breeds of dogs that account for a high frequency of dog bites and the amount of damage the dog could inflict. Lastly, any dog not properly socialized or put into a situation where they feel threatened may react by biting. What Does the Technical Lingo for This Exclusion Look Like in My Policy? Sample policy language may look like this: Wear-and-Tear to the Building Itself “We will not pay for loss or damage caused by or resulting from any of the following: Wear-and-Tear: Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other animals. ” Limited Liability Coverage for Injuries Caused by Animals “The coverage under this Policy does not apply to “bodily injury”, “property damage”, “personal injury”, “advertising injury”, or any injury, loss or damage arising out of or caused by any animal, birds, reptiles or insects regardless of whether owned by you, in your care, or on your premises. Provided, however, that this Policy provides a sublimit of $25,000 per occurrence and in the aggregate for bodily injury caused directly by a dog bite on your premises, whether or not the dog is owned by you or in your care. ” As insurance policies may vary, please check your own policy for language specific to your covered property. What Can This Type of Damage Cost Me? One of the most common pets, dogs, can also be one of the riskiest. According to the Centers for Disease Control and Prevention, 4. 5 million people suffer dog bites each year, with about 900,000 requiring medical treatment! Furthermore, the Insurance Information Institute reported that in 2023, there were 19,062 dog bite and related injury claims filed. The average cost per claim was a whopping $58,545. You would think that you should not be liable for the actions of a dog that is owned by your tenant, but Landlord liability for dog bites is different in each state. If you are held responsible for an injury that isn’t covered by insurance, it could easily cost you your business, not to mention the impact that it could also have on your personal financial or emotional well-being. Remember, dogs aren’t the only animals that can cause injuries or physical damage to a property. For example, cat urine can be one of the most difficult things to remediate in a property. What Can I Do to Protect Myself From Issues with Animals? First, know what is in your policy. Read the sections of your insurance policy that address Wear-and-Tear caused by animals and any exclusions or limitations to coverage regarding animals. It is important to know both what you are and aren't covered for. If you don’t understand something or have questions, don’t hesitate to contact your agent who should be happy to help you! Require your tenants to carry renters insurance in the lease and enforce it. Let them know any insurance you carry on the property as the owner does not apply to their personal belongings or pets. You might suggest your tenants with dogs carry dog liability insurance, like NREIG's K9Guard. Impress upon them the importance of reporting any hazardous conditions on the property or any incidents involving an animal to you or your property manager immediately. You will want to include a section in your lease where the tenant acknowledges their understanding of these items and the penalty for breaking this section of the lease. Be proactive when it comes to routine maintenance. During your regular inspections, check for any animal “invasions” including nests, debris, and waste created by insects, birds, rodents, or other animals. Stay on top of repairs before... --- - Published: 2022-04-26 - Modified: 2023-06-26 - URL: https://nreig.com/are-your-tenants-truly-prepared-for-a-power-outage/ - Categories: Investing Tips, Tenant Relations It may require more than a flashlight for your tenants to make it through a power outage safely. Landlords, here's what to do in a power outage as told by a team member and tenant who experienced this first hand. Are your tenants truly prepared for a power outage? I know I wasn’t. It was going to be a great Father’s Day weekend. We had plans to take Dad out for a nice meal, see a movie, and maybe even play a round of miniature golf at our favorite course. That relaxing weekend quickly turned into a very stressful one when a band of intense thunderstorms (including a weak tornado) moved through our area, knocking down trees and disconnecting power to over 100,000 homes in the Kansas City metro. For many of us, a power outage may seem like a minor event, but depending upon the weather conditions and the duration of the outage, it can be a dangerous time for your tenants and your property. I hope the personal lessons I share below will help you avoid losses related to power outages and keep your tenants safe too. Hot Temperature I am used to summer power outages only lasting a few hours - just long enough to make the temperature in the house a little uncomfortable and make you wonder if you are going to have to throw out the contents of your refrigerator. Father’s Day weekend, we were out of power for about 48 hours while others in Kansas City were out of power for 72 hours or more. While that may sound like a relatively short period of time, going without air conditioning in 90-plus-degree heat and high humidity can be surprisingly exhausting and brings with it serious health risks for the elderly or those with medical needs. The lack of electricity was more problematic than a mere inconvenience of no lights, TV, computer, or ability to charge a phone; it was a matter of physical safety. And in this case, I was concerned about my Dad’s health. If the temperature is too hot, not having power can pose a real and quick threat. The NSC states that heat-related illnesses “can escalate rapidly, leading to delirium, organ damage, and even death. ” Health Research Funding reports heat injuries occur when the body reaches temperatures of 104° or higher. The good news is the odds of survival are 100% when rapid, proper treatment is given to someone suffering from heat exhaustion. Heat stroke, however, will likely require a visit to the ER. Here are some heat safety tips to share with your tenants in case of a power outage during extreme heat. Cold Temperature Although my power outage was during the summer, winter power outages are just as common and deadly. People exposed to extreme colds are susceptible to frostbite and hypothermia in a matter of minutes. Especially, if they are not dressed properly. Unlike hot weather, tenants oftentimes aren't easily able to drive somewhere else that has heat or get the items they need. Preparation matters. How to Prepare for a Power Outage Light For a short power outage, you may only need your flashlight, but the longer the outage, the more supplies your tenant is going to need. In our case, we did have headlamps, which were super helpful in navigating the dark while keeping our hands free. Candles are great, but they also present a fire hazard, and we’ve seen many costly fire claims involving unattended candles. Luckily my husband is a remodeler so he was in the know about inexpensive battery-operated puck lights. Though they usually mount to walls with a paint-safe adhesive, you can also set them on any counter in the house to provide light. This safe candle alternative can be turned on and off to save battery power, acting just like a normal lamp. Tenants will also want to plan to have extra batteries and a portable charger or power bank. Food Storage In case of a power outage, you'll also want to advise tenants to have enough nonperishable food and water. Keeping freezers and refrigerators closed will help keep food safe to eat. Throw out food if the temperature is 40 degrees or higher. Temperature Regulation Heat To cool down our home, we went straight to Walmart to buy some battery-powered fans (and a ton of batteries). With rising temps, we decided to seek air conditioning at the local sporting goods store, a restaurant, and the movie theater. (Happy Father’s Day? ) However, we didn’t want to stay away too long as we have two cats and a dog. Once we had suffered through the stifling air overnight, we decided to go on the hunt to borrow a generator. This helped us at least be able to turn on a few lights, plug in the fridge, and a couple more fans and charge our cell phones so we could stay connected with everyone. After a trip across town and half an hour of set-up, we were able to enjoy Father's Day weekend with my dad. Cold Tenants may think, "My stove and oven use gas. I'll just use that to warm up the place. " And, that is a very dangerous thought. Say hello to not only a fire and burn hazard, but also a possibility of carbon monoxide poisoning. It's very common that people will do this, so if there is a power outage in your area, make sure to make your tenants aware of the dangers. A better alternative, if there is a fireplace on the property, tenants may start a fire there. This can still be very dangerous if left unattended and without a fire extinguisher near by. So, you'll want to prepare every fall by having the fireplace serviced and cleaned and tell your tenants when they move-in where the fire extinguisher is located. Lastly, tenants may also have a generator to plug in space heaters. Space heaters can also cause a fire if left unattended.... --- - Published: 2022-03-25 - Modified: 2025-05-05 - URL: https://nreig.com/how-tpp-and-renters-insurance-work-together/ - Categories: Insurance Education - Tags: contents coverage, renter's insurance, tenant protector plan, tpp NREIG’s Tenant Protector Plan® (TPP) and Tenant Protector Plan x (TPPx) are truly distinctive offerings that helps investors in the event of a property loss caused by tenant negligence. While we always recommend that landlords require their tenants to carry renters insurance, the TPP provides protection for both parties. Below, we will outline the coverages typical in a renters policy, what the TPP/TPPx covers, and how the two work together and in conjunction with the property policy. What renters insurance covers Most standard renters insurance policies include coverage for personal property, loss of use, and personal liability (including medical payments). Personal Property Personal property coverage is fairly straightforward. Tenants may be reimbursed for the theft or destruction of their personal belongings - furniture, electronics, clothing, and appliances (only those owned by the tenant). If you, the landlord, carry contents coverage on your property policy, this only covers items owned by you, not any of your tenants' belongings. Loss of Use If there is damage to the rental property that leaves the location uninhabitable and causes the tenant to lose out-of-pocket costs to maintain their current standard of living, this coverage can reimburse those expenses. This may include hotel costs, gas, or food that exceeds normal expenses. Personal Liability Liability coverage provides the tenant with legal defense and expenses if their negligence results in injury to someone else (including on the premises of your property), or if they cause damage to your property. Medical Payments In the event your tenant does cause injury to someone else, this coverage can help cover their medical bills. How does the tenant's renters insurance help the landlord? As the property owner, you likely carry property insurance to help cover costs if your property is damaged by a sudden and unexpected event. The frequency or severity of your property claims can affect your future rates or ability to obtain coverage. So, what if that sudden loss occurs because your tenant left a candle burning or clogged the toilet? Your property insurance will likely make you whole, but by no fault of your own, your loss history is affected. If your tenant has renters insurance, your property carrier can subrogate their losses against the tenant's policy as the truly negligent party. What does subrogate mean? Subrogation is the assumption of another's right to collect debt or damages. So after your property insurer settles your claim, they will also submit a claim to the tenant's renters insurance for that carrier to reimburse them for the loss they paid out (up to the personal liability limit). This lowers your loss ratio and makes insurers look more favorably on you. Alternatively, if your tenant invites a guest over and their negligence leads to that guest getting injured on the premises of the property you own, the injured party can sue any party related to the incident. As the property owner, this puts you at risk. If your tenant is found to be legally liable, their policy will cover the defense costs, legal settlements, and medical payments (up to any stated limits) rather than your premises liability. You should require that the tenant's renters insurance policy lists you, the landlord, and your property manager as Additional Insured so that both parties are covered if drawn into a lawsuit. What do TPP or TPPx add to the equation? Have you ever had a tenant move in and show you their proof of renters insurance, only for them to stop making payments and have their coverage canceled with you none the wiser? This leaves you thinking you have this extra layer of protection, only to find out when it's too late that it is not in force. This is where the TPP can give you peace of mind, as well as a few additional benefits for you, the landlord. The TPP is purchased by the property owner and provides a limit of liability that can help alleviate your property loss history for tenant-caused negligent losses. If a tenant's renters insurance is not in place, your property carrier can subrogate against the TPP instead. It also provides $10,000 of contents coverage for your tenant's belongings. For this reason, some landlords include the cost of the TPP in their leases. But in addition to these, the Tenant Protector Plan® also provides three additional coverages that make it such a unique product. The first is a sublimit of property coverage for Sewer & Drain Backup. This means that if a toilet overflows or clogged sewer line forces water back into the house (whether due to tenant negligence or not), you are able to recover up to $10,000 for the repairs that damage may cause. * This coverage is excluded from standard property policies. Next, there is a sublimit for the belongings of tenants in adjoining units that may be damaged as a result of another tenant's negligence. Take, for instance, a duplex. The tenant in unit A accidentally starts a kitchen fire in their unit causing smoke damage to the furniture and clothing in unit B. The tenant of unit B can recover up to $2,500 to replace their damaged items. The other coverage any landlord will find beneficial is up to $1,000 in Skip Rent coverage. This allows you to recover the last month's rent (up to $1,000) in the event of unexpected vacancies. This can include a tenant who up and leaves mid-lease with no warning, military deployment, a tenant who passes away unexpectedly, or a finalized eviction. TPPx is the Tenant Liability-only version of this product–providing liability coverage for tenant-negligent property losses with a limit of $100,000. How does it work if the tenant has renters insurance and the landlord has TPP? The TPP works in excess of any renters insurance in place. So in the instance where a tenant-caused negligent loss causes $70,000 worth of damage, and the tenant's insurance policy has a $50,000 limit of liability, your property carrier can collect $50,000 from the tenant's renters insurance carrier, and another $20,000... --- - Published: 2022-03-03 - Modified: 2023-06-12 - URL: https://nreig.com/is-it-covered-trees-shrubs-landscaping/ - Categories: Insurance Education, Is It Covered? - Tags: landscaping, trees Coverage related to damage to, and caused by, trees and other greenery on the property can vary widely depending upon the specific circumstances of an incident. Some policies may include limited coverage of trees and greenery while others exclude it. In the same way, coverage may or may not be available for damage to property or injuries caused by a falling tree depending upon what caused the tree to fall and if the fallen tree was healthy or dead at the time it fell. Common losses might include landscaping damaged in a windstorm or trees falling on a variety of nearby objects including your property, the neighboring property, other items in the yard such as play equipment or a pool, cars parked in the street, or even, sadly, pedestrians who are in the wrong place at the wrong time. Welcome to our “Is It Covered? ” series. For a fuller introduction of the series, read HERE. We hope these quick reads will help you increase your understanding of your insurance coverage, clear up confusion and help you avoid preventable losses! Please bear in mind that insurance policies may vary, so always check your own policy for language specific to your covered property. If you have coverage questions, don’t hesitate to call your agent who will be happy to assist you! What Types of Damage Could Be Excluded? There are two main types of damage that could be excluded: Property Damage and Bodily Injury. Some examples of Property Damage could be: One of your trees falls on outdoor furniture you own or other shrubs or plants on the premises. Tree roots damage your in-ground pool. Trees, shrubs, or plants are damaged in a storm. Though some policies may offer limited coverage for damage to trees, shrubs, and plants, some may exclude coverage altogether through an endorsement in the policy. If coverage is included, an insurer may not offer to pay more than $250 per plant damaged and may limit the total reimbursement for damaged plants to $1000. Some policies also restrict the Causes of Loss to 5 perils: Fire, Lightning, Explosion, Riot or Civil Commotion, and Aircraft. If the trees or other greenery on your property are damaged in a Named Windstorm, and your property is in a coastal area, you will likely need Named Windstorm coverage for those items to have the potential of being covered. Named Windstorm is coverage specific to damage that happens during a Hurricane or Tropical Storm and is typically purchased separately. It is NOT the same as Wind and Hail coverage that covers items damaged in tornadoes or thunderstorm events. Liability Coverage Liability insurance coverage protects the insured financially if they are held responsible for someone else's property damage or injury. Property Damage Property Damage as it relates to Liability coverage is the type of damage you may be held responsible for if your property injures another person or causes damage to another person’s property. Your liability usually depends on the specific circumstances of the event. Some examples of Property Damage on the Liability side could be: One of your trees falls on your tenant’s property - such as a jungle gym in the backyard or their car. One of your trees falls on your neighbor’s house, fence, or car. Bodily Injury Bodily Injury under the Liability category is “any type of injury, sickness or disease sustained by a person, including death,” resulting from the “Outdoor Property. ” More common than you would think, we have seen pedestrians injured and even killed by falling trees or tree limbs. Could I Be Held Responsible for an Injury or Damage to Another’s Property Caused By One of My Trees Falling? The short answer is – it depends. If a tree falls as a result of an “act of God,” you will typically not be held responsible for the damage that occurs. One example of an “act of God” might be a healthy tree falling as a result of overly wet soil combined with intense winds or other similar circumstances created by stormy weather. The key to the definition of an “act of God” is that it is an “injury due directly and exclusively to natural causes which could not have been prevented by the exercise of reasonable care and foresight. ” If however, you are given notice that a tree is a hazard and don’t take steps to eliminate that hazard, you may be found responsible (negligent) for the damage that the falling tree causes. Furthermore, even if you aren’t found to be negligent, you still may end up with legal fees from having to prove your innocence. Insurance policies can include clauses that remove their responsibility to defend you, for example: “Where there is no coverage under this policy, there is no duty to defend. ” What Happens if One of My Trees Falls on My Neighbor’s House? If one of your trees falls on your neighbor’s house (or fence, car, etc. ) as a result of an “act of God”, your neighbor would need to contact their insurance company to seek reimbursement for any repairs they may need to make. As you were not responsible for the tree falling, your policy will not be the one to reimburse your neighbor. If, however, it is determined that you neglected to cut down the hazardous tree that damages your neighbor’s property, your Liability policy may step in to provide coverage for the damage caused as a result of your neglect. What does the technical lingo for this exclusion look like in my policy? Sample policy language may look similar to this: When Limited Coverage is Available for Damage to Trees, Shrubs, or Plants “Outdoor Property The most we will pay for loss or damage under this Extension is $1,000, but not more than $250 for any one tree, shrub or plant. These limits apply to any one occurrence, regardless of the types or number of items lost or damaged in that occurrence. ” If Coverage is Excluded... --- - Published: 2022-01-31 - Modified: 2023-06-12 - URL: https://nreig.com/2021-loss-events-in-review/ - Categories: Earthquakes & Sinkholes, Fall, Floods, Hurricanes & Storm Surges, Insurance Education, Seasonal Tips, Spring, Summer, Tornadoes & Thunderstorms, Water, Weather Events, Wildfires, Winter, Winter Storms - Tags: flood, loss mitigation, loss prevention, Named Windstorm Coverage, water damage The year 2021 continued to be an interesting year in the insurance market for loss events, with extreme and unique weather events and ongoing uncertainty around COVID. The industry as a whole continues to experience a rapidly hardening property market, a trend that accelerated in 2020 but had been snowballing for the previous five or six years. It is common for the market to cycle from hard to soft every five to ten years, so it is increasingly important for investors to ensure that their insurance agent is advising them on ways to “ride out the storm” while still maintaining adequate coverage. The new year always gives us an opportunity to look back on the previous 12 months to evaluate what happened, why it happened, and what we can learn from it. Extreme weather events were the hallmark of the year. Second, only to 2020, 2021 was marked by costly and frequent extreme weather events with a total of 21 disasters that each individually exceeded $1 billion in damages. In fact, Aon estimated that insurers would pay out upwards of $42 billion in just the first half of the year; the largest amount of insurance compensation in ten years. The total estimated damage for the year tops $145 billion. Looking back We can’t discuss extreme weather loss events in 2021 without acknowledging the “polar vortex” that affected nearly every state in the country between February 12th and 20th but hit the southern plains particularly hard. “Winter Storm Uri” is likely to be the costliest winter weather peril ever, with an estimated $15 - $20 billion in damages to be paid out by insurance (still just 25% of the total estimated damage), comparable to Hurricane Harvey in 2017. At the peak of the freezing temperatures, Texas saw an average temperature of just 12 degrees, and buildings in traditionally warmer southern states may not have been adequately insulated to withstand such temperatures. Texas experienced extended power outages, causing pipes to freeze, then burst, leading to extensive water damage. Loss damages may have been exacerbated by a surge in demand for contractors and construction materials, delays of which could also have increased the risk of mold from standing water. The Spring continued to wreak havoc on the southeastern states with tornadoes, high winds and hail, rainfall, and flooding swept through the area from Mississippi, to the Carolinas, to Tennessee, over to Oklahoma, and down to Texas and Louisiana. Summer saw the height of Atlantic hurricane season with Tropical Storm Elsa in July and Tropical Storm Fred in August, both affecting Florida. Then Hurricane Ida swept through Louisiana, becoming the costliest weather event of the year. With maximum sustained winds of 150 mph (matching those of 2020’s Hurricane Laura), Grand Isle, LA took a direct hit with 100% of homes sustaining some damage, and parts of New Orleans experiencing power outages for up to a week. After the effects of Ida moved up to the Northeastern states, it is estimated that Ida will result in nearly $75 billion in damages. In other areas of the country, Detroit and its surrounding suburbs saw significant flooding in July, the second “100-year” rain event in ten years. The frequency of flooding in this area points to aging infrastructure including water service and sewer lines, as well as electrical issues at pumping stations. A quiet Fall ushered in a vengeful Winter with some losses occurring later in the year than we’ve ever seen. December saw unseasonable and catastrophic tornadoes sweeping through the southeast and central states including two EF-4 storms in Arkansas, Missouri, Tennessee, and Kentucky (decimating the small town of Mayfield, KY), and recording six tornadoes in Illinois. Five days later, a record-breaking derecho and tornado outbreak caused widespread damage across the Midwest (more than 50 recorded) with wind gusts mirroring hurricane forces. In fact, this occurrence represents the first December derecho event in the US and the first tornado on record in Minnesota. The year came to a close with devastating wildfires in Boulder County, Colorado, brought on largely by the driest six months on record for the area, above-average temperatures, and a strong storm system bringing wind gusts in excess of 80 mph. It is believed that the initial cause of the fires was a downed power line that, combined with these dangerous conditions, caused fast spread. The fires slowed as a heavy snowfall extinguished the blazes before the new year, but not before devastating the town of Louisville. 2021, without a doubt, saw every extreme – freezing cold snaps, scorching heat waves, intense wildfires, severe drought, and heavy water loss events. How is the insurance market reacting? Following 2020’s active hurricane season and continuing into 2021, many carriers are reducing capacity for wind/hail and named windstorm coverage in catastrophe-exposed areas. This has also led to increased property rates in a bid to cover the past and expected future losses. As a direct result of the February polar vortex, we should be prepared to see premium increases, higher deductibles assigned to the peril of water damage, and even a limited appetite from carriers for Special Form coverage in the affected states moving forward. The same seems to be happening with carriers and their appetite for providing coverage in wildfire-prone areas. It is far more common for us to see coverage moratoriums assigned to wildfires over other catastrophes like hurricanes. Carriers are more cautious and requesting additional underwriting information in these areas So what can we, as investors, take from this? There is a clear need for updated infrastructure across much of the US, and it is expected that the next few years may see updates to building codes in order to ensure buildings are able to better withstand extreme events. You may consider ensuring that Ordinance or Law coverage is included in your property policy. This coverage helps provide additional funds in the event you need to make updates to your property following a covered loss (that are unrelated to the direct cause of loss)... --- - Published: 2021-11-23 - Modified: 2023-08-22 - URL: https://nreig.com/getting-smart-about-your-canine-liability-exposure/ - Categories: Coverage Options, Insurance Education, Investing Tips - Tags: dog bite, liability While it is rare for a landlord to be held liable for injury caused by their tenant’s dog, that doesn’t stop the injured party from pulling the landlord into a lawsuit, and there are some situations where the landlord could be considered responsible. The laws around liability in case of a dog bite vary from state to state. If you are a landlord who allows your tenants to have dogs, be sure you know the laws in your state. Even if the dog doesn’t have any signs of aggression or prior incident, the dog owner may be held liable for any bodily injury or property damage. A “One Bite State” means that the dog owner (and anyone who harbors or keeps the dog) will NOT be held liable for the first injury caused by a dog but CAN be held liable for bites or injury caused by a dog known to have caused injury in the past, or be considered “vicious. ” The liability is a result of keeping a dog that is known to have hurt people in the past. A “Mixed Dog Bite State” holds some level of the “one bite rule” with some additional degree of liability. You can learn more about these state laws here. As the landlord, you may become responsible in one of the following situations: You knew the dog was aggressive and did nothing. You had the right to remove the dog by retaking possession of the premises. You “harbored” or cared for the tenant’s dog or had some level of control over it. You had a rule in your lease prohibiting tenants from having vicious dogs but did not enforce the rule. If you carry your Premises Liability in the NREIG program, you have a $25,000 or $50,000 sublimit for bodily injury by canines that occur on your owned premises. However, you may also consider requiring your tenant to carry a Canine Liability policy, with you listed as Additional Insured on the policy, to act as the first line of defense. Our K9Guard product can be easily purchased by the tenant online. Learn more about this offering here. Further reading & sources Court cases where the landlord was held responsible - https://dogbitelaw. com/landlord-liability-for-dog-bites/liability-for-bites-by-tenants-dogs Landlord Liability for Tenant Dogs - https://www. nolo. com/legal-encyclopedia/free-books/dog-book/chapter4-7. html --- - Published: 2021-10-27 - Modified: 2023-06-12 - URL: https://nreig.com/how-to-know-you-need-coverage-beyond-premises-liability/ - Categories: Coverage Options, Insurance Education - Tags: errors and omissions, excess liability, liability, professional liability, workers compensation Premises liability is the legal principle that property owners have some level of accountability for accidents and injuries on their property, or premises. Premises liability impacts businesses that own business property (including investment properties) and that is legally responsible for the safety of invited guests to that property. This may include slips and falls, and personal injuries that occur at the insured premises, where the property owner/investor is determined to be the negligent party. Other Liability Coverage Options Commercial General Liability This coverage is typically purchased as business insurance to cover your business operations (not on an individual per-location basis). The insured on this policy would be your business operations entity, whereas the premises liability insures the entity that owns the property (which could be different). This coverage is needed when: Your investment business operates out of an office space and needs premises liability coverage. You are concerned about lawsuits arising from Slander or Libel lawsuits. This is a Personal & Advertising Injury exposure. Some may also extend to wrongful eviction exposure (depending on the policy wording). You have Products & Completed Operations exposure. This extends to lawsuits surrounding faulty workmanship (not intentional) after the completion of a project. If you are performing renovations on a property you own, you need to obtain this coverage through a General Contractors Liability policy. Premises liability coverage does NOT include Products & Completed Operations coverage. Umbrella or Excess Liability This coverage extends the limits of your underlying premises liability policy in case they are exhausted on a single occurrence (and may also be able to go over other commercial liability policies such as commercial auto, general contractors, or commercial general liability). This coverage is needed when: You want or are required by your lender to carry limits of liability in excess of the limits your underlying premises liability policies provide. NREIG policies offer limits of $1 million per occurrence/$2 million annual aggregate, $1 million per occ/$5 million aggregate, and $2 million per occ/$5 million aggregate per insured location. Hired/Non-Owned Auto Liability is needed when: You or your employees use your personal automobiles to run errands for the business. This coverage would extend if (during one of these errands), you or your employee is the cause of an accident. You or your employees rent automobiles for company trips and need insurance to cover them. Errors and Omissions (Professional Liability) coverage is needed when: You offer or sell professional services (where the performance of these services could cause a loss), or could be sued for errors in judgment, breaches of duty, or negligent or wrongful acts in business conduct (UNINTENTIONAL ACTS). Directors & Officers coverage is needed when: Directors and officers of your corporation could be held liable for the performance of their professional duties on behalf of the corporation (UNINTENTIONAL ACTS). Property Management Professional Liability (PM E&O) coverage is needed when: You are acting as a property manager – this protects all types of property management professionals if a tenant alleges that you were professionally negligent or failed to perform duties as promised in your contract. If you are utilizing a professional Property Manager, you should require them to carry this coverage with you or your entity listed as Additional Insured. Employment Practices Liability (EPLI) coverage is needed when: You have employees who have exposure for wrongful termination, discrimination, sexual harassment, and/or failure to promote. Wrongful Eviction coverage is needed when: You may need protection against a problem tenant who claims to have been wrongfully evicted. This coverage can be purchased on a stand-alone policy or is often covered under the Personal & Advertising Injury limit on most General Liability policies. As is true with every other coverage above, intentional acts (including criminal acts and breach of contract) are not covered. General Contractors Liability is needed when: You are licensed and acting as the general contractor on your own property or are hired for a customer’s renovation project. If you hire a General Contractor, you should require them to carry this coverage with you or your owning entity listed as Additional Insured on the Certificate of Insurance. Premises liability coverage does NOT extend to injury of anyone hired to be onsite that occurs at the insured premises. Nor does it cover the faulty work of any hired contractors. Worker’s Compensation coverage is needed when: You have employees and need to provide coverage for medical benefits and wage reimbursement for employees injured during the course of employment. Employees in return, relinquish their rights to sue you for the tort of negligence. Cyber Liability coverage is needed when: You are housing private information of your tenants online or collecting rent payments online. You need coverage for wrongful acts (an act, error, omission, negligent supervision, misstatement, or misleading statement by an insured) in connection with material on an internet site owned by the insured, or related social media. These are broad guidelines to help gauge your liability needs. If there are any questions about your potential needs, please contact us. --- - Published: 2021-08-31 - Modified: 2025-02-17 - URL: https://nreig.com/do-you-need-ordinance-or-law-coverage/ - Categories: Coverage Options, Insurance Education - Tags: ordinance or law coverage Every state, city, or local municipality has different codes and requirements that residences and buildings must abide by. In some cases, there may even be federal requirements depending on the location. As time passes, these requirements will change as new ordinances or codes are enacted. Most of the time, existing buildings that may not meet these codes are "grandfathered" from needing to make these updates immediately, but there can be time limits to grandfather clauses, and there could be instances where updates need to be made immediately. However, in the case of a covered loss at one of those grandfathered buildings, the location will need to be brought up to the current code during the repair process in order to pass inspections. In extreme cases, local or state codes could require a building to be demolished and completely rebuilt from the ground up in order to meet code. If your property insurance policy does not include Ordinance or Law coverage, the coverage will likely only extend to the repairs needed to bring the home back to its previous state, and the additional costs that could be needed to bring the building up to code will not be covered. If you suspect that your property does not meet current building codes, Ordinance or Law is important coverage to consider. What does Ordinance or Law cover? There are three components to a typical Ordinance or Law policy endorsement. Coverage for the Undamaged Portion of the Building: This means that even if there are parts of a location that are not damaged by a covered property loss if that portion of the building has repairs needed to bring the location up to code, that part would be covered by this aspect of Ordinance or Law. Or in the case where the building needs to be demolished, this extends your coverage limit to the full value of the building (not just the cost to repair the damage). Demolition Costs: If a building needs to be demolished in alignment with local ordinances, this aspect of coverage can cover those expenses. Increased Cost of Construction: This component of coverage is for either additional expenses needed for materials to bring the property up to code above and beyond the property limit. What kinds of updates may be required to bring a property up to code? Weatherproofing: a. In areas prone to hurricanes, new local ordinances may require dwellings to withstand high winds, be outfitted with storm shutters, or utilize certain roofing materials. b. In areas prone to flooding, ordinances may require certain elevations or stilting. Fire Safety: a. There may be new requirements for hard-wired smoke detectors, or having smoke detectors placed in certain rooms. b. Areas may require placement or frequency of fire extinguishers, fire escapes, or sprinkler systems. Handicapped Accessibility: Some cities may require ramps or other ADA-compliance features in the home. Plumbing or Wiring: New local ordinances may eliminate compliance of older wiring types, or require updates to water/plumbing systems. If I have Replacement Cost coverage on my property, shouldn't these updates be covered? Not necessarily. Replacement Cost coverage is intended to replace damaged property with the same or like materials, NOT upgraded materials. So, if your local ordinance now requires you to have hurricane shutters and your property's windows are damaged, the property coverage will provide reimbursement for the same kind of windows installed on the house before, but not the extra cost of the hurricane shutters. Let's look at some scenarios. Scenario 1 A kitchen fire destroys 50% of your vacation rental on the beach with battery-operated smoke detectors in the main living areas. Since the home was built, the area's local building codes have changed, now requiring residences along the beach to be raised on stilts and have hard-wired smoke detectors in every hallway, bedroom, and kitchen. This means that the entire structure will need to be demolished and rebuilt on piers with the new wiring. A standard property policy will cover the cost to demolish and rebuild the portion of the property that was damaged by the fire with the same battery-operated smoke detectors. But this will not pass the current code. The additional cost needed to demolish and rebuild the other 50% of the structure plus the new wiring and additional smoke detectors would be covered by you, out of pocket. Scenario 2 On a smaller scale, say the same kitchen fire destroys 50% of one side of a midwestern duplex with battery-operated smoke detectors in main living areas. The local ordinance now requires hard-wired smoke detectors in every hallway, bedroom, and kitchen. A standard property policy will cover the cost to repair the damage caused by the kitchen fire, but both units of the duplex (including the undamaged unit), will need to be newly equipped with hard-wired smoke detectors where they didn't previously exist. If your property policy contains an Ordinance or Law endorsement, these additional expenses can be covered. Depending on the policy, the amount of additional coverage afforded can differ, and usually, the three components of coverage (A, B, and C) will have unique limits. Several of NREIG's policies allow for an Ordinance or Law endorsement. The limit for Coverage A extends coverage to the Total Insured Value (TIV) of the location, even if the estimated loss adjustment to bring the property back to its original state is less. Coverage B and C allow for an additional 10% of the TIV for each coverage. To be eligible for this coverage, the location must be 75 years old, or newer; or have been fully updated within the last 75 years - plumbing, electric, roof, and HVAC (some carriers are only eligible on homes newer than 20 years old). The location must also be insured to Replacement Cost (at least $120 per sq. ft. ). The costs to cover updates needed to meet the current code can increase the cost of repairs by as much as 50% (or more). Don't get caught flat-footed and be out a significant... --- - Published: 2021-05-26 - Modified: 2023-06-16 - URL: https://nreig.com/what-you-need-to-know-about-your-premises-liability-coverage/ - Categories: Coverage Options - Tags: liability coverage, Premises liability As a property owner, you have certain legal responsibilities to ensure the safety of visitors to the property, depending on what type of visitor they are. The highest standard of responsibility is to your tenants and their invited guests. Your duty is to properly maintain the property, repair any potential hazard risks, and warn residents of potential dangers. Failure to adhere to these duties may be considered negligence, and any resulting injury or death may get you caught up in a lawsuit. That's where your premises liability coverage comes into play. Even uninvited guests such as a trespasser or squatter in a vacant home can be a liability risk to you as the property owner, so it is important that you be sure you know what is covered by your premises liability and are comfortable with your coverage limits. Imagine a tenant notifying you of some broken stairs at their rental and you fail to take care of the necessary repairs. The tenant falls on the broken step a few days later, injuring themselves. They can file suit against you, the landlord, for bodily injury. Your tenant’s dog bites a passerby out for a walk on your property – the injured party can sue you for their medical expenses since the incident happened on your property. A more scary example – unbeknownst to you, one of your gas appliances is leaking Carbon Monoxide into your rental home causing your tenant to die from the poisoning. As the owner, you can be sued by the tenant’s family for wrongful death. In these types of situations, you would file a claim with your premises liability carrier. You will want to be sure your premises liability coverage includes the following: Payment of damages you are legally obligated to pay because of bodily injury or property damage (to which the insurance applies) up to the policy limits and which occurs within the policy period Defense costs such as counsel, court fees, and judgments – ideally these costs are outside of the liability limits so as to not diminish the amount that could apply to any damages. Medical expenses for the injured party. Coverage for carbon monoxide pollution A sublimit for canine liability – to protect you in case of damages caused by a dog on your property If you are insured with NREIG, these are all included in your liability coverage, whereas many traditional dwelling policies contain a Total Pollution Exclusion (including carbon monoxide), and may exclude many dog breeds considered “vicious” (or no canine coverage at all). NREIG’s program has no breed exclusion. Our limits of liability also start at $1 million per occurrence with a $2 million aggregate per policy period PER location. This means that for a single covered liability incident, the coverage will pay up to $1 million PLUS, your legal defense costs. We also have higher limits available - $1 million per occurrence and $5 million annual aggregate, as well as an option at $2 million per occurrence and $5 million aggregate. Be aware that many dwelling policies offer just a $300,000 limit of liability. What isn’t covered by premises liability? Coverage for injuries and accidental death does not extend to anyone you hire to be on-site. This may include a property manager, handyperson, or general contractor. Additionally, if your tenant is completing any maintenance work at your property in exchange for decreased rent, any incident that occurs in the course of that work is not covered. Moreover, you do not want your premises liability coverage to be responsible for any injuries to or claims a tenant or visitor that are caused by those you hire. This is where you need to be careful about who you hire to be on the property. You should be sure your Property Manager carries adequate Professional Liability including both General Liability (for day-to-day business practices) and Errors & Omissions (E&O) coverage. A handyperson or contractor should be properly licensed to perform the services for which you hired them and should carry General Contractors Liability. If any of these partners have employees, they should also carry Workers' Compensation in case an employee is injured on the job. They may also consider Employment Practices Liability Insurance (EPLI) to cover claims by their employees for wrongful termination, failure to promote, or discrimination. You should have your PM and contractor(s) list you as an Additional Insured on their liability policies for the time that you employ them. This will serve two purposes. First, it will ensure that you are notified if their policy cancels for any reason, and more importantly, extend coverage to you for a liability incident on your property that is a result of their negligence. Here is a scenario for this situation. Your general contractor leaves a ladder on the property during a job. A kid playing in the neighborhood runs across the property, trips over the ladder, and hits their head. The child’s family can sue you for damages as the incident occurred on your property. If all parties are insured properly, your Premises Liability will extend defense duties to you, but as the GC is the negligent party, their liability policy would ultimately be responsible for settling the injury loss. Or perhaps your property manager fails to fix those broken stairs we mentioned earlier. You would want their Errors & Omissions coverage to step in rather than your premises liability. Other Liability coverage considerations If you do not hire a property manager and perform those management duties yourself, then you might consider Errors & Omissions coverage. Premises liability may not cover you for your negligence in performing property management activities – including tenant discrimination. NREIG recently launched a Property Management E&O offering for this hard-to-find coverage. Additionally, if your premises liability limits are not sufficient to give you peace of mind, you might consider an umbrella liability policy to extend those limits. An umbrella may also be considered as your portfolio grows larger and your business grows to provide additional protection.... --- - Published: 2021-05-26 - Modified: 2023-06-26 - URL: https://nreig.com/is-hiring-licensed-and-insured-contractors-too-costly/ - Categories: Insurance Education Many investors worry that contractors will cost dramatically more if they’re required to obtain all the recommended insurance coverage. But hiring contractors who aren’t insured can ultimately hurt your business worse than if you had simply paid more for labor. So, unless you are enthusiastic about losing sleep and money, anyone you hire to do work on your property needs to be appropriately licensed and insured. Where are you at risk? When it comes to hiring contractors, some investors assume their property coverage and premises liability coverage will protect them if a contractor gets hurt while working on their project. Don’t be fooled— anyone you hire to do work on your property is excluded from any standard ISO policy. The reason for this exclusion is to avoid an overlap of coverages. Any property damage, injuries to a contractor’s employees, or negligence in their workmanship is covered under policies that the contractor procures for himself. (Subcontractors should get their own liability coverage, too. ) Injuries don’t happen on every job, but when you work with saws, ladders, and nail guns, the risk of injury and even death increases. Paying a couple hundred or even a couple thousand dollars more for the appropriate coverage is a bargain compared to the tens or hundreds of thousands in costs you could face after an accident. What kinds of coverage are available? General Liability: Covers property damage the contractor is responsible for, as well as any negligence in workmanship once the job is completed. Worker’s Comp: Covers injuries to a general contractor’s or subcontractor’s employees if they are hurt while working on the job. The legal requirement to carry this coverage varies from state to state. In some states, it’s required with as few as one employee. Surety Bond: If the contractor cannot finish your job—due to illness or bankruptcy, for example—this type of bond will cover some of the financial losses you as the owner incur in getting the job finished. Professional Liability: Protects the contractor against liability incurred as a result of errors and omissions in the course of business. Inland Marine: Insures property in transit, such as materials and tools on their way to your property. Pollution Liability: Coverage for bodily injury or property damage arising from pollutants. Equipment Floater: Covers the contractor’s equipment, such as bulldozers, excavators, and tools. Commercial Auto: Covers the contractor’s vehicles while used in the course of business. (Hauling materials or traveling between jobsites, for example. ) Contractual Liability/Hold Harmless Agreement: General contractors should sign this agreement with their subcontractors so they are not held liable for any damage or injuries for which the sub is responsible. Builder’s Risk: Covers your property in the course of construction. Can cover property at off-site storage locations and in transit as well, including building materials waiting to be installed. Premises Liability: Covers property damage and injuries caused to third parties ( the mailman, for example) on the premises only. The owner procures this coverage, and it does not protect hired workers. Excess Liability: Increases (but does not broaden) the limit of liability coverage and will pay out only if the primary policy pays. What else does your contractor need? Licensing: A license isn’t a 100 percent guarantee that all work is being done according to current building codes, but if your hiring contractors that are fully licensed, it’s a good sign of their seriousness. Licensing exams last several hours, and a license can cost hundreds of dollars per year. If you are near a state border, your contractor may need licenses for multiple states. Permits: Each city’s ordinances vary, but permits can cover exterior painting, roof repairs, and much more. If your contractor doesn’t obtain the appropriate permits, any fines could come back on you as the owner. If structural elements fail because they haven’t been reviewed by an engineer, there could be even worse consequences. Certificate(s) of Liability Coverage: Obtain a copy of all liability policies in force. At the bare minimum, this means a general liability policy and, if a contractor has employees, a worker’s comp policy, too. If you aren’t sure of the coverages being presented to you, consult your insurance agent. Require your contractor to add you or your business as an additional insured/certificate holder during your project. This can give you some protection if you are named in a lawsuit, and it generally doesn’t cost extra. Being listed on the policy should also ensure that you are notified if coverage lapses or is canceled. Non-Negotiable Coverages: Products and completed operations coverage should be included in your contractor’s liability policy. This covers damage that occurs after the work is completed. If an improperly soldered pipe fails three weeks after you pay your contractor, this coverage can take care of the cost of the repairs. You will also want the contractor to guarantee his or her work for a reasonable period of time after the job is done—12 months is a good rule of thumb. Health Insurance: You might ask your contractors for proof of health insurance, too. Most independent contractors have policies that cover their workmanship, damage to your properties, and injuries they may cause to others—but not injuries they suffer. Hiring contractors who have health insurance provides a safety net if they get hurt. They’ll be less likely to sue you to pay their medical bills. Insurance is an area where you don’t want to skimp. Don’t be tempted to make your killer deal even sweeter by cutting corners in insurance. It may, in fact, end up being the deal that kills your business instead. --- - Published: 2021-03-23 - Modified: 2025-08-18 - URL: https://nreig.com/property-management-errors-omissions-for-self-managed-properties/ - Categories: Coverage Options - Tags: errors and omissions, maintenance, pmeo, property management If you have contracted with a property manager (PM) for your rental properties, they likely will (and should) carry Professional Liability or Errors & Omissions coverage. These coverages help protect them if their inadequate work or negligent actions while performing property management duties lead to a lawsuit. But what if you perform property management duties yourself? Did you know that if, in the course of performing these responsibilities, your negligence results in a claim, your Premises Liability offers you little to no protection? What activities are considered property management? When comparing the activities of a landlord to a property manager, there is certainly some gray area. Essentially, the role of a landlord is to own the property and provide for its ability to function properly (e. g. , plumbing, gas, heat, and water). The property manager (which can be, but doesn't have to be, a third party) handles most of the responsibility for maintaining the property and managing the relationship with the tenant. Specific activities can include: Setting rent rates based on market standards and collecting rent from tenants Advertising property vacancies to attract new tenants and showing the location to potential tenants Performing background or credit checks and screening of potential tenants Finalizing lease agreements with new tenants and coordinating placement Paying bills and managing the budget and financial records for the property Property maintenance to keep the property safe and inhabitable This may include responding to tenant requests, performing maintenance, or hiring contractors where necessary to fix issues and updating facilities when warranted. Resolving tenant complaints and enforcing lease requirements. As part of this responsibility, the PM should understand local landlord-tenant laws and ensure that both parties fulfill their requirements. Errors & Omissions protects you and your employees from lawsuits that may arise in the course of these activities. If you are performing these responsibilities but are not primarily a property manager, it can be difficult to find coverage. What is Errors and Omissions insurance? Errors and Omissions (E&O) or Professional Liability is carried by businesses that provide a specialized service or play an advisor role, such as financial services, lawyers, and consultants. E&O insures against claims made when the work provided or advice given causes harm to the recipient of those services. Depending on the policy and carrier, E&O can cover legal fees, court costs, and settlements. Let's say you self-manage your properties. You are responsible for maintaining a safe, habitable home for the tenants. You are unaware that one of your rentals has mold, and your tenant gets sick and sues you for negligence. In this scenario, Errors & Omissions coverage may step in. How can you obtain E&O if you self-manage your properties? NREIG offers Property Management Errors & Omission coverage for property owners who self-manage their locations in 42 states. Our PMEO coverage is purchased per location and comes with a $1MM limit of liability for exposures on the location's premises. It also includes a $25,000 sublimit for Tenant Discrimination. Discrimination can be based on gender, race, ethnicity, or age, as well as familial status, criminal background, or disability. This sublimit can provide coverage if you are sued by a potential tenant alleging you did not rent to them because of one of these reasons. Or if a property is not handicap accessible and a tenant claims this to be discriminatory. Tenant Discrimination is often excluded from many business liability policies. For many investors who do not employ a third party to manage their properties, Professional Liability and Tenant Discrimination policies can be cost-prohibitive and difficult to acquire. NREIG's Property Management Errors & Omissions is priced at $2 per unit, per month (plus taxes and fees). This policy provides a beneficial option to fill potentially harmful gaps in coverage. If you are a property owner that employs a professional property manager, you should make sure they carry these important coverages. PME&O is available as a standalone option or as an add-on to your existing policy. To add this coverage to your properties, please contact your Client Service Advisor. Learn more about this coverage and your eligibility here. --- - Published: 2020-09-28 - Modified: 2023-09-21 - URL: https://nreig.com/insurance-requirements-for-lenders-and-what-to-do-when-coverage-is-inadequate/ - Categories: Coverage Options, Insurance Education As uncertainty continues to loom in the real estate investing and private lending space, it may be more important than ever to be sure your borrowers maintain adequate insurance coverage to protect themselves and your assets. It is far too common for private lenders, especially, to fall short of what they require of their borrowers, with some lacking insurance requirements altogether. This puts your investment at risk in the event of a loss that is not covered, causing your borrower to default on their loan. Today we’ll discuss some guidelines you should consider when developing your lending institution's insurance requirements and what to do if your borrower fails to comply with them. For this purpose, we’ll focus primarily on property and premises liability coverage for single-family properties up to about 20 units at any one location. Larger complexes, commercial, or mixed-use properties require additional coverages that we can help you work through if needed. What level of insurance should you consider requiring? The property should (at minimum), be insured to the outstanding loan value, or more. Replacement Cost coverage (versus Actual Cash Value), allows your borrower the opportunity to recover depreciation that may be levied against the loss settlement during the claims process and should be required. This can help minimize the financial hardship your borrower may experience from not recovering enough money to make them whole again and bring the property back up to its value as an asset. Depending on your appetite for risk and the locations of where the properties are located on which you are lending, you can consider two coverage levels: Basic and Special Form. Basic is just that; it is named peril coverage with exclusions such as Theft, Weight of Ice, Sleet or Snow, and Water Damage that can harm investors. Coverage is afforded for only the perils named in the policy. With Special Form coverage, the burden is on the insurance carrier investigating a claim to prove that the loss was caused by an exclusion – otherwise, coverage is afforded. Special Form coverage is more comprehensive but does still contain standard exclusions. Some of these can be bought back through additional endorsement, which you may consider requiring. These include, but are not limited to: Mold & Fungus, Sewer and Drain Backup, Earth Movement (earthquake shock and sinkhole), Flood, Terrorism, and Cyber Liability. If you are in close proximity to a coast, you should consider requiring Named Windstorm coverage. Many lenders require Special Form coverage and a maximum property deductible of a percentage of the total insured value of the location (typically no more than 2%). This deductible applies to the “All Other Perils” property deductible, where there may be a higher assigned deductible for more severe perils such as Wind/Hail, Water Damage, and Theft. With regards to liability coverage, your borrower should carry commercial premises liability with a per occurrence limit of $1,000,000 with a $2,000,000 annual aggregate. You should never allow a personal liability policy and defense costs should be outside of these limits so they do not diminish what is available to settle a loss. For locations with higher unit counts or more stories, higher limits should be required. If you are working with a borrower who is renovating a property, it is important to know that premises liability coverage extends to slip and falls, or personal injuries, for instance, that occur on the premises, but do NOT extend to anyone hired to work on-site or the work being completed. These can be obtained through a General Contractor’s Liability policy, which should also be required. How should I be listed on these insurance policies? As the lender for real estate investment properties, the lender should be listed as the mortgagee on the property insurance policy. This ensures that you receive notice prior to coverage cancellation due to non-payment or any other underwriting issue, and guarantees you are listed on all claim payments for property losses at that location. This protects your interest in the property. For a liability policy, being listed as “additional insured” on your borrower’s policy serves the same purpose. What do I do if my borrower’s coverage is canceled or does not comply with my requirements? In the event you get a notification of cancellation of coverage for a property in which you have an interest, you can force-place insurance coverage with a Lender-Placed Insurance policy. This type of policy is intended to protect your interest in the property or the outstanding loan amount. You, the lender, will pay the premium on a policy of this nature, but collect it back from the borrower by adjusting their monthly payment. Learn more about NREIG’s Lender-Placed Insurance alternative, which offers the great benefits of our Insurance Program, just for lenders when it is needed. Requiring your borrowers to carry adequate insurance coverage, and having a relationship in place with a trusted insurance agent who can help you when Lender-Placed Insurance becomes necessary is critical to minimizing your risks as the lender. An agent who understands the real estate investing landscape and can help you design insurance lending requirements to fit your needs is a valuable partner in uncertain times. --- - Published: 2020-08-26 - Modified: 2024-09-16 - URL: https://nreig.com/taming-the-flame-5-ways-to-avoid-a-fire-loss/ - Categories: Fire, Weather Events, Wildfires - Tags: cooking fire, electrical fire, fire, fire alarm, fire extinguisher, fire prevention, fire safety One of the most severe losses your property could sustain is a fire. Our review of almost a decade of claims data revealed that the average fire costs an investor at least $30,000, with many fires resulting in total losses. Fires are also in the top three most frequent loss types for investment properties, right behind theft/vandalism and severe weather. Fires not only devour property, but they can also swiftly alter the course of lives through severe or fatal injuries. However, if you are proactive, you may save yourself from a painful fire loss. Let’s look at five key ways to avoid a fire loss so you, your property, tenants, and their loved ones don’t get burned - financially or physically. 1. Taming the Flame with Tenants The first way to avoid a fire loss is to choose your tenants wisely and take the time to educate them. Out of all the ways a fire can start, the most common denominator is typically your tenant. If your tenant doesn’t feel a sense of responsibility for being safe in their home, your investment’s risk for fire will increase exponentially. Unfortunately, your tenant can also lose valuable possessions or be seriously injured in a fire too. To keep your cash flow and profitability up, place and retain the best tenants possible. Screen potential tenants thoroughly, build a good working relationship with tenants, and educate them on living safely in the home. If you utilize a property manager, be sure their priority is placing a good tenant, not just getting someone in as quickly as possible. A fire loss can cost you much more than just a few months’ rent: potentially your entire investment and possibly a life. Some real-life examples of fires traced back to tenants involve: Appliances – the improper use of an oven to heat the house. Arson – an angry or evicted tenant decides to take revenge on the landlord or property owner. Candles – left burning while the occupants are in another room or out of the house. Cigarettes – someone falling asleep in bed while smoking. Cooking – tenants are unable to control a grease fire or food burning while they are in another room. Curling or Flat Iron – left on near flammable materials like a hand towel. Dryer Vents – dust build-up clogs the exhaust or lint trap, causing the appliance to overheat. Electrical Cords – too many items plugged into a power strip, multiple power strips linked together. Fireworks – children playing with firecrackers that shoot onto the roof. Matches – child playing with matches near a linen closet. Space Heaters – space heater too close to drapes or space heater tipped over. Yard Burning – tenant burns yard waste on a windy day, and the fire spreads to the main residence. 2. Taming the Flame through Property Maintenance Make timely repairs and practice proactive maintenance. Placing the best tenants is critical to your investing success, but you do not want to fall behind on maintenance. Though it takes some effort on your or your manager’s part, timely repairs and proactive maintenance are one of the simplest ways to avoid a fire at your property. Avoiding a fire loss begins as you assess your purchase. You should ask yourself what immediate repairs, if any, need to be made to bring the property to a safe, livable condition. Schedule regular inspections throughout the year, making sure you get ahead of any seasonal changes and checking on your properties as soon as possible after any severe weather. Occupied properties will need to be monitored to make sure your tenants are doing their part to keep the property in good shape, while vacant properties will need even more frequent visits so they stay secure. If you are wholesaling a property, make sure there aren’t any fire hazards that will lose you your investment before you get a chance to sell it! A lot can happen at a property in just a few hours or even minutes, so don’t become complacent in knowing your property’s condition. If you have delegated these tasks to your property manager, they should still give you regular status updates and notify you in a reasonable time frame should an emergency occur. Here are a few key areas you will want to make sure are in good working order at all times: Electrical – Does the main electrical service or box need to be upgraded to today’s code standards? Does the property have an older wiring system, such as knob-and-tube or aluminum, that will need to be upgraded? If everything is up to code, are there any loose connections, outlets, or switches that need to be repaired or replaced? Fireplace/Chimney – When was the fireplace last inspected? Last cleaned? Does it need a new screen? HVAC – Do you need to replace the furnace or AC unit? Do the ducts need cleaning? Does the furnace have a clean filter? Smoke Detectors – Are these in place outside each sleeping area and in the main living areas? Have you tested them to make sure they are operational? 3. Taming the Flame with Intruders Keep unauthorized persons out of your property. Keeping your property fire-free while it is vacant takes planning and action. Properties that look abandoned (messy yards, a full mailbox, no lights on at any time, etc. ) are more likely to become targets for theft, vandalism, drug activity, and squatters. As previously mentioned, vacant properties will need more frequent monitoring. Weekly visits by you or your property manager should be the status quo. You don’t have to spend a lengthy amount of time there, but make sure you do a lap around the exterior and interior of the property to make sure everything looks safe and secure. If you discover damage, contact any appropriate authorities immediately and put your insurer on notice too. In addition to monitoring, you will want to layer your security. This includes setting up your lighting and an alarm,... --- - Published: 2020-08-04 - Modified: 2023-09-21 - URL: https://nreig.com/guest-article-state-legislatures-set-their-sights-on-mortgage-lenders-with-california-leading-the-way/ - Categories: Insurance Education Shutting down the economy resulted in skyrocketing unemployment nationally. In an effort to keep tenants and homeowners in their homes, governors throughout the country issued emergency executive orders, many of which restricted the ability of mortgage lenders to foreclose on borrowers in default, or otherwise charge fees and default interest. With the national economy reopening, the expectation is that many of these executive orders will soon be rescinded. State legislatures are proactively seeking to fill the upcoming void to make sure that the perceived mistakes of Great Recession where millions of homeowners were thrown out of their homes is not repeated. As is often the case, the California legislature is leading the charge. California’s Legislative Response – Bringing a Missile to a Knife Fight California Banking and Finance Chair Monique Limon recently introduced sweeping mortgage legislation in Assembly Bill 2501—a move that would significantly affect mortgages for both single-family and multifamily borrowers, Property Assessed Clean Energy (PACE) financing, payday loans, and loans secured by autos and mobile homes. Entitled the COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020, the legislation mandates long-term forbearances, restrictions on foreclosures, evictions, and repossessions, and the installment of varying payment options and fee caps on payday loans. The law would be effective as soon as it is passed and remain applicable for a full six months following the Governor’s declaration that the COVID-19 emergency status has come to a close. Prohibition of Foreclosures and Mandatory Forbearances Related to Residential Collateral If passed in its current form, the law would apply to all loans secured by 1-4 family residential property (even if they are business/investment purpose loans such as fix and flip and rental). The relief bill would restrict services (including the mortgage lender if self-servicing) or any of their affiliates from initiating or carrying out any type of judicial foreclosure proceedings or recording a Notice of Default. Additionally, servicers would be prohibited from taking any eviction action against tenants after a foreclosure. The new law would also temporarily halt all judicial and nonjudicial foreclosure proceedings and associated deadlines and mandate a 180-day forbearance requested by debtors undergoing financial stress. For borrowers over 60 days delinquent on their mortgage payments, an automatic 180-day forbearance would be triggered—during which no additional fees, penalties or further interest could be charged to the related account. There are also provisions for potentially extending the forbearance period and several categories of mandated notices and loan modification options. Mandatory Forbearance for Multi-Family Loan Borrowers For loans secured by multifamily properties (those with more than 5 residential units), the bill requires the lender to offer 180-day forbearances and provide borrowers with an option for an elective 180-day extension. Multifamily borrowers in forbearance would be required to offer their tenants rent relief and be prohibited from evicting them or charging them delinquency fees or penalties. Auto & Mobile Home Related Restrictions In situations involving auto-secured loans, lenders would be restricted from retaking possession of mobile homes or automobiles for as long as the official COVID-19 state of emergency remains in effect and for an additional 180-day window following its removal. This restriction would include a prohibition on all forms of verbal or written notice of intent to take repossession. Servicers would also be required to offer 90-day forbearances, with the borrower having the option to extend it for a further 90 days. Similar to the other relief measures, servicers would not have the ability to impose additional charges for delinquency and would also have to offer modification options prior to the end of the forbearance period. PACE Program Restrictions For the PACE Program, servicers would be mandated to provide notification to borrowers in 60 days or less of the date of enactment that they are eligible for forbearance on the upcoming yearly PACE assessment if experiencing financial stress related to the coronavirus pandemic. The owner of the property under certain circumstances may have to pay the deferred PACE assessment during the following year, however, servicers could not implement additional charges or exercise any contractually afforded acceleration clauses. With respect to payday loans or deferred deposit transactions, the legislation caps fees at five percent of the check amount—cutting the current fee limit by two-thirds. Licensees would be mandated to offer clients payment options on existing transactions, giving the client up to 60 days to pay in four equal installments with no added charges. The bill would also restrict licensees from permitting clients to initiate deferred deposit transactions within 14 days of the repayment of a prior transaction. Enforcement of Restrictions Noncompliance related to any provision included within AB 2501 would be considered an unfair and deceptive business practice under Section 17200 of the Business and Professions Code, which offers a private right of action with a limited remedy. Effectively, a borrower could directly sue a lender for noncompliance rather than report the failure to the relevant regulator. Further, lenders in violation could actually lose their right to foreclose in the future unless they provided relief to the borrower. Current Status of Legislation On May 20, the Banking and Finance Committee approved the bill on a 7-3 vote. Currently, the bill sits in the Committee on Appropriations. The bill likely faces significant opposition and potential amendments—although the central focus of AB 2501 will stay the same: Financial entities offering mortgages, vehicle-secured loans, PACE program loans, and deferred deposit transactions could be required to offer some form of forbearance to California borrowers. If the bill is eventually signed into law, it would have a sweeping impact on the industry. Lenders would lose the capability to independently manage their own loans on a case-by-case basis and would be locked out of exercising any meaningful remedies despite significant borrower default. What’s Next? California tends to be one of the more active legislative bodies whose legislation is often copied nationwide. If more states take California’s broad approach, lenders nationally will have little to no recourse against defaulted borrowers for the foreseeable future. If you have any questions or would... --- - Published: 2020-08-04 - Modified: 2023-09-14 - URL: https://nreig.com/barbecues-and-things-that-go-boom/ - Categories: Fire, Seasonal Tips, Summer, Tenant Relations - Tags: tenant damage There’s really nothing more American than barbecue and Independence Day. Although this day is full of fun, it's also full of dangers to your tenants and properties. Typically an outdoor pursuit, grilling can still present a fire hazard to the home and of course, fireworks can shoot off in any direction, making for an increased risk of property fires. Let’s talk about safety tips during the Fourth of July while still allowing the celebrations to continue. Fourth of July Facts According to the NFPA, almost 19,500 fires were caused by fireworks in 2018, causing 5 deaths, 46 civilian injuries, and $105 Million in direct property damage. In 2018, 9,100 people were treated for fireworks-related injuries in U. S. hospital emergency rooms. The USFA reports that more fires are reported on July 4th than on any other day of the year. About 45 percent of all fireworks injuries happen to children under 15, states the USFA. Sparklers account for nearly one-quarter of fireworks injuries and burn at 1,200 degrees—hot enough to cause third-degree burns, the NFPA said. Comparative boiling/burning temperatures of other materials: Water boils at 212 degrees. Wood burns at 575 degrees. Glass melts at 900 degrees. Source: United States Fire Administration (USFA) & National Fire Protection Association (NFPA) Firework Safety Fireworks always require adult supervision. If you are at an event where fireworks are present, keep a close eye on little ones. To avoid injuries, view a professional fireworks display instead of creating your own show. Leave the fireworks to the experts. Glow sticks are a fun, safe alternative to sparklers. Have an outdoor movie night. Set up a screen or use the side of the house as the screen and don’t forget the bug spray! Bring on the red, white, and blue silly string, a safer way for kids to battle. Throw a birthday party for the USA and bake a cake or apple pie. Top it off with ice cream for a special treat. Grilling Safety Follow the manufacturer’s instructions when using your grill. Make sure your grill is stable and won’t tip over. Keep barbecues 3 feet or more from anything combustible, such as siding or deck rails. Keep young children and pets away from barbecues. Place used coals from your grill in a metal can when cool. Clean the grill after each use to prevent grease fires. Never leave your grill or any open flame or torch unattended. Smoke Detectors & Fire Extinguishers Smoke Detectors Install a working smoke detector on each level of the home and near sleeping areas. When the detector chirps, it usually needs a new battery. Replace batteries at least twice a year – the switch to and from Daylight Savings is a good time to do this. Fire Extinguishers Always have a working fire extinguisher in your kitchen. There are five classes of extinguishers – A, B, C, D, & K: A: Ordinary materials - wood and paper B: Flammable liquids C: Electrical Fires D: Metals K: Cooking oils ABC or BC: Multi-purpose/combination A typical extinguisher contains about 10 seconds of extinguishing power—don’t waste it! Have an escape plan ready in the event of an uncontrollable fire. We hope you have a safe, relaxing Fourth of July with these safety tips. --- - Published: 2020-08-04 - Modified: 2023-09-21 - URL: https://nreig.com/what-is-cash-for-keys-and-how-to-avoid-tenant-damage/ - Categories: Coverage Options, Investing Tips, Tenant Relations - Tags: rental property insurance, tenant damage, tenant protector plan What do you do when a normal check-out scenario clearly won’t work with your current tenant? Maybe they're months behind on rent, you are going through the eviction process, or there is animosity so great that the best course of action is to get the tenant moved out ASAP no matter the current state of the unit. You may want to utilize a technique called “Cash for Keys. ” With Cash for Keys, the tenant simply agrees to leave the property within an agreed-upon time frame, giving the keys to the owner or property manager in exchange for a small sum of money. Here's some tips to successfully use the Cash for Keys method. 1. Lessen tension While the cash amount and time frame may differ depending on each situation, the end goal is to lessen the tension between you and the tenant and get them moved out of your property without any major damage occurring along the way. This may help them to stop seeing you as the enemy or by enabling them to move on to a different living situation, they may give up their “beef” with you because their need is satisfied. Some may feel like Cash for Keys is giving in to a bad tenant, but it can often keep worse damage from happening to your property. You may still have a messy clean-up, but that is better than your property being burnt down by an angry former tenant. 2. Make a Cash for Keys agreement If you execute a Cash for Keys agreement, make sure they agree in writing to leave the property in a “broom-clean” condition. Some investors require the tenant to leave the property in move-in-ready condition and require them to make any necessary repairs. Go ahead and have them sign a Pay or Vacate Notice as well. That way, if they don’t leave, you won’t lose much time for initiating a formal eviction process. 3. Don't give any money until you have all the keys As part of your agreement, give the tenant a specific date by which they need to move out. Agree on a time to meet the tenant at the unit to verify the unit is in good condition. If the unit is still not in good shape, show the tenant what needs to be done and let them have another shot at passing your inspection in a couple of hours. Never give the tenant money until they are completely out and have turned over all keys. Bear in mind that you are likely dealing with someone who has hostility toward you, so don’t compromise your safety during this exchange. Having them sign a simple document that relinquishes their tenancy can also protect you in the event they accuse you of changing the locks on them at a later date. 4. Watch closely after move-out After the tenant has held up their end of the agreement, get them paid and thank them for a positive transaction. After they vacate, change the locks immediately! Secure all doors and windows and monitor the property more closely in the few weeks following. We have seen occurrences where tenants move out only to break in and cause damage (think stealing all appliances, furnaces, copper water lines, and electrical) a week or so later because their belongings are now out. Benefits of using the Cash for Keys method Cheaper than paying an attorney for an eviction: an average eviction may cost you $5000, while Cash for Keys may only cost you $500, for example. Creates a quicker clean-up and turn-around for re-renting. Damage left by an evicted tenant is often much more severe than wear-and-tear left in an amicable resolution to the tenant/landlord relationship. Can keep you from losing additional rent as this method gets a non-paying tenant out of the unit quickly. Often within a week or so as compared to months. Helps you avoid damage, ranging anywhere from the thousands to a complete loss, that is usually not covered by insurance. Sure, it may seem at first that the “bad guy” is getting away without any repercussions, but in the end, you are greatly reducing your risk for a catastrophic loss that may cost you your investment. --- - Published: 2020-04-27 - Modified: 2025-11-12 - URL: https://nreig.com/5-cs-to-choosing-a-quality-property-manager/ - Categories: Investing Tips - Tags: property management There are many key relationships involved in real estate investing but choosing a proficient Property Manager is critical. A good PM can help you achieve maximum cash flow from a property or may pave your way to bankruptcy. Many property losses involve “absentee” Property Managers or their tenants, evidencing the need for careful consideration when hiring this service. Today we will discuss 5 crucial qualities a good PM demonstrates and a sample of corresponding questions to help reveal if they possess these 5 C’s. Crucial “C” Quality #1 - Clear Communication Communication is the cornerstone of any investor-PM relationship. One pattern we see much more than we’d care to is a decline in communication between the property owner and PM, directly followed by damage at the property. You will want regular reports from your PM about your property’s condition and confirmation the rent is still coming in. You will also want to know immediately if something goes wrong so that it can be fixed, and any further damage minimized. Asking the following questions can help uncover your potential PM’s communication skill level. What involvement do you expect of me as an owner? (Communication is a two-way street. Understanding how they like to work can help you have a more productive relationship. It also may tell you if you are a good match for one another. If they don’t want any of your input, that could be a big red flag. ) How often do you communicate with the property owner? (Over what issues and using what method - e-mail? Phone? ) How quickly do you try to contact the property owner in the event of an emergency? Do you ask permission before performing an emergency repair or just make the repair and bill for it later? How quickly do you report any losses to the owner’s insurer? (If they don’t report losses timely, you may be denied coverage you would have originally had! ) How and when do you communicate non-payment of rent to your client? (Delaying an eviction process or going even a day or more without knowing whether the property is occupied could open you up to unnecessary losses such as theft or vandalism. ) What is your turn-around time for calls and e-mails from the owner? From the tenant? Do you troubleshoot with your tenants when they call for repairs? (Reduces time spent on service calls. Could eliminate larger losses by resolving smaller issues immediately. ) How quickly do you schedule showing/return calls? (If they are not motivated to get the unit rented, it may be an indicator of their overall motivation to work on your behalf. ) Do you run the rental applicant by the owner before you approve them? (You will want to monitor their choices, especially at the beginning of the relationship. As you build confidence and trust with the PM, the more you may allow them to act on your behalf. ) Crucial “C” Quality #2 – Credentials & Experience Depending upon the size of your portfolio and whether you invest locally or nationally, you may want to choose a Property Manager with some tenure in their profession. On the other hand, newer PMs may be hungry to build a clientele, leading them to “cross all their T’s and dot all their I’s. ” Here are a few questions that will help you find out if they have some initials at the end of their name and how long they’ve been in the management game. How many years have you been managing properties? (Experience may help the PM deal with tough situations, but a “newbie” who is hungry to learn may be more attentive to all the details. ) How many units do you manage? (There are pros and cons in using both smaller and larger companies. Decide which suits you best. ) What type of properties do you manage? (Are they a specialist or do they manage a wide variety? What fits your investing model best? ) Do you only manage properties, or do you sell them too? (You might want to consider whether you want a PM dedicated only to management or you may desire someone who can help you find new inventory too. ) How many employees do you have? (Do they have a big enough staff to service the number of properties they manage? ) What is the average tenure/years of experience of your employees? (Their staff will be the ones “in the trenches” so it is just as important that they are experienced in property management. ) Do you have any industry affiliations, certifications, designations, or awards? (Awards aren’t everything, but additional certifications show dedication to growing their expertise in their field. ) What is the average length of time clients stay with you? (Can they hang onto their clients? Are they having success for their clients? ) Crucial “C” Quality #3 - Commitment to Excellence No one cares about your property more than you, so choosing a Property Manager is a bit like selecting a “God-parent. ” You are entrusting your precious investment into your PM’s hands and want them to be committed to doing their best work in protecting it. A good property manager will take pride in being known for doing quality work at every property they manage. What have others said about the PM you’re interviewing? Do they line up with the PM’s answers to the following questions? What sets you apart from other Property Managers? (Do they have a mission statement? Do they strive to do their job better than their competitors? In what way? ) What is the furthest distance you will allow to a property you manage? (If a property is too far away from their central office, it may be hard for them to visit your property as frequently as needed. ) Do you charge fees when my property is vacant? (Some companies don’t charge fees during vacancies to motivate them to keep your property occupied. Others charge fees because... --- - Published: 2020-02-26 - Modified: 2023-09-21 - URL: https://nreig.com/guest-post-exploring-the-eviction-epidemic/ - Categories: Investing Tips You’ve probably seen the headlines: “Eviction Epidemic Hurts Families” or “Housing Prices Skyrocket Again” or “Housing Crisis Worsens”. What all these stories have in common is a lack of good data to back them up. There is no eviction epidemic. We’ve looked at many cities across the country, and whenever an eviction rate is mentioned, there’s nothing saying what it should be. Usually, the information provided to the press is inexact or partial, not taking into account all the rental housing or explaining the difference between filings and removals. And we know why prices go up. When housing demand outpaces supply, people with more money can offer more money for scarce units. Why doesn’t the supply keep up? Because the local government has clamped down on housing production. Local city councils have made things worse for providers and residents with many confusing and counter-productive laws affecting tenant-landlord law. Seattle just passed a ban on evictions in winter months. That will increase risk and costs, and those costs make rents “skyrocket. ” When did the housing “crisis” start? Nobody can answer that question definitively because there is no quantitative measure of a “crisis” the way there is for a recession or unemployment. People who want to regulate private rental property want people to believe that it’s people who own and manage rentals that caused the crisis, not a lack of supply or regulation. Too many governments have been persuaded this crisis needs more rules, regulations, taxes, and fees but not more housing. Are you concerned by this? Have you seen your local government pass more and more rules, restrictions, fees, and taxes that affect your ability to provide housing? We at Seattle For Growth think it is time to fight back. That’s why we’re forming the Center for Housing Economics, to tell the real story of how housing works, what makes its price go up, and that your work every day helps real people who need housing. Learn more about this organization and consider a contribution at SeattleForGrowth. org. Our work will be to: Provide press and policy-makers with well-researched data to counter the anti-housing provider narrative Offer better solutions based on research; and Change the narrative — your work is positive for the economy and community. You provide housing. --- - Published: 2020-02-19 - Modified: 2023-07-20 - URL: https://nreig.com/protect-your-vacant-property-from-water-damage-this-winter/ - Categories: Seasonal Tips, Water, Weather Events, Winter, Winter Storms - Tags: Vacant Property Insurance Of the three leading causes of property damage—fire, theft/vandalism, and water damage—the last one is usually the easiest to prevent. You can avoid frozen pipes and water damage at the vacant house by taking some simple steps to winterize it properly. You will want to do the following, starting at the exterior: Steps to winterize your vacant house 1. Shut off the water at the street Most water meters are found in the yard, close to the sidewalk or street. If you don’t feel 100 percent confident about doing this yourself, it is best to play it safe and have your utility company come out. 2. Give some attention to your water heater First, turn off the electrical or gas service to your water heater. If you drain it but don’t shut off the gas or electricity, you can risk burning out the heating element which can cost about $60 to $70 to repair. After turning off the water heater, drain it completely according to the manufacturer’s instructions. 3. Open up the lowest faucets on your property This is most likely an outside spigot or in the basement. After removing any hoses, drain these faucets first, and keep them open until you have drained the rest of your system. After everything is drained, give your exterior spigot an extra layer of protection with a hose bib cover. 4. Drain the system Drain all the toilets, toilet tanks, and any other pipes, making sure that there is as little water in the system as possible. Open the spigots for the showers, sinks, and bathtubs, starting at the uppermost level of the house, and systematically working your way downwards until you get to the lowest level. (Those low-level faucets you opened a bit earlier? They will help the draining process now. ) Bathrooms and kitchens will be the primary target areas for freezing, but be sure you attend to all rooms with running water. Also, drain any exterior water lines, such as the sprinkler system. Some in the industry also recommend blowing out the lines with compressed air after the lines have been emptied. 5. Pour environmentally safe, biodegradable antifreeze into each of the drains Many recommend the type used in boats and RVs, for example. This will help any remaining water in the P traps to resist freezing. Be sure to treat your toilet bowls and tanks, sinks, and any other drains in the house. Some in the industry also recommend running antifreeze through your dishwasher and washing machine. (You will simply need to run an empty cycle or two before restoring these appliances to regular use. ) 7. Tape the toilets shut and post signage So that people don’t inadvertently use them, tape the toilets shut and post signs on each winterized item. Your signs should say something like “CAUTION – WINTERIZED – DO NOT USE. ” Also, post signs over the thermostats so that prospective buyers or renters do not mess with them and cause you to have an unexpectedly high energy bill! If you leave the heat on: Be sure that the temperature is set to at least 55 degrees Fahrenheit (or even higher if your property is further north). Even if you leave the heat on, you should still turn off the water and drain the system, too. What if the power goes off during a winter storm? The pipes would freeze. Some recommend shutting off the heat completely, in addition to turning off the water and draining the system. Uninvited guests will be a lot less likely to stay in your cold house. If you must leave the water on: There are some cases (renovations and properties for sale) where turning off the water is not an option. You'll want to follow the advice above and set your heat to at least 55 degrees Fahrenheit. Then prepare your property with the following: Insulate pipes on exterior walls, crawl spaces & the attic. Open cabinet doors to allow heat to circulate around un-insulated pipes under sinks & appliances. Let warm water drip overnight to keep pipes from freezing. Insurance coverage regarding burst pipes Depending upon the type of policy you have, Water Damage caused by a burst pipe isn’t always covered. Even if you do have Water Damage coverage, if you do not follow the procedures as outlined by your insurance policy, such as maintaining heat in the building or shutting off and draining the plumbing system, that damage may NOT be covered. If you have questions about your coverage, as always, contact your client service representative who should be happy to help you! Related Reading: Is it Covered? - Burst Pipes One Last Tip: Call in the Pros If you have a boiler or wet system, or if you feel uncomfortable with any of these winterizing steps for your vacant house, contact a licensed plumber. Most will have experience with proper winterization techniques and can get the job done quickly and thoroughly for you. --- - Published: 2020-02-12 - Modified: 2025-06-16 - URL: https://nreig.com/insurance-for-new-construction-properties/ - Categories: Coverage Options, Insurance Education - Tags: New Construction Insurance, vacant land liability insurance When purchasing insurance for new construction properties, it is important to understand its unique insurance needs. Neglecting to do so exposes you and your business to hundreds of thousands of dollars in potential losses resulting from risks like fire, theft, or other property damages. How much insurance coverage is sufficient for a property being built? When it comes to insuring a new construction property, the dwelling coverage amount should be equal to the expected construction cost. This would ensure that if you had a total loss of the property being built, you would receive close to what you have invested into the property. Please remember, with new constructions your settlement amount would be settled on invested capital at the time of loss. Do I need liability insurance for a new construction property? Yes! In addition to direct property damages, new construction properties face high liability exposure. Liability coverage is always a MUST when it comes to new construction investment properties. There isn’t a right or wrong amount of coverage to carry. Properties that are being built from the ground up face greater liability exposure. They usually require higher limits of $1MM per occurrence and $2MM aggregate. One slip and fall claim could cost you hundreds of thousands of dollars. An umbrella policy might be recommended depending on your risk appetite and investment property portfolio size. There are risks associated with using your homeowner’s liability policy for new constructions. Always keep your personal lines liability policy separate from your business. Does my premises liability coverage extend to the general contractor or any workers? No, it does not. Your general contractor should carry their own GC or workers comp policy. Verify that they do and ask them to add you as an additional insured. As a matter of fact, anyone working on your property should have liability coverage of their own. By verifying that your workers have their own GC or workers comp coverage, you can help protect yourself from exposures you face by injured contractors. What deductible should I carry on a new construction project? Deductible is a portion of what you are responsible for paying “out-of-pocket” toward a loss at your property before your insurance carrier will pay for a claim. When deciding on a deductible to carry, take the lowest claim you would file and double it. If you would never file a $1,000 claim, don’t carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. If you choose a higher deductible, the premium savings generated may be more than enough to offset the difference. If you want to read about other ways to save on insurance costs, read about tips for controlling your insurance costs. Lastly, how much does new construction insurance cost? Insurance costs on properties being built vary based on several factors. The most important factors are desired insured amount, deductible and level of coverage. However, keep in mind that the cheapest coverage isn’t always the best coverage, especially for new construction properties. When speaking with your agent, pay attention to what is and isn’t covered on your policy for new construction properties. Some causes of loss can be added to your coverage and others are completely excluded. Insure your New Construction Property with National Real Estate Insurance Group When insuring a new construction, most investors choose to go with the insurance provider they used to insure their own personal residence. Most of the time, the insurance agent will either tell them they cannot do it, or offer coverage that isn’t very well suited for this type of risk, leaving you exposed. National Real Estate Insurance Group was created specifically for real estate investors and can help you insure your new construction project. Because of our monthly reporting form, you can increase your coverage amount as you are putting more money into the project, therefore never overpaying for insurance on a new construction. --- - Published: 2020-01-21 - Modified: 2023-07-28 - URL: https://nreig.com/top-property-maintenance-tips-for-every-season-of-2020/ - Categories: Fall, Seasonal Tips, Spring, Summer, Winter - Tags: alarm, deck, furnace, gutters, heating, holiday cooking, hvac, maintenance, plumbing, pool, seasonal maintenance, trees As Benjamin Franklin is credited with saying, “If you fail to plan, you are planning to fail. ” This is especially true when it comes to risk management. Many people think that they have created a bulletproof risk management strategy by incorporating or purchasing a robust set of insurance policies. But the fact is, incorporation doesn’t protect you from maintenance woes and insurance can’t – and doesn’t – cover everything that can go wrong at your property. Taking responsibility for managing risk at your property will take some of your own sweat and muscle, but it may just make the difference between ending the year in the red or the black. So, what should you include in your risk management plan? To get your list started, focus on these key property maintenance tips for each season. Spring Spring brings new life, but it also brings thunderstorms. 1. Roof and Gutters Check for damage to your roof and clean your gutters and downspouts. Replace cracked, buckled, or loose shingles, along with those missing any granules. Keep debris from accumulating in gutters, eliminate sags and dips, and be sure downspouts drain away from the foundation. 2. Trees Remove dead trees from your yard, and trim healthy trees and bushes back from utility wires. Hire a licensed and insured professional to trim dead branches and cut down large trees. In addition to preventing damage to the house, a clean yard deters thieves. 3. HVAC Have a professional inspect your air-conditioning system and clean the ducts. Give your AC a look before the pros are busy during the summer season. Check hoses for leaks, and make sure everything is draining properly. Clean or replace your HVAC filter on a monthly basis. Summer Summer is a time for fun in the sun and property maintenance. Be sure your tenants and their children have a safe place to play. 1. Decks Inspect your deck and make any necessary repairs. Replace any broken or weak deck boards and inspect handrails and grab bars to prevent injuries from falls. Sharp edges, splintered or rotting wood, rusted nails, or nail pops can also be a liability hazard. 2. Pools Bring swimming pools and spas up to current municipal standards. A safe pool has a fence around the perimeter with self-closing and self-latching gates, anti-entrapment drain covers, and the water depth is clearly marked on all sides of the pool deck. Plus, all safety equipment (life preservers, poles, etc. ) are in good working condition. Check municipal guidelines for additional safety standards. 3. Grills Remind tenants to inspect grills and make sure they are in good working condition. Check gas grills’ burner jets for clogs and obstructions and be sure that hoses are secure. Clean charcoal grills of ash, and make sure they are free of grease residue. Tenants should not use grills on wood decks, especially if they are covered! Fall Fall displays beautiful colors and creates plenty of chores. Start early to finish them all before the first frost! 1. Alarm Testing Inspect smoke and carbon monoxide detectors. Make sure carbon monoxide and smoke detectors are installed on each floor of every one of your properties. They should be placed in each bedroom, main hallway, kitchen, and basement. Units should be tested monthly and should be replaced after 10 years of use. The end of Daylight-Saving time is perfect for changing both clocks and batteries in your detectors. 2. Heating Give your furnace a tune-up. HVAC systems should be checked at least twice a year – before winter or summer arrive. Have the ducts professionally cleaned to prevent fires resulting from dust buildup. Furnace filters should be changed on a monthly basis. 3. Pests Prevent bugs and rodents from entering your property. Seal or caulk cracks, gaps, or holes near baseboards, windows, and doors. Cable, plumbing, and electric service entry points should also have a tight seal. Any hole the size of a dime or larger may allow rodents to squeeze through. Winter Winter can be punishing on your property. Prudent preparation can get you through the season peacefully. 1. Plumbing Winterize all water systems. Drain, disconnect, and store garden hoses. Install a faucet cover to help prevent outdoor faucets and any connected plumbing from freezing. Drain your sprinkler system and swimming pool pump. Turn off the water and fully drain the plumbing systems of any vacant properties. 2. Walkways Repair cracked, broken, or uneven driveways, walkways, and stairs. The expansion and contraction caused by freezing and thawing can lead to significant damage to exterior walkways. If left unchecked, these hazards can cause slips and falls. Be sure you specify in your lease who is responsible for clearing walkways and driveways of ice and snow. You may even want to provide a shovel! 3. Holiday Cooking Remind your tenants to use caution in the kitchen. Cooking is the leading cause of house fires. Never leave anything you are cooking unattended. Water spreads grease fires – put a lid on the pan to smother the fire or use a multi-purpose fire extinguisher. Keep potholders, clothing, and other flammable items away from open flames. Develop your yearlong risk management plan now and take your real estate business to greater heights. The extra effort in property maintenance can keep your investment in good condition, your tenants happy, and your ROI high. --- - Published: 2019-12-27 - Modified: 2025-06-17 - URL: https://nreig.com/5-ways-to-evade-a-fire-in-colder-months/ - Categories: Fire, Seasonal Tips, Winter - Tags: cooking fire, cooking safety, dryer fire, fire, fireplace Winter is here and an increased threat of property fires comes with it. Although a fire may be directly caused by someone else, as an investor, you can still take steps to prevent these severe losses from occurring on your property. Let’s explore what you can personally do to mitigate the five most common fire causes at investment properties. 1. Cooking Fires Cooking fires most often occur when the cook gets distracted or leaves items cooking on the stove unattended. To help your tenant chefs cook responsibly, you can: Properly install smoke detectors throughout the house. They should be installed inside every bedroom, outside each sleeping area, and on every level of the home, including the basement. Inspect them monthly to make sure they are in working condition and your tenants haven’t deactivated them when they were “chirping” for a new battery. Standard batteries should be changed at least twice a year and alarms need to be replaced about once every ten years. For more tips on smoke alarms from the National Fire Protection Association click here. Place fire extinguishers in the kitchen and other main gathering areas like hallways, the living room, the basement, and the garage. Fire extinguishers can help put out small fires before they become uncontrollable; providing them in your rentals is a must but educate your tenants on their use too! Extinguishers should be placed where they are readily accessible and along normal paths of travel so the occupant can easily grab one in the event of a fire. Multi-purpose extinguishers like ABC or BC types can put out a variety of fires and you might consider a type K extinguisher for the kitchen as they help put out grease fires. Install fire suppression products like StoveTop FireStop in your rentals. StoveTop FireStop is an inexpensive fire suppression device that can help put out a cooking fire before the cook has time to grab a lid or standard extinguisher. Mounted under the rangehood over the burners, these devices are activated when a fire’s flame reaches the product’s small fuse. Extinguishing powder is then released down onto the stove. The loud “pop” of the can opening may also alert the distracted cook so they can return to the kitchen to turn off the burners. Check with your insurance for rate savings when installing StoveTop FireStop. Related Reading: “Cooking Fires: The Most-Preventable Household Killer” 2. Heating Fires Out of fear of a higher heating bill, some tenants will opt for more dangerous methods of warming up their homes. Two scenarios we see more often than we’d like are people heating their homes with their ovens or improperly using a space heater – or set of space heaters. To ensure your tenants heat their homes safely, you can: Have all fireplaces and chimneys inspected before the cold season hits. Hiring a professional chimney sweep to give your fireplace the ok before use each year is more cost-effective than paying your insurance deductible. The inspection will reveal the health of the chimney and allow any fixes to be made before a chimney fire can occur. Educate your tenants about the risks of using space heaters. You may even want to include specific instructions for their use in your lease. Space heaters should NOT be used as the primary heating source in the house. Furthermore, any space heater in use should be newer and equipped with safety features such as auto-shut-off if knocked over. Space heaters must never be used with an extension cord but plugged directly into an outlet. Lastly, any time they are in use, one should keep a 3-foot safety zone around the heater and should never be left unattended or run overnight. Prohibiting the use of the oven as a heating apparatus for the house should also be included in your lease. A gas oven may go out or burn inefficiently, leading to carbon monoxide poisoning. Running an oven on high heat for an extended period may overload the circuit causing yet another type of fire risk. Using an oven to heat the house is both inefficient and dangerous. 3. Dryer Fires Ah, yes, warm sweaters, jeans, and fluffy blankets. This means more lint in your dryer’s lint trap too – lint that if not cleaned out regularly can lead to a fire. You can avoid a dryer fire through these simple steps: Instruct tenants to check dryer lint screens in between every load of laundry and clean them frequently. During your scheduled inspections, check the condition of dryer vents to make sure there aren’t any blockages or lint buildup that can cause the dryer to overheat. And of course, if you discover a blockage, clean out the vent! Clean dryer vents and hoses at least once a year to prevent lint and dust buildup which are fire hazards. 4. Electrical Fires During the months with more extreme temperatures, your electrical system will have a higher load placed on it. However, you can avoid any “shocking” fires by doing the following: Make sure your electrical system is up to code and in good working order prior to anyone moving in. Though older systems with Knob-and-Tube or aluminum wiring may still technically function, it is best to replace the connectors or the entire system. Knob-and-Tube wiring has no ground so it cannot service any three-pronged appliances and can be particularly dangerous where building insulation envelops the wires, states the International Association of Certified Home Inspectors. Aluminum wiring becomes weaker over time at its connection points (i. e. near outlets and other junctions) making them prone to arc or overheat, causing a fire. Aluminum wiring may be ok if it is “pigtailed” but be sure you use a licensed and insured electrician for any electrical work. Promptly remedy any electrical issues your tenant reports to you. If your tenant leaves you a message about an outlet or lighting fixture sparking (or any other hazard), make sure your response is swift! Again, be sure anyone who works on your... --- - Published: 2019-12-27 - Modified: 2024-01-16 - URL: https://nreig.com/tips-for-controlling-your-insurance-costs-in-2020/ - Categories: Insurance Education - Tags: loss prevention, New Construction Insurance, vacant land liability insurance Following the trends of 2017 and 2018 (which saw five of the 15 costliest catastrophes in history), 2019 continued to see property and liability rates rise, and more stringent underwriting requirements. Some insurers’ once strong appetites for risk in the habitational insurance market are waning. Investors with properties in catastrophe-prone areas are likely to continue to feel this rate pressure into 2020, particularly those in areas susceptible to windstorms, flooding, and fire. So, how do you control your insurance costs without jeopardizing coverage? If you find yourself experiencing increases in your property rates, or are just looking for ways to maximize ROI of your property portfolio, consider some of the following ways to control your insurance costs: Shop your rates with multiple carriers Work with an independent agent who is contracted with several carriers and programs AND understands your unique needs as an investor. This means several different carriers that may have a very different approach to the risk in question consider your property. Carefully review the differences between the cost options presented to you, as cheaper is not always better. Know what is and is not covered, and what you are giving up for a lower rate. Never jeopardize coverage and peace of mind to save a few bucks. Be sure you know what type of loss settlement method you will be subject to in the event of a loss – Replacement Cost or Actual Cash Value. Replacement Cost can be a 20-25% higher rate but provides you the opportunity to recover depreciation. Consider your plan for the property in the event of a total loss. If you would choose not to rebuild, you would be overpaying with Replacement Cost coverage. Just be sure you are adhering to any requirements from your lending institution. Consider a higher deductible Have you ever considered your deductible to be self-insurance? That’s exactly what it is, and the more you self-insure, the lower your insurance rate. Increasing your property deductible from $1,000 to $5,000 could save you as much as 25%. For a good gauge on the deductible you may be comfortable with, consider the minimum claim you would turn in, then double it. Look also at opportunities to increase the deductible on certain perils, such as Wind/Hail or Water Damage, especially if you have past claims for these types of losses. Carefully consider what claims you file. A property claim (regardless of size) can increase your premium for as much as five years following a loss. You may pay more in increased premiums over time than just paying out-of-pocket for a $500 or $1,000 loss. Save on insurance costs by making your property more resistant to a loss By properly managing your investment properties you may be able to avoid preventable losses and demonstrate to your insurer that you are serious about risk management. Many carriers will provide credits on their rates for working hardwired smoke detectors, central station burglar alarms and sprinkler systems. Install Carbon Monoxide detectors and fire extinguishers. Upgrade old electrical systems, furnace and HVACs. Be sure that you or your property manager are regularly visiting the property to perform routine inspections and maintenance. Provide your agent with as much ammunition as you can to assist in reducing costs. Require all tenants to carry renters insurance Many rental property owners have a clause in their lease requiring the tenant to carry renters insurance. This is a plus for your tenant, but also helps you save money in the long run. Tenants do negligent things. Having a renters policy in force means the insurance company representing the negligent party pays for a tenant-caused loss. This will assist in stabilizing your property rates long-term. Related Reading: What you need to know about our enhanced Tenant Protector Plan Where not to cut corners While property damage represents more controllable or “known” expenses, do not skimp on Liability coverage, where potential losses are unknown. Carry as much as you can afford with a minimum of $1,000,000 per occurrence and $2,000,000 aggregate annually. Lower limits save little money and can leave you and your business dangerously exposed in the event of a serious liability suit. If your policy has co-insurance, don’t be tempted to insure your property to a lower value to save on insurance costs. This can come back to bite you in a loss. What other coverage you should consider Cyber crimes like social engineering, hacking, and wire fraud increasingly target small and mid-size businesses. Landlords, property managers, and lenders are exposed to cyber risk every time you send or receive an email, collect rent online, use an online tenant screening tool, and nearly any digital activity. Cyber insurance can provide coverage for the cost to respond and recover from a data breach, including business interruption. Following the 9/11 attacks, insurers increasingly began excluding acts of terrorism from a standard commercial insurance policy. Many are now offering this coverage as a standalone policy, primarily for property damage and business interruption. If you own a large number of properties in a concentrated geographic area, Terrorism coverage may be a consideration for you. Depending on the location of your rental properties, consider additional endorsements for excluded natural disasters. Flooding is the number one natural disaster risk in the United States and the risk is increasing. Earthquakes and sinkholes are also excluded perils you may consider a separate policy for, though not always available in all states. Now is the time to work with your agent and take all necessary measures you can to control your insurance costs. Do not wait until your renewal is a few days out, and you are blindsided with a large increase in premium and no time to shop. --- - Published: 2019-12-17 - Modified: 2024-01-17 - URL: https://nreig.com/simple-steps-to-avoid-a-dryer-fire/ - Categories: Fire - Tags: dryer fire It is very easy to skip over maintenance on your washer and dryer, as they are simple appliances to use. But if you follow the steps below, you could avoid a dryer fire. Dryer Fire Stats 2,900 home clothes dryer fires are reported each year. Dryer fires cause an estimated 5 deaths and 100 injuries each year. $35 million in property loss happens each year because of dryer fires. The Culprits If your tenants don’t do their part to keep the lint trap clear... or, if you or your Property Manager don't clean dryer vents regularly... ... THIS could quickly become your dryer. How to Avoid a Dryer Fire Just one inexpensive tool and a little elbow grease could save you thousands! You should make cleaning your dryer vent a part of your regular maintenance. This drill-powered duct brush is inexpensive and can be found at most hardware stores. See this video for step-by-step instructions. For more fire prevention tips, read Gearing Up for Fire Prevention. --- - Published: 2019-11-19 - Modified: 2023-09-06 - URL: https://nreig.com/nreig-now-offering-terrorism-coverage/ - Categories: Coverage Options, Insurance Education - Tags: terrorism, Terrorism Risk Insurance Act, terrorist act Prior to 9/11, most insurance policies covered losses caused by a terrorist act in that they didn’t explicitly exclude terrorism as a distinct peril. After 9/11 caused upwards of $47 billion (2019 dollars) in insurance losses, one of the largest single-insured loss events in history, the industry began to reassess these types of losses. Reinsurers (insurance for insurers) covered about two-thirds of 9/11 losses, leading them to restrict coverage for such losses. As a result, primary insurers, unable to obtain reinsurance, sought permission to exclude terrorism coverage from standard commercial policies. In just a few short months, 45 states had approved these requests. This shifted the risk of property damage back to the property owners or businesses, with coverage for terrorism scarce and expensive, while lenders (especially in high-risk areas like New York) began requiring this coverage on loans. The Terrorism Risk Insurance Act In order to provide a federal backstop for catastrophic terrorism losses, Congress enacted the Terrorism Risk Insurance Act (TRIA) of 2002 which created the Terrorism Risk Insurance Program. This federal program would reimburse insurers for certain losses that resulted from an act of terrorism certified by the Secretary of the Treasury (in consultation with the Department of Homeland Security and the Attorney General). TRIA was renewed in 2005, 2007, 2015, and 2019 with some changes, and has a current expiration of December 31, 2027. Including the stipulation that beginning in 2020, even if the above criteria are met, no federal payments would be made until the loss reaches $200 million. But also removing the provision requiring that an act of terrorism be committed by a person acting on behalf of a foreign interest so that acts of domestic terrorism may be certified. How Does TRIA Work Under this rather complicated program, insurance carriers could offer policyholders coverage for terrorism losses in accordance with the terms of their property policy. Each insurer would have its own deductible to the government. If the TRIA threshold were to be met, the federal government would pay out 80% of the losses beyond that deductible to insurers. Treasury would then recoup 140% of what they paid out (with a cap) by allowing insurers to surcharge all TRIA-backed policyholders nationwide, then pass along the surcharge to the government. In essence, except for the largest of losses, the government recoups more than their payout. Add on to this the evolution of mass shootings as domestic terrorism. In many cases, these "smaller" acts will not meet the TRIA thresholds but still cause catastrophic losses to life, property, and business interruption. Real-Life Tragedy Consider these events. The Boston Marathon in 2013 bombing was NOT certified a Terrorist act to trigger payouts because it did not meet the threshold of $5 million in insurance claims against a terrorism policy as required by TRIA. According to the Massachusetts Insurance Commissioner, less than 14% of the 160 commercial property and business interruption claims that resulted from the bombing had terrorism coverage. The Las Vegas Harvest Music Festival tragedy (the deadliest mass shooting in modern U. S. history) remains in limbo, having never been certified. Offering terrorism insurance coverage outside of the TRIA program poses unique challenges for an insurer. It is difficult to predict the frequency and severity of loss because they are not accidental, as is the most insurable risk. On the contrary, most terrorist attacks aim to be as destructive as possible. The inability to estimate losses makes it very difficult to identify the appropriate premium cost. The Evolution of Terrorism Coverage All told, the restrictions of TRIA and the evolution of terrorism activity have led insurers to begin offering private, standalone terrorism coverage independent of the TRIA program. These policies typically cover losses whether they are "certified" or not. And they are more comprehensive coverage, accounting for broader attacks such as active shooters. If the last 20 years have taught us anything, it's that we cannot predict where and how the next terrorist attack will happen and who will be affected. In March 2018, a man planted explosives in five targeted areas including people's homes, a public trail, and a retail center. It's not just large companies with buildings in the city center needing terrorism coverage today. What NREIG is Doing NREIG is now including standalone Terrorism and Political Violence coverage as part of our Program for one to eight-unit rental dwellings for a low monthly cost. (Clients can decline this coverage). The policy includes coverage for Acts of Terrorism and Sabotage committed for political, religious, or ideological purposes as well as Active Assailant Events. Further, the policy provides coverage for evacuation expenses and gross earnings. As a real estate investor, it's important to consider these types of risk for your business and we are pleased to now be able to offer this additional level of coverage for our clients. To learn more about this coverage, click here. If you are a current client and wish to add this coverage to your properties, contact your Client Service Representative or log into our Client Portal to submit a change. (Some geographic exclusions apply). Learn More About Terrorism Insurance from the Insurance Information Institute. Note: This piece is not to be construed as contractual. Applicable language specific to your policy supersedes it. Information contained in this post is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations, and conditions. --- - Published: 2019-11-19 - Modified: 2024-01-17 - URL: https://nreig.com/cooking-fires-the-most-preventable-household-killer/ - Categories: Fire - Tags: cooking fire, cooking safety, fire, fire extinguisher, holiday, holiday cooking, stovetop firestop Cooking is the leading cause of home structure fires according to research conducted by the National Fire Protection Association (NFPA). As such, it is no surprise that we’ve seen our share of real-life claims confirming this statistic. The disheartening part about their frequency is that cooking fires are also one of the most preventable losses. With regular maintenance and inspections, use of fire suppression devices, working smoke alarms, and safe cooking practices, one can nearly eliminate the chance of a catastrophic cooking fire. Here's what can you do to make sure your properties and tenants aren’t harmed by an accidental cooking fire. Regular maintenance & inspections One of the simplest practices to ensure your property is always a safe living space is to perform regular inspections. These are easier if you or your property manager have already established a good working relationship with your tenants. Be sure to follow any local laws regarding proper notice, but don’t shy away from “invading” your tenants’ space. It is the only way to truly see if your property is being kept in good condition, and inspections also give you an opportunity to make sure there aren’t any maintenance items that your tenant hasn’t already reported to you. Install alarms & cooking fire suppression tools Smoke alarms and CO detectors The importance of having both of these items in constant working order in your rentals cannot be overstated. Working smoke alarms cut home fire deaths in half. (NFPA) Carbon monoxide (CO) detectors are also key because of the nature of CO’s properties: CO is often known as the silent killer because it is colorless, odorless, and tasteless. Installing interconnected alarms is recommended by the NFPA because when one alarm sounds, they all sound, alerting the occupants no matter where they are located in the house. Alarms and detectors should be tested monthly and standard batteries should be changed at least twice a year – Daylight Savings is a good time to do this. Some newer alarms come with five or 10-year batteries, but they still need to be tested regularly. The detectors themselves will also need to be changed out periodically – the typical life of a detector is 10 years. Smoke alarms and CO detectors are often required by city code, so be sure you are following any local guidelines too. Fire extinguishers Fire extinguishers can help put out small fires before they become uncontrollable, so providing them in your rentals is a must. Just be sure to educate your tenants on how to properly use them prior to moving in! There are five classes of extinguishers, but ABC or BC are multi-purpose and can put out a variety of fires, so they may be the best choice for this application. Fire Extinguisher Classes: A: Ordinary materials - wood & paper B: Flammable liquids C: Electrical fires D: Metals K: Cooking oils StoveTop FireStop This inexpensive fire suppression device can help put out a stove top fire before the cook has time to grab a lid or standard extinguisher. StoveTop FireStop products are positioned above the stove and the flames activate a small fuse on the bottom of the container, which then releases extinguishing powder down onto the stove. There is also a loud “pop” when the container opens which can alert the distracted cook so they can return to the kitchen to turn off the burners. You can learn more about StoveTop FireStop here. Fire escape plans & practice drills You know the floor plan of your property better than anyone. You probably looked at it carefully before your purchase – share what you know with your tenants. Identify two escape routes out of each room, if possible, and advise your tenants to keep these escape routes unblocked when they are considering where to place furniture. They may roll their eyes at your “Safety Sam” ways, but this advice may save their life! No one expects you to be there to run fire drills for your tenants, but you can lead them to information about fire escape planning for their safety and the safety of your property. The NFPA has all kinds of resources on its website. Click here for their page on Basic Fire Escape Planning. Educate your tenants on cooking fire safety A 2011-2015 National Fire Protection Association study revealed that U. S. fire departments responded to an average of 466 home cooking fires per day, costing over a billion in direct property damage each year and causing thousands of civilian injuries, many of them fatal. The study also discovered the following: Reported number of fires involving cooking equipment per year: 170,200 Number of fire deaths from those fires each year: 510 Number of civilian fire injuries from those fires each year: 5,470 The leading contributing factor in these fires and fire casualties: unattended cooking Electric ranges were associated with a higher risk of fires than gas ranges More than half (55%) of reported non-fatal home cooking fire injuries occurred when the victims tried to fight the fire themselves. In 2015, Thanksgiving was the peak day for home cooking fires, followed by the day before Thanksgiving, Christmas Day, Easter, and Christmas Eve. During colder months, most (if not all) cooking is done indoors. When warmer weather arrives, people fire up the grill more frequently. Both types of kitchens have their own set of fire risks. Thanksgiving is the leading day of the year for home fires involving cooking equipment (NFPA), while summer cookouts often involve both the grill outdoors and the stove indoors. To help your tenants cook safely year-round, share the following cooking tips for both indoor and outdoor cooking areas. 10 Tips for Cooking Safely Indoors Test your smoke alarms to be sure they are working before guests arrive. Stay inside the home when using the oven and check on your dish frequently. Stay in the kitchen when you are cooking on the stovetop so you can keep an eye on the food. Use a timer to help... --- - Published: 2019-10-30 - Modified: 2023-09-14 - URL: https://nreig.com/winter-maintenance-checklist/ - Categories: Checklists, Seasonal Tips, Winter - Tags: cooking, electrical, fire, fire safety, fireplace, maintenance, safety, Seasonal Checklist, trees, winter We created our Winter Maintenance Checklist to help you stay on track each season. Using them can help you avoid common (and costly) risks at your properties such as injuries caused by unstable decks and damage caused by dead trees. If you haven’t already, be sure to change those smoke detector and carbon monoxide detector batteries. Remove dead trees and trim healthy trees & bushes back from utility wires. Hire a licensed and insured professional to trim dead branches and cut down large trees. In addition to preventing damage to the house, a clean yard deters thieves. Repair cracked, broken, or uneven driveways, walkways, and stairs. The expansion and contraction caused by freezing and thawing can lead to significant damage to exterior walkways. If kept unchecked, these hazards can cause slips and falls. Be sure you specify in your lease who is responsible for clearing walkways and driveways of ice and snow. Winterize all water systems Drain, disconnect, and store garden hoses. Install a faucet cover to help prevent outdoor faucets from freezing. Drain your sprinkler system and swimming pool pump. Turn off the water and fully drain the plumbing systems of any vacant properties! Inspect your smoke & carbon monoxide alarms; one should be installed on each floor. Test alarms monthly. Change the batteries twice a year or more frequently as needed. Ensure tenants do not disconnect or remove the alarms. Make sure your multipurpose fire extinguisher is full & properly pressurized. Store the extinguisher in an accessible location and follow the manufacturer’s instructions for routine maintenance. Remind your tenants to: Use caution in the kitchen - cooking is the leading cause of house fires. Never leave anything you are cooking unattended. Water spreads grease fires - put a lid on the pan to smother the fire or use a multi‐purpose fire extinguisher. Keep potholders and other flammable items away from open flames. Install a fire suppression system such as StoveTop FireStop. Keep dryer exhaust vents free of blockages and clean the lint screen frequently. Dust and lint can easily ignite. Heavier clothing like sweaters and jeans can cause more lint build‐up so lint screens and vents will need to be cleaned more often during cooler seasons. Place space heaters at least 3 feet from anything that can burn. All space heaters should have a working automatic shut‐off in the event the heater gets tipped over. Always plug the space heater directly into an outlet (not an extension cord). Also, it is not safe to use the oven to heat the house. Make sure all electrical and extension cords are in good condition before use. Frayed cords with exposed wires are a major fire hazard, especially with holiday lights hung on Christmas trees and other decorations. Extension cords are meant for temporary use only. Don’t overload outlets with too many cords. Secure the metal fireplace screen to keep logs and sparks in the proper place. Also, cooled ashes should be disposed of in a covered metal container stored at least 10 feet from the home. Downloadable Winter Maintenance Checklist --- - Published: 2019-10-30 - Modified: 2021-04-26 - URL: https://nreig.com/understanding-umbrella-policies/ - Categories: Coverage Options, Insurance Education - Tags: excess liability, liability insurance, vacant land liability insurance The umbrella liability policy. One of the most misunderstood concepts in insurance for real estate investors. Even among insurance professionals, how best to structure property and liability insurance for rental properties can be misrepresented, leaving landlords exposed to huge financial risks. What is an Umbrella? An umbrella insurance policy is additional liability insurance coverage that goes above and beyond the limits of your liability insurance, providing an additional layer of coverage to those at risk of being sued. This means that you are required to hold an underlying (or primary) liability policy or policies, the limits of which must be exhausted in the event of damages or a lawsuit before the umbrella coverage kicks in. Umbrella coverage is specific to liability risks and does not offer ANY protection for the property itself. Common causes of premises liability loss may include a slip and fall or wrongful death. Some agents unfamiliar with real estate investing may advise a client to insure their rental property on a personal dwelling policy (which typically includes a $300,000 - $500,000 limit of liability), and purchase a personal umbrella to extend the limit of coverage over both their personal residence's homeowner's policy and investment property's dwelling policy to extend their liability limits. Here are several reasons this may not be a good idea: If you own the rental property under an entity other than your personal name (such as an LLC), the personal umbrella offers limited or no protection for that entity’s asset. Many personal umbrella policies contain a “business pursuit” exclusion, which could exclude damages or lawsuits on a rental property because it produces income. Most insurers only allow an individual to hold 4-5 dwelling policies, so if you continue to acquire investment properties, your insurer will not be able to grow with you. Tying your personal assets to your business assets from a liability perspective can be harmful to you. “We always recommend that clients treat rental properties as the business that they are, which means it is more appropriate to cover them with commercial insurance policies,” says Shawn Woedl, CEO & President of NREIG. “Policies developed for landlords typically provide higher premises liability limits, loss of rental income coverage, and allow you to buy back coverage to combat the “Total Pollution Exclusion” seen in personal lines policies. ” Look no further than carbon monoxide for a reason to avoid that exclusion. On a homeowner’s or dwelling liability policy, you will also likely be subject to a canine bite exclusion of the top 12-14 vicious dog breeds, or a full exclusion of coverage for dog bites. A commercial liability policy will often include this coverage with no breed exclusions. Even if you have a clause in your lease against pets or specific breeds, unfortunately tenants don’t always follow through. Unless you are dropping in on a regular basis to confirm there is no pit bull on the premises, for instance, you could unknowingly be at risk. Commercial Liability Policies On a commercial liability policy form, most limits of coverage start at $1,000,000 per occurrence with a $2,000,000 annual aggregate for each location individually. This already puts you at a greater included coverage limit than the typical $300,000 - $500,000 on a homeowner’s or dwelling policy. This is often sufficient to cover your business assets (and isolate your personal assets) in case of a lawsuit by a tenant. And many carriers can provide higher limits in the underlying policy, which may further reduce the need for an umbrella. But for those with a larger portfolio of properties, or who will sleep better at night knowing they have additional coverage limits, you may invest in a commercial umbrella policy. There is no right or wrong answer when determining how much liability coverage is enough, talk to your agent about what makes sense for your business. Excess vs Umbrella While the terms “excess” and "umbrella" are often used interchangeably and they operate in the same way, they are not the same. An Excess Liability policy provides an increased limit over just one specific line of coverage. In the case of a landlord, that is likely your Premises Liability. An Umbrella policy, while costlier, gives you more flexibility to be able to extend limits over multiple Liability policies (Professional Liability, commercial auto, Errors & Omissions, etc). And your umbrella can blanket multiple locations. Just remember, the umbrella policy “follows” the underlying liability policy. Match a personal lines liability policy to personal lines umbrella policy and commercial to commercial. And typically, anything excluded within your underlying policy is also excluded from your umbrella. So here’s how this often times works in practice if you have a commercial liability policy with a $1 million per occurrence limit, and a commercial umbrella policy with a $3 million limit. A fire ignites at one of your duplexes, resulting in the death of a tenant. The family sues you for negligence and the judge awards them a $2. 5 million judgement. Your underlying commercial liability policy pays out the first $1 million, then your umbrella policy covers the remaining $1. 5 million, and your included coverage extends to legal defense fees. If you did not have the umbrella policy, your business assets would be responsible for the additional $1. 5 million, but your personal assets (personal home, retirement account, savings, etc. ) could be insulated from the lawsuit. In Conclusion As your investment business grows, it is important that you work with an insurance agent who knows the ins and outs of your needs as an investor. Don’t put your personal or business assets at risk because you got some well-intentioned, but detrimental advice. Commercial policies may cost a bit more up front, but they provide you coverage that is more appropriate for your business. Further Reading Risks of Using Your Homeowner's Liability Policy on your Investment Properties --- - Published: 2019-10-28 - Modified: 2025-02-17 - URL: https://nreig.com/maximize-your-insurance-benefits/ - Categories: Insurance Education Though insurance shouldn’t be your only strategy for managing risk, it can be a lifesaver if you experience catastrophic property damage. To take full advantage of this risk management tool, it’s crucial to know what your insurance policy holds you accountable for. Did you know that there are actions you must take for your insurance carrier to provide your full insurance benefits? If you don’t follow the provisions of the policy, the carrier could deny a claim that might have otherwise been covered. Today, let’s address the key responsibilities most property policies require of you as the insured, so your valuable coverage will remain fully available when you need it most! Foundations: The Insurance Contract & the Purpose of Insurance Before we investigate your responsibilities, it is essential to understand the fundamental nature of the insurance contract. Yep, the insurance policy is a contract between the insured (you) and the insurer (insurance company). It basically works like this: you pay them a premium, and they promise to pay you when your property is damaged under the circumstances defined in the contract. You also have some other responsibilities in addition to paying the premium, but we’ll discuss that in a minute. It’s also very important that you grasp the foundational purpose of insurance benefits. Though financial advisors may offer insurance products, property insurance is not intended as an investment vehicle, so don’t get the two confused. The rates you pay for your property insurance are based on the cost to restore your property back to the condition it was in just prior to the loss. Its intent is not to profit, but rather to make you whole again. You will have to produce a profit with your own blood, sweat, and (hopefully not) tears. Some also mistake their insurance premium as payment for a maintenance contract. While a maintenance contract is to help pay for expenses incurred because of “wear-and-tear” (the deterioration that happens over time), insurance contracts cover sudden, unforeseen, unintended, and unplanned events. Now that we have those insurance fundamentals covered (no pun intended), let’s talk about a few responsibilities you will likely find in your property policy. It is essential to familiarize yourself with them and abide by them if you want to maximize your insurance benefits. Protective Safeguards Have you ever heard of a “protective safeguard? ” These are conditions your property must meet for coverage to be available in the event of a loss. Two common examples are: to have working smoke detectors in each unit, or to have vacant properties boarded and secured. Familiarize yourself with any protective safeguards listed in your policy and then make sure they are in place. Without them, any damage associated with their absence may not be covered. Your Duties in the Event of a Loss So, what other responsibilities do you have according to an insurance contract? Well, if you have a loss, the insurance company is counting on you to comply with the duties listed below. Doing so will maximize your insurance benefits, but not doing so can come with consequences ranging from the denial of your claim to insurance fraud. But have no fear – following this list is also very easy: 1. Notify the police if a law may have been broken. If there is a break-in or a suspicious fire, your insurer will want a copy of the police report. Whether a fire is suspicious or not, they will also want a copy of the fire report. Never put yourself in danger by entering a property that has been broken into or damaged by fire: let the local authorities do their job to investigate and make sure the area is safe before doing your own walkthrough. 2. Take all reasonable steps to protect the property from further damage, keeping a record of any expenses. This is called “mitigating the loss. ” It is very important to protect your property from further loss after it has already been damaged. For example, you may need to re-secure doors and windows, tarp the roof, or board up the property to keep trespassers, animals and weather out. Not protecting your property from excess damage can complicate the investigation process and may keep you from getting the proper – or any – settlement for your claim. 3. Cooperate with the insurer in the investigation or settlement of the claim. It is always in your best interest to be cooperative with your insurance company. But following their lead usually makes for a shorter and smoother claims process. You are certainly free to disagree with their assessment but be professional in the way you handle any disagreements. They may also examine any insured under oath about any matter related to the insurance claim and require you to sign off on your answers to the questions they ask. If you follow the Golden Rule and tell the truth, you should have nothing to worry about. 4. Give prompt notice of the loss or damage, including a description of the property involved. Giving prompt notice means as soon as you are able. Many insurers may deny coverage on something that might have been covered if you wait too long to report it. Most insurers allow ample time, usually 60 days, to report your loss after the damage is discovered; however, reporting a loss as quickly as possible makes a claim easier for your insurer to settle and helps your cash flow get back on track. 5. As soon as possible, give the insurer a description of how, when, and where the loss or damage occurred. Most insurers will have a designated form to report an incident and initiate the claims process. (This is different than the Sworn Proof of Loss discussed later. ) Be as thorough as possible when describing the damage on this form. Small details that may not seem significant to you may be important to your insurer and will help them adjust the loss fairly. 6. If requested, give a complete... --- - Published: 2019-10-25 - Modified: 2024-10-10 - URL: https://nreig.com/what-less-daylight-means-for-your-property/ - Categories: Fall, Fire, Seasonal Tips, Water - Tags: cooking, dryer fire, fall, fire, pipes The end of Daylight-Saving Time is coming, which means re-setting our clocks and “falling back. ” (One more glorious hour of sleep! ) As the daylight hours begin to wane, the types of risk your property faces also change. The quality of your preparation during milder transitional seasons like spring and fall will directly impact your property’s ability to handle the year’s most extreme weather conditions. Let’s talk about how your property’s risk changes in the fall and how you can fortify your investment for the more challenging months to come. Here are 10 things that your house may experience and fall preparation tips: 1. Cold Pipes Water damage from a burst pipe is one of the easier water losses to prevent. Unless your property experiences the freeze of the century, a few simple steps go a long way in helping you avoid this type of headache. To keep your property dry, insulate pipes near exterior walls. Tenants can help prevent a burst pipe during cold snaps by opening cabinet doors below the sink and keeping faucets on a slow drip to keep the water flowing. For vacant properties, shut the water off at the street and drain the system. If you don’t and your heater is knocked out during a storm, you could end up with a watery mess to clean up! The cost of a copper theft can also be greatly amplified if the water is on when they remove parts of your plumbing system. Maintain the heat to at least 55 degrees Fahrenheit as the temperature inside the walls will be even colder. You may need to set your thermostat even higher for climates that experience extreme freezes. 2. More Cooks in the Kitchen Many of us love spending time around the table with our families during the holiday season. Unfortunately, more cooks in the kitchen could mean more fires. Thanksgiving, Christmas Eve, and Christmas rank highest for cooking fires. How can you keep tenant chefs safe and save your investment from a costly fire? Maintain working smoke alarms. Working smoke alarms cut fire deaths in half, reports the National Fire Protection Association. Connected alarms are particularly effective as when one alarm sounds, all alarms sound, alerting the occupant(s) no matter what part of the house they are currently in. Fire extinguishers should also be placed throughout the home. These, however, must be maintained so they are ready for use – simply follow the manufacturer’s instructions. BC or ABC extinguishers can be a good choice as they put out a variety of types of fires. Tenants may need a crash course on how to use them properly too, so don’t make assumptions. Install a fire suppression device like StoveTop FireStop. This product is an inexpensive solution to reduce the damage caused by cooking fires. It may even put out a fire before the cook has time to grab a lid or standard extinguisher. When activated, extinguishing powder is released from the device onto the stove, while the “pop” of the can opening alerts the distracted cook to return to the kitchen to turn off the burners. Pro Tip: Cooking should not be allowed in the garage, close to the house, or on decks, and Turkey Bombs (frozen turkeys put into hot grease) may be exciting but are extremely dangerous to those watching the show. 3. A Higher Usage of Electricity or Natural Gas The cost of heating a home in the colder months can tempt some to choose more dangerous methods of staying warm in their home. Using an oven or space heater as an “alternative” heating source often results in a costly fire. How can you keep tenants from making this dangerous substitution? First and foremost, make sure your heating system is in good working order and the house is properly insulated. Is it time for a furnace tune-up? Do windows need to be re-sealed? And, do doors need to be adjusted so they don’t let a draft through? If you stay on top of preventive maintenance, tenants may be less likely to think of using the stove or oven to heat the house. Include language in your lease prohibiting the use of ovens as a heating source for the house and discuss the dangers with your tenants. The extended use of a gas oven can lead to carbon monoxide poisoning while keeping an electric oven on a high temperature for hours on end is both inefficient and dangerous. If you allow space heaters, they should still not be used as the primary heating source in the house. Any space heater in use should be newer and equipped with safety features such as auto-shut-off if knocked over. Space heaters should never be used with an extension cord but plugged directly into the outlet. Lastly, keep a 3-foot safety zone around the heater; never leave heaters unattended or running overnight. 4. Piled up Logs in the Fireplace If one of your property’s amenities is a fireplace, make sure it’s safe to use each year! Have your fireplace and chimney professionally inspected before use each fall. Install a spark-arresting screen or glass doors to prevent embers from catching rugs, drapes, or furniture on fire. Tenants should also keep a radius of 3 feet around the fireplace clear of any items that can burn. 5. Lint Build-Up in the Dryer Lint Trap & Exhaust Vents Colder weather means bulkier clothing to wash and dry, causing lint to build up more quickly on the lint screen and in the dryer exhaust vent. Though your tenants should clean out the lint trap between each load of laundry, it’s your responsibility to maintain the exhaust vent. These should be cleaned at least once a year but should definitely be on your checklist for routine inspections. Keeping the lint screen and exhaust vent clean will keep the dryer from overheating and burning up your tenant’s clothing and potentially, your entire investment. 6. Smoke Breaks Inside the House Whether you decide to allow smoking... --- - Published: 2019-10-24 - Modified: 2023-10-19 - URL: https://nreig.com/10-cooking-tips-for-a-safe-thanksgiving/ - Categories: Fall, Fire, Seasonal Tips, Tenant Relations - Tags: cooking, fire, fire prevention, fire safety, safety Thanksgiving is the leading day of the year for home fires involving cooking equipment. For a holiday everyone can enjoy (and throughout the year) pass along the following Thanksgiving cooking tips from the National Fire Protection Association. Stay in the kitchen when you are cooking on the stovetop so you can keep an eye on the food. Stay in the home when cooking your turkey and check on it frequently. Keep children away from the stove. The stove will be hot and kids should stay 3 feet away. Make sure kids stay away from hot food & liquids. The steam or splash from vegetables, gravy, or coffee could cause serious burns. Keep the floor clear so you don’t trip over kids, toys, pocketbooks, or bags. Keep knives out of the reach of children. Be sure electric cords from an electric knife, coffee maker, plate warmer or mixer are NOT dangling off the counter within easy reach of a child. Keep matches and utility lighters out of the reach of children – up high in a locked cabinet. Never leave children alone in a room with a lit candle. Make sure your smoke alarms are working. Test them by pushing the button. Share these Thanksgiving cooking tips with your tenants to prevent damaging fires and view our fall maintenance checklist for more autumn tips. --- - Published: 2019-09-22 - Modified: 2025-08-20 - URL: https://nreig.com/come-one-come-fall-seasonal-prep-for-your-specific-climate/ - Categories: Fall, Fire, Seasonal Tips - Tags: fall, fire, frozen pipes, liability, trees, weather Autumn is the seasonal sign of change with its glorious color shifts. However, burst pipes or a fallen tree could cause a serious interruption to family time and create a sudden financial burden as you head into the holidays. Some losses can easily be prevented by carefully considering fall property risks in every climate. Your property manager will need to be on their game too. Let’s look at some of the typical risks cooler temperatures bring and how preparing for autumn can help you battle the elements year-round, no matter where your properties are located. Colder Temperatures It's no surprise that the main fall weather concern for most of the United States involves colder temperatures. Depending on how far north or south your property is and the elevation, frosts, freezes, and hard freezes will occur on varied timelines. For example, while Kansas City, Missouri experiences one of its first freezes of the year, Daytona, Florida typically has lows in the 50s. For this reason, it's important to know what constitutes a frost, freeze, and hard freeze so you can get ahead of the weather for your specific area. The National Weather Service defines them as follows: Frost: Frost occurs when there is a solid deposition of water vapor from the air. Frost will form when solid surfaces are cooled below the dew point. During a frost, minor damage to plants can occur. Freeze: Freeze occurs when the air temperature drops to 32° Fahrenheit or lower. Freezes can cause significant damage to many unprotected plants, especially if the freeze lasts several hours. Hard Freeze: Hard freeze occurs when the temperature reaches 28° Fahrenheit or lower for at least a few hours. Most plants and seasonal vegetation won’t survive a hard freeze. Frozen Pipes & Ice Dams Preventing Frozen Pipes Winterize your vacant properties – Shut off the water at the street and drain your plumbing system. Pouring environmentally safe, biodegradable antifreeze in each drain can keep your p-traps, toilets, sinks, and tubs from incurring costly damage. Maintain the heat at a minimum of 55° or higher in cold snaps. If you don’t feel comfortable doing a full winterization, it is very simple for a professional. Protect occupied properties – Insulate any pipes that are on exterior walls. Instruct tenants to open cabinets during cold snaps to let warmer air circulate into those areas. Leaving faucets on a slow drip may also keep the water moving enough to prevent a freeze. Preventing Ice Dams Ice Dams are the result of a poorly insulated attic. When snow melts then quickly freezes, it puts a heavier load on your roof. As the ice melts, it can seep into soffits and down interior walls, causing paint damage, and if the ice is heavy enough, it may even cause a collapse. So, what’s the remedy? Seal up any air leaks in your attic. Check near eves and where ceiling heights change. Any place where two surfaces create a joint can present an opportunity for water leaks from ice dams. Evaluate your insulation. The recommended amount of insulation varies depending on your property’s geographic location, so know the code standards in your area and insulate accordingly. Properly vent your roof. To prevent heat build-up and encourage air movement, vent the underside of your roof deck. The vents also help eliminate excess moisture that causes mold or other health hazards. Related Reading: Is It Covered? Burst Pipes Fires According to the National Fire Protection Association, more house fires occur in December, January, and February than any other time of year. That's why prevention should start in the fall months, before colder weather sets in and heating systems, fireplaces, and holiday decorations increase fire risk. Heating Appliances – Dust buildup creates a fire hazard, so clean HVAC systems at least twice a year. Ensuring your tenants have proper heat can also keep them from using the stove or other dangerous methods to stay warm. Using the oven to heat the home has led to many house fires, as have space heaters. If your lease permits space heaters, they should be plugged into an outlet, not an extension cord, and have an auto shut-off in case it tips over. Lastly, tenants should keep three feet of clear space around them. Fireplaces – Have the chimney inspected before your tenants use it each year. Creosote buildup is highly combustible and could start a chimney fire. Search for a Chimney Safety Institute of America (CSIA) certified professional and learn more about chimney care on their website: www. csia. org. Cooking Fires – Ensure all your properties have working smoke alarms and test them monthly. A fire extinguisher should be kept in the kitchen; follow the manufacturer’s guidelines for maintenance and instruct tenants how to use it before they move in. StoveTop FireStop is another inexpensive tool that can stop cooking fires in their tracks and prevent more costly damage or injuries to the cook or your property. Tree Damage Fall is the perfect time to manage dead limbs and tree disease. Once the leaves have fallen, it can make it easier for arborists to assess the health of the tree and prune or use treatments accordingly. Even if your trees appear healthy, it’s always a good idea to have them checked annually. A certified arborist can see warning signs that you may not pick up on. Tree damage can cost tens of thousands of dollars, and a falling tree may cause a severe injury, so be sure they are always on your maintenance checklist. Trees also add value to your property, so maintaining healthy trees can make your investment more appealing to renters and buyers alike. Related Reading: Five Signs Your Tree is in Trouble Slip and falls One of the most common lawsuits we see involves slip-and-fall accidents. Some may be false claims, but a slip-and-fall is often a completely preventable risk. A tumble down the stairs caused by a faulty railing or a slip on a deck could cause long-term... --- - Published: 2019-08-29 - Modified: 2023-09-14 - URL: https://nreig.com/fall-maintenance-checklist/ - Categories: Checklists, Fall, Seasonal Tips - Tags: fall, gutters, maintenance, Seasonal Checklist, trees We created our seasonal checklists to help you stay on track each season. Using them can help you avoid common (and costly) risks at your properties such as injuries caused by unstable decks and damage caused by dead trees. If you haven’t already, be sure to change those smoke detector and carbon monoxide detector batteries. The following is our Fall Maintenance Checklist with 10 top tips to keep your property risk-free in the fall season. Inspect the roof, soffits, and fascia boards. Using binoculars is a safe alternative to climbing a ladder. Check for damage to shingles, nail pops, and wood rot. Clean your gutters! Improperly channeled water can compromise the structural integrity of your property, including the foundation and sheetrock inside. Water damage can quickly lead to mold growth, which is a health hazard. Clean up the yard. Trim and/or prune bushes, trees, and climbing plants. Thinning dead or overgrown tree branches can prevent catastrophic roof damage in the event of a storm. Don’t let weeds, ivy, or other plants' roots exploit your foundation or siding. Remove debris from your yard; properties with well‐kept lawns are less inviting to thieves and vandals. Repair cracked, broken, or uneven driveways, walkways, and stairs. The expansion and contraction caused by freezing and thawing can lead to significant damage to exterior walkways. If kept unchecked, these hazards can cause slips and falls. Prevent bugs and rodents from entering your property. Seal or caulk cracks, gaps, or holes near baseboards, windows, and doors. Cable, plumbing, and electric service entry points should also have a tight seal. Any hole the size of a dime or larger may allow rodents to squeeze through. Winterize all water systems. Drain, disconnect, and store garden hoses. Install a faucet cover to help prevent outdoor faucets from freezing. Drain your sprinkler system and swimming pool pump. Turn off the water and fully drain the plumbing systems of any vacant properties! Inspect your smoke & carbon monoxide alarms; one should be installed on each floor. Test alarms monthly. Change the batteries twice a year or more frequently as needed. Ensure tenants do not disconnect or remove the alarms. Make sure your multipurpose fire extinguisher is full & property pressurized. Store the extinguisher in an accessible location and follow the manufacturer’s instructions for routine maintenance. Give your furnace a tune-up. HVAC systems should be checked at least twice a year—before winter or summer arrives. Have the ducts professionally cleaned to prevent fires resulting from dust buildup. Change furnace filters on a monthly basis. Have your chimney professionally cleaned and inspected. A $300 inspection will cost much less than an insurance deductible in the event of a fire. A professional can repair any cracks, remove soot and other buildup, and make sure the flue and gas lines are in good condition. Downloadable Fall Maintenance Checklist --- - Published: 2019-08-29 - Modified: 2025-06-02 - URL: https://nreig.com/unique-challenges-re-investors-face-in-disaster-preparation/ - Categories: Floods, Hurricanes & Storm Surges, Tenant Relations, Tornadoes & Thunderstorms, Weather Events, Wildfires - Tags: FEMA, flood, hurricane, named storm, tornado, wildfire There are plenty of natural disaster preparation resources to help homeowners get their families and their homes ready for a potential natural disaster. However, as a real estate investor, you have some unique challenges in readying a property that you own but don’t inhabit. Let’s talk about how you can keep your investment protected and prevent injuries from these natural disasters. Protecting Tenants As I mentioned, one of the most unique aspects of disaster preparation for real estate investors is that you do not live in the property you are trying to protect. If you have rental properties, you or your property manager will need to be prepared to contact your tenants and vice versa should there be an emergency. Do your tenants have a reliable emergency contact? Is that contact prepared to respond if they get a call? Sometimes that simply means pointing them to reliable resources like the Red Cross or FEMA. Secondly, what expectations do you have for your tenants to protect the property in the event of an emergency? Their primary focus during a weather event will be their own family and possessions, so be sure you or your PM are prepared to act swiftly to protect the property. If you do have any expectations of your tenants, communicate them well in advance, such as through your lease. In the next section, we will go further into how you can help your tenants prepare for specific types of weather risks. Don’t have rentals? Don’t worry, we will also cover ways to protect the physical building too. Protecting Investment Properties The first step in learning how to prepare for natural disasters is to become familiar with the specific types of danger your property or tenants could encounter. This danger of course differs according to each climate in the U. S. Let’s address four major weather conditions that may put your property and its inhabitants at risk. 1. Floods Though many people think flooding may only affect them if they live on a floodplain, flash flooding can affect almost any property in the United States if enough rain falls within a short window of time or for several days in a row. Finding out your Flood Zone can help you determine your general flood risk, but you may want to consider adding Flood coverage to your insurance strategy even if your property is at a lower risk for flood. Bear in mind that coverage for Flood is always purchased separately from your Property coverage and if going through the National Flood Insurance Program there is usually a 30-day waiting period for Flood coverage to go into effect. Though you may be able to avoid some water damage by utilizing sandbags, being prepared to mitigate losses after a flood is very important. Here are some tips from FEMA to help you or your property manager remain safe when assessing damages after a flood: Return to inspect the property only when authorities say it’s safe. Watch for downed power lines as they can electrically charge the water. Wear boots and heavy gloves during clean up – snakes and other animals may be in the house. Do not touch electrical equipment if it is wet or if you are standing in water. If safe to do so, turn off the electricity to prevent electric shock. Only use generators or other gas-powered machinery outdoors and away from windows. Resource for Your Tenants: Be Prepared for a Flood Handout – FEMA 2. Hurricanes For coastal locations, tropical storms and hurricanes are the main concern when it comes to natural disasters. While you may have several days to get ready for an approaching tropical storm, it is still wise to be prepared well in advance as some supplies, like plywood for boarding up windows, may sell out quickly. Double-check your insurance coverage way in advance too. Named Storm coverage is often excluded from standard property policies and must be purchased separately. In addition to having board-up materials on hand and the proper insurance, you will also want to: Make sure all trees and shrubs are well-trimmed to make them more wind-resistant. Secure any loose gutters or downspouts and clear any clogged areas to prevent water damage. Be sure the battery backup for your sump pump is in good working order to prevent drain backups. Purchase a portable generator for use during power outages. NEVER try to power the house wiring by plugging a generator into a wall outlet. Read “Hurricane Preparation Tips” and “Hurricane Recovery Tips & Resources” for a more comprehensive look at hurricane damage and injury prevention before and after the storm. 3. Wildfires Those of you investing in California or any other western states have already had a few challenging years when it comes to wildfire. The best thing you can do to protect your investment against a wildfire is to create “defensible space. ” This includes activities such as: Frequently clearing dead vegetation, dried leaves, pine needles, and ground debris from around the home Removing all tree limbs within 10 feet of the chimney, or that overhang the roof Creating fuel breaks with driveways, walkways/paths, patios, and decks. Creating at least 12 feet of space between canopy tops for trees 30 to 60 feet from the home. Make sure entry points into the home are guarded, for example, vents should be covered with mesh screen Though tenants may have some responsibilities regarding lawn maintenance, no one will be more concerned about protecting your investment property from wildfire than you. Therefore, make sure you or your property manager have a detailed plan for the upkeep of your defensible space. To keep tenants safe, emphasize the importance of following any evacuation orders from local authorities. Fire moves fast, so it is best to simply get out! 4. Tornadoes Tornadoes most often occur in the spring and summer months but can strike in any season and at all hours of the day. There are of course some areas of the country that are... --- - Published: 2019-08-29 - Modified: 2024-04-11 - URL: https://nreig.com/8-great-ways-to-protect-vacant-renovation-properties/ - Categories: Investing Tips - Tags: New Construction Insurance, Renovation Property Insurance, Vacant Property Insurance When we look at claims data, we see that many of the properties subject to break-ins, thefts, and vandalism are usually vacant or going through renovations. It's truly disappointing when you arrive to show a house that was freshly renovated only two days before and see it broken into and missing key components like stoves, ovens, air conditioning, the furnace, water heater, or even copper plumbing, and electrical wiring. Now you have to deal with police reports and invest even more time and money to restore the property all without gaining income. Here are the usual suspects in these situations: Neighborhood kids looking to make your vacant property their clubhouse Professional thieves looking to take your possessions for their gain Contractors or their sub-contractors returning to the property, knowing what’s inside Knowing this, how do you protect your vacant properties? Deterrence If you own a home that has been vacant for a while, chances are there may be other vacant homes in the same neighborhood. Make sure your house is not the easiest target on the block. Lead thieves and vandals to believe the house is being lived in or at least being watched. Don’t make it easy for them. Locks & Door Reinforcement Properly secure your property. Doors and windows should be locked with sturdy hardware. If you are purchasing a property or taking possession back from a tenant, change the locks or get them re-keyed. Who knows how many copies of keys could be floating around. Even with good locks, doors can still be kicked in. Consider reinforcing your exterior doors to keep the bad guys out. Adding metal door jamb shields and hinge shields can make a world of difference. Securing basement windows is also critical as this often provides an easy access point to the house and to expensive housing components like water heaters, the furnace, pipes, and wiring. Neighbors Getting to know your neighbors can be a big benefit. Discuss what your plans are with the house and let them know that you want to make sure they have good neighbors moving in as renters or buyers. Good relationships with your neighbors allow you to have eyes and ears around your investment property. They should feel free to call you if they see anything suspicious. Inspections Driving by regularly and making sure the house is still secure is important. It may provide a good opportunity to wave at the neighbors or get out and talk to them to build that relationship. If you notice the house has been broken into, call the police and don’t enter the house until an officer arrives. The intruder may still be inside! Yard maintenance Maintain the outside appearance of the house. Keep the yard cut and clean. Trim back trees and shrubs that may block views of the house and provide thieves places to hide. Make sure that you also keep the mailbox from filling up with mail. Newspapers stacking up on the lawn and mail flowing out of the mailbox is an indicator to a thief that nobody is at home. Even though you have stopped bills from going to the house or the past residents have redirected their mail, remember you may still get junk mail that will fill up a mailbox fast. Related Reading: Five Signs Your Tree is in Trouble Lighting A well-lit exterior will discourage thieves from approaching your house at night. Lights should be placed at a height where it’s not easy to disable them and consider using motion detector lights. Lighting the inside of the house is critical too. Using lights on timers in various rooms and radios that come on and go off in the evening may make your vacant home look and sound occupied dissuading potential thieves and vandals. There’s a product out now that looks like a light bulb you would put in standard lamps. It records your usage and replicates your patterns at night gradually turning out lights downstairs and ending with turning out an upstairs light like you would when you go to bed. These lights can also be set up to turn on if the doorbell were to ring, imitating a household being startled awake by a late-night visitor. Board Up the Property When appropriate and required you should board up your property. There are several board-up solutions. The easiest fix might be to send over a handyperson with plywood and long screws, but there are also cage systems, steel shields held in place by special hardware, and even a heavy-duty Plexiglas-type product that allows light in the house. It doesn’t make the house appear boarded up but is strong enough to keep thieves and vandals out. Use the best method available to you that is also compliant with local codes. Remember, insurance policies will often require that vacant houses be boarded up as a security measure. Alarm Systems Posting a sign on the front window or in the yard indicating an alarm is monitoring the house is a great deterrent. Actually having an alarm is better, and I would urge you to get one that works best for you. Some alarm systems and components can be purchased for a few hundred dollars and there are a ton of choices. We found several portable systems that can be moved to another property once a vacant property is rented or from renovation to renovation as you are flipping. Get a system that is flexible, does not require Wi-Fi, and monitoring is set up on a monthly basis. To best protect your vacant properties, layer your security. If you create a security system that consists of the 8 components we addressed today, you will be well on your way to moving a theft or vandalism down the block. These types of losses at vacant or renovated properties aren’t inevitable; it just takes some effort and consistent monitoring by you or your property manager to protect your valuable investment. --- - Published: 2019-08-20 - Modified: 2025-06-26 - URL: https://nreig.com/the-growing-threat-of-a-cyber-attack/ - Categories: Coverage Options - Tags: liability A cyber attack can take many forms, and businesses of all types and sizes are at risk. You may remember one of the worst data breaches on record when in 2017, credit bureau Equifax exposed the personal data and social security numbers of up to 145 million people and cost the company upwards of $700 million in penalties and compensation. That may be an extreme example, but according to a 2018 study by the Insurance Information Institute (I. I. I. ) and J. D. Power, one in ten U. S. small businesses (most with fewer than 50 employees), had been affected by a cyber incident, but only 31 percent of them have cyber insurance. The average loss of these breaches was $188,400. Moreover, half of confirmed data breaches target small business and 60% of these fail within six months of the breach. These types of attacks on small businesses can range in scope and damage; from hacked email accounts, to unauthorized wire transfers and credit card fraud, to personal data breaches and identity theft. Consider these real-life cyber claim scenarios: A residential contractor became the victim of a social engineering attack and wired $35,000 to criminals after receiving fraudulent instructions, believing them to be a vendor. An employee of a professional services firm had a laptop stolen during a work conference. The laptop contained sensitive client information. The computer was password protected but information was not encrypted. The incident cost the firm more than $20,000 in forensics and notification expenses. A restaurant in Washington was notified of a breach by MasterCard due to a high level of fraud committed on customer credit cards who patronized their business. They were required to immediately undergo a forensic examination which totaled $11,646. 90. Six months later, the restaurant was notified by MasterCard that fines of $26,242 for Fraud Recovery along with a Case Management Fee of $8,000 were being assessed. Two months afterwards, Visa assessed a non- compliance fine for $5,000. The restaurant had a total cost of $50,888. 90 due to this breach. Sean Kevelighan, CEO of I. I. I. says "Understanding your business' risks and taking proper precautions means a small business can spend more time charting its progress than responding to unforeseen emergencies. In particular, the growing threat of cyber intrusion on small businesses is growing rapidly. " For this reason, NREIG is pleased to partner with AMWins Cyber and North American Data Security Risk Purchasing Group to offer the Enterprise Pro Cyber Liability Program which protects businesses for the cost of an actual or suspected breach that results in the unauthorized release of protected personal identifiable information (PII). What does cyber insurance typically cover? The cost to respond and recover from a data breach - This includes legal fees and fines or penalties, as well as expenses related to: forensic examination or investigation, data recovery, notification of those affected by a breach, crisis management, and public relations. Recovery of funds stolen electronically or through fraudulent instructions Ransom payment if your computer(s) is/are encrypted Business interruption losses related to expenses or lost revenue resulting from a breached system Why do you need to consider cyber insurance? Almost every business stores or collects sensitive data, and is legally responsible for protecting any information collected. As a landlord or property manager, you may manage tenant leases, background checks and collect rent through an online system. As a lender, you store personal information about your clients. As a flipper, you may pay contractors through wire transfers. Most certainly, you rely on a computer system or network to conduct day-to-day business using email and web browsing. These tools and practices are crucial to profitably and efficiently managing your business, but leave you open to a potential breach. Note: This piece is not to be construed as contractual. Applicable language specific to your policy supersedes it. Information contained in this post is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations and conditions. --- - Published: 2019-07-31 - Modified: 2022-10-31 - URL: https://nreig.com/insurance-coverages-for-vacation-rentals/ - Categories: Coverage Options, Insurance Education - Tags: Airbnb, contents coverage, flood insurance, liability, loss of rents, real estate investing, short-term rental With the growth in the vacation rental market thanks to the explosion of platforms like Airbnb and HomeAway, property owners have found new ways to make money - but it's also raising important questions about the appropriate insurance coverage needed to protect these investments. Keep this in mind: When renting out a home on a short-term basis, a standard homeowners policy likely provides little to no protection for property damage or injuries sustained by a guest. Moreover, a homeowner's policy almost always excludes coverage for those running a business in their home, especially if an insurer claims you are running a hotel or bed and breakfast in the home. For the same reason, many landlord policies do not cover short-term rentals. Types of Coverage You Need When renting out a property to short-term tenants, you should be sure you have the following coverage for that location: Structural: This covers damage to, or destruction of, the property itself that may occur while a guest is staying in the home. Liability: If a renter or guest is injured on the premises of a property you own, and they sue you, liability insurance will help cover your legal fees and penalties. Contents: Unlike a traditional rental unit, a vacation rental is likely fully furnished by you, the property owner. Contents coverage protects your furniture, appliances, and other belongings that may be damaged in a loss. Loss of Rents: This coverage reimburses you after a loss for the income you would have received while the property was uninhabitable. NREIG is now able to offer coverage for vacation rental properties through our residential Insurance Program. This option gives you all the coverages you need, plus the benefits of our program for investors: housing all of your properties on one schedule, monthly payment and reporting, and other endorsements such as Earth Movement, Equipment Breakdown, and Flood. But it also allows you access to aggressively priced liability coverage rated as a rental rather than a hotel. Vacation rentals are a great way to earn a steady income, build wealth through property appreciation, take advantage of tax benefits, and diversify your real estate portfolio. But it is critical to ensure you and your investments are properly insured against unexpected loss. --- - Published: 2019-07-29 - Modified: 2023-10-30 - URL: https://nreig.com/minimizing-water-woes-this-fall/ - Categories: Fall, Seasonal Tips, Water, Weather Events, Winter Storms - Tags: gutters, plumbing, sewer back-up, thunderstorms, water Improper drainage can compromise a property’s structural integrity, including the foundation and sheetrock inside. It can also contribute to basement flooding and roof rot. Water damage can quickly lead to mold growth, which is a health hazard. However, if the soil around your foundation dries out, you could also be in major trouble. Getting water to flow in the right direction at your property can be crucially important in preventing catastrophic damage. Water Issues: Above Ground Keeping your property’s top weather barrier in shape can help eliminate the risk of water damage inside your property. Roof & Attic Using binoculars is a safe way to get a preliminary view of your roof’s condition. If your roof has a steep pitch, you may want to call a professional for an assessment. Look for nail pops, broken or worn-out shingles, and wood rot. You may be able to replace just a few shingles that are curling, buckling, or cracking, but if you have a lot of damage, it may be time for a new roof! Don’t forget to check the flashing around skylights, pipes, and chimneys for gaps or leaks. As for the attic, the underside of your roof will need to be examined, too. Look for sagging areas and stains or dark spots, which could indicate an ongoing leak. Make sure you don’t see any light peeking through. Other potential indicators of roof trouble are cracked paint, wall discoloration, or peeling wallpaper throughout the property’s interior. Gutters You should regularly clean gutters and downspouts. When trees start to shed their leaves, you'll want to clean them even more often. Make sure all property drainage areas are clear of leaves and debris. Once you have removed any visible buildup, flushing the gutter with a garden hose or bucket of water can help you check the flow. Downspouts at the bottom of your gutter system should be at least 3 feet long to direct water away from your foundation. When you check your downspouts, check the grading near your property’s foundation, too. According to the International Code Council, a lot’s grade should fall a minimum of 6 inches within the first 10 feet away from the foundation. Water Issues: Ground Level Foundation In the summer months, the ground can get pretty parched. Even if you started with the perfect slope to shed water away, your dehydrated lawn can pull away from the foundation, causing settling issues, cracking, and even flooding when the area finally does receive a good rain again. When the soil rehydrates, it expands and doesn’t always lift the foundation evenly, which can cause sloping floors, windows, and doors to fit improperly and maybe even broken pipes. Properly planting shrubs and flowers around the base of your foundation can help retain moisture and shade the area to keep it from drying out. Watering the foundation is perhaps the most effective method for alleviating damaging drought conditions. Just be sure to adhere to any watering restrictions in your area. If you notice any signs of foundation issues, call in a foundation repair specialist to assess the damage. Don’t wait, as foundation issues only worsen over time, and repair costs are often excluded by property insurance. Garden Hoses, Sprinklers, and Outside Faucets If it gets below freezing in your area, turning off the valves to the exterior hose bibs and draining the pipes until empty can prevent them from bursting. If you have an in-ground irrigation system, it will need the same attention. Drain and put away garden hoses and sprinklers so they are not harmed by harsh winter weather. To save energy and prevent water pipes from freezing, wrap those that run along exterior walls with heating tape. Pools If you have a pool, be sure you winterize it properly. If you've never winterized a pool, you may want to call in a professional. Ensuring that the pool cover is properly secured will not only keep debris and animals out but is also important to prevent accidental injuries. Plumbing Systems of Vacant Properties VERY Important – Turn off the water and fully drain the plumbing systems at your VACANT properties. This can save you money any time of year, as thieves can cause extensive water damage when they break in and remove copper pipes or other valuable plumbing fixtures. They may only get $200 worth of copper, but damage could easily cost you $10,000 or more in repairs. Water Issues: Below Ground One of the biggest problems with extended heavy rainfall is the backup of sewer drains. Though spring is the typical time to address concerns with sewer lines and septic tanks, ongoing attention to these areas can help you keep a dry basement during summer storms, protecting your HVAC system and water heater. Sewer System & Sump Pumps A sump pump is only useful if it’s in working condition, so keep it well-maintained! Set a regular schedule to remove accumulated dirt and debris and ensure that float and check valves are both moving freely. Portable pumps should be positioned in the lowest part of the basement and connected to a power source. To test your sump pump, pour a bucket of water into the sump pit and ensure the water is pumped out and away from your property; it shouldn’t pool in uneven terrain or run back toward your foundation. Sump pumps eventually require replacement, but a regular maintenance schedule can ensure that you don’t get caught out in the rain, pun intended. Related Article: Do You Know the Difference Between Flood, Water Damage, and Sewer Back-Up? Window Wells If you have below-grade basement windows, installing window well covers can help keep out rain, leaves, and pests. Choosing a clear acrylic cover will allow light to enter. Just be sure they fasten securely to your home’s foundation. There is a lot to keeping your property, especially the drainage, in good condition, so to make it easier, we have summarized our top maintenance items in our seasonal checklists for you. For this... --- - Published: 2019-06-25 - Modified: 2023-03-13 - URL: https://nreig.com/reduce-your-risk-of-mold-after-a-flood/ - Categories: Floods, Water, Weather Events - Tags: flood, flood insurance, mold With many parts of the country experiencing significant flooding this spring and summer, we wanted to share some tips on how to reduce the risk of mold after a flooding event. If not caught within 24-48 hours, you can have a serious mold problem on your hands. Here are some mold prevention tips to help you and your tenants after a heavy rain event. Step 1: Remove the water Remove any standing water. It is a health hazard anywhere in the building. This can be done using a water pump. Step 2: Remove moisture The next step in the mold prevention process is a combination of extraction, drying, and dehumidification to remove trapped moisture. Health risks caused by mold can be severe: Allergies, neural and respiratory diseases as well as chronic conditions such as asthma, neurological conditions, or eye infections can occur. Tip 1 The quicker a property is dried out, the more materials and contents can be saved. Tip 2 Always wear gloves, eye protection, and masks when handling mold-contaminated materials. Tip 3 How to handle various materials damaged by flood water: Any porous or consumable item that has come into contact with flood water will need to be disposed of properly. This includes cardboard, carpet, padding, stuffed animals, upholstered furnishings, mattresses, box springs, and paper products including books and magazines. Food and clothing items in contact with or stored in areas with contaminated water or mold should be thrown away. Materials that have a solid surface such as plastic, glass, or metal should be cleaned and disinfected. Soap and water are a simple, yet effective cleaning method. Appliances that have been exposed to water or mold will need to be replaced. Appliances that have mold exposure but have not been underwater may be saved with a professional cleaning. Forced air furnaces can distribute mold throughout an entire home. Furnaces and ductwork should be cleaned as a part of any professional mold remediation process. Don’t fall victim to scammers! When an area gets hit with widespread flooding there is always a risk that unscrupulous contractors may show up to take advantage of people. To avoid this, take the following steps: Get at least three bids on identical itemized work orders. Demand proof of insurance and call the contractors’ insurers to confirm coverage. Check that the contractors are licensed through your state’s board of licensing (if applicable). Don’t cave in and agree to a large down payment, which a reputable contractor won’t demand. Get guarantees and contracts in writing, and don’t agree to pay cash. The most important thing to remember if your property gets damaged by water is to dry it out as soon as possible. If you take that one precaution, you should be able to keep mold growth at bay. For more on mold and the effects it may have on your insurance coverage, read Is it Covered? Mold, Mildew, & Fungus. --- - Published: 2019-05-29 - Modified: 2025-07-29 - URL: https://nreig.com/what-to-do-after-the-storm/ - Categories: Seasonal Tips, Spring, Summer, Tornadoes & Thunderstorms, Water, Weather Events - Tags: flood, mold, severe weather, tornado, water, water damage Tornadoes, high winds, and severe storms can strike with little warning, leaving a trail of destruction behind. While you can't prevent extreme weather, you can take mitigative steps following a storm to reduce the risk of further damage. Heed the following tips to prevent a bad situation from getting worse. What to do after a tornado or extreme storm First, know that you, as an insured, have a contractual duty to prevent further damage when a loss occurs at your property. Check the section of your policy labeled “Duties in the Event of a Loss” for your specific responsibilities. The items contained in that section are very sensible and reasonable, so don’t worry that you will find surprising requirements or be asked to do anything that any prudent person wouldn’t do in the event of a loss. Some examples might include securing the property from unlawful entry after high winds and flying debris damage doors and windows or putting a tarp on a roof that has been compromised by tree damage. In any type of loss, you will usually be required to: Contact your insurance company in a timely manner to inform them of the loss. Contact the authorities when appropriate. If a crime has been committed, file a police report. In the event of a fire, file a fire report. Take photos and/or videos of the damages. Make any necessary temporary repairs to prevent further damage to the property. Set aside any damaged materials for an adjuster to examine. Save all receipts from any temporary repairs made. Get an estimate from a reliable contractor (obtaining several is advisable). How to avoid additional loss after a storm When it comes to the aftermath of storms, there are usually two main types of damage: (1) damage to the property itself, such as broken windows, lifted or missing shingles, or holes in the roof, and (2) water. Quickly secure the property with tarps or plywood, covering areas where additional rain could enter the structure. This will help prevent further water damage and discourage thieves looking for easy access points to the property. Any water damage can cause mold to grow rapidly, so you will want to act immediately to get wet items dried out. Bring in fans, put furniture on blocks, and remove area rugs from the floor. Advise tenants to clean clothing, linens, and other washables that have been soaked as soon as possible. Be mindful of electrical appliances if the carpet or flooring is wet, as these can be shock hazards. If the water damage is the result of a flood, beware of dislodged materials from your property, such as nails. Lastly, rats, snakes, and other “creepy crawlies” may attempt to seek shelter in your property after a flood, so beware! Be aware of scammers Unfortunately, unscrupulous people are looking to take advantage of those who have just suffered a loss, especially after natural disasters. You may not be able to avoid a storm, but if you are on your guard, you could avoid becoming a victim in the aftermath. The Oklahoma Insurance Department recommends the following when hiring service providers after a disaster: Always be present when someone inspects your property. Companies may try to take advantage of you and your insurance company by causing additional damage to increase the repair cost. Never pay a repair bill in full until the work is completed according to your contract with the provider. Anyone who offers to get you more money for your insurance claim warrants additional caution. Always hire an established, licensed, and fully insured company. Check the references they give you. Reputable contractors should be able to provide you with their certificate of liability insurance. If they have employees, they should also carry Workers' Compensation coverage. To help ensure coverage is in force while the contractor is working for you, you can ask to be added as an additional insured on their policy. If the policy lapses or is canceled, you should be notified. In most cases, there is no fee to get you added to the policy. Written estimates should include a detailed breakdown of the type and quantity of materials as well as hours of labor needed to complete the job. Please note: Your signature is NOT required to receive an estimate. Some scammers may use this tactic to trap you into signing a contract. A formal repair contract should include approximate start and completion dates, as well as payment procedures. It also should guarantee that the contractor will secure any necessary permits. Thoroughly read any warranty and ensure you are aware of any conditions that would void it. A bid that is substantially lower than other bids for the same scope of work is usually missing something significant. Review all bids carefully to ensure there aren’t items missing or unnecessary items added to the scope of work. High-pressure tactics can be a red flag. Don’t let the heightened stress following a loss cause you to rush the process of hiring a quality service provider. Board up the Property Properly boarding up your property when a storm compromises entry points like windows and doors can help deter thieves and vandals. Find reliable board-up tips from the United States Fire Administration. Fight Mold Mold can set in very quickly when a property has sustained even small amounts of water damage. The EPA has a whole guide covering the causes of mold, cleanup guidelines, and mold prevention and control tips. Stay Prepared, Stay Protected Being informed and taking the right steps can help protect your property, reduce out-of-pocket costs, and ensure your insurance coverage remains intact following storm damage. Review your policy before disaster strikes, and talk with your Client Service Advisor about steps you can take to be storm-ready year-round. --- - Published: 2019-05-28 - Modified: 2023-06-26 - URL: https://nreig.com/summer-maintenance-checklist/ - Categories: Checklists, Seasonal Tips, Summer - Tags: checklist, gutters, maintenance, roof, Seasonal Checklist, smoke alarms, summer, sump pump, trees, water heater We created our seasonal checklists to help you stay on track each season. This time we are sharing our summer maintenance checklist. Using them can help you avoid common (and costly) risks at your properties such as injuries caused by unstable decks and damage caused by dead trees. If you haven’t already, be sure to change those smoke detector and carbon monoxide detector batteries. Routinely cut the grass and trim back plant overgrowth & overhanging tree limbs Summer plant growth can damage your property from its roof to the foundation. If left unattended, vines and roots can cause trip hazards. Keeping yards tidy and free of trash may also help prevent theft, vandalism, and squatters. Set a regular maintenance schedule for your roof, gutters & downspouts Replace damaged or worn shingles. Significant rain, debris, and wind can loosen gutter spikes, ferrules, or brackets. Keep debris from accumulating in gutters and be sure downspouts drain away from the foundation. Inspect your siding for evidence of termites & other infestations - treat accordingly Make sure that doors and windows have a tight seal, and fill any cracks. If you see any signs that animals are taking up residence in your property, call the appropriate professional before any problems get out of hand. Rinse off any build-up of debris from around your air conditioner compressor Check hoses for leaks, and make sure everything is draining properly. Clean or replace your HVAC filter every month. Check the soil around your property's foundation Most property policies exclude coverage for foundation damage. Watering the foundation or properly installing planting materials are two methods of alleviating damaging drought conditions. Inspect your deck and make any necessary repairs Replace any broken or weak deck boards, and inspect handrails and grab bars to prevent injuries from falls. Sharp edges, splintered or rotting wood, rusted nails, or nail pops can also be a liability hazard. Bring swimming pools and spas up to current municipal standards A safe pool has a fence around the perimeter with self-closing and self-latching gates, anti-entrapment drain covers, the water depth clearly marked on all sides of the pool deck, and all safety equipment (life preservers, poles, etc. ) in good working condition. Check local municipal guidelines for additional safety standards. Make sure your multipurpose fire extinguisher is full & properly pressurized Store the extinguisher in an accessible location and follow the manufacturer’s instructions for routine maintenance. Remind tenants to inspect grills and make sure they are in good working condition Check gas grills’ burner jets for clogs and obstructions, and make sure that hoses are secure. Clean charcoal grills of ash, and make sure they are free of grease residue. Tenants SHOULD NOT use grills on wood decks! Warn tenants about fireworks - leave the show to the experts The U. S. Fire Administration reports that more fires are reported on July 4th than on any other day of the year. Sparklers burn at 1,200 degrees, which is hot enough to cause third-degree burns. Warning tenants about the danger of fireworks may save your property from a fire and your tenants (and their loved ones) from serious injuries. Downloadable Summer Maintenance Checklist --- - Published: 2019-05-24 - Modified: 2023-08-28 - URL: https://nreig.com/hurricane-preparation-tips/ - Categories: Fall, Hurricanes & Storm Surges, Seasonal Tips, Summer, Water, Weather Events - Tags: fall, FEMA, hurricane, named storm, safety, spring, summer Though hurricanes often come with some warning, preparing your properties and tenants well in advance is of the utmost importance. Natural disasters don’t wait on humans to be ready to respond. Being ready can help lessen the stress of an emergency situation. Heeding the tips below could save you thousands of dollars or may even save a life. For more hurricane tips, read Hurricane Recovery Tips & Resources. Hurricane Season The Atlantic hurricane season runs from June 1 to November 30, with the peak occurring between mid-August and late October. The Eastern Pacific hurricane season begins May 15 and ends November 30. While these are the common seasons for cyclones, storms can occur at any time of the year, even as early as April, for example. How to prepare your property Be sure trees and shrubs are well-trimmed so they are more wind resistant. Secure loose gutters and downspouts and clear any clogged areas or debris to prevent water damage. Retrofit to secure and reinforce the roof, windows, and doors. Garage doors should also be braced. Move indoors any exterior furniture, yard ornaments, or play equipment that could act as a dangerous projectile. Cover all windows. Permanent storm shutters offer the best protection. A second option is to board up windows with 5/8” marine plywood, cut to fit and ready to install. Tape does not prevent windows from breaking. If you have staged a property with valuable items, such as rugs or art, move them away from windows and to the upper floors if possible. Be sure the battery backup for your sump pump is working to prevent drain backups. Purchase a portable generator for use during power outages. Remember to keep generators and other alternate power/heat sources outside, at least 20 feet away from windows and doors, and protected from moisture; and NEVER try to power the house wiring by plugging a generator into a wall outlet. Consider building a FEMA safe room or ICC 500 storm shelter designed for protection from high winds and in locations above flooding levels. Download the Investor Hurricane Preparation Checklist. Hurricane Preparation advice for your tenants If local authorities advise to "shelter in place," tenants should go inside as quickly as possible. Close and lock all windows and doors, shutting any storm shutters. If flood waters rise to dangerous levels, go to the highest level of the building and call 911. Do NOT climb into a closed attic as you may become trapped. In case of high winds, go to a small, interior, windowless room on the lowest level. Continue to listen for current emergency information and instruction. Have on hand adequate supplies (including water for several days) in case they lose power or are unable to leave due to flooding or blocked roads. Have enough supplies for your household, including medication, water, nonperishable foods, and pet supplies in a to-go bag you are able to grab quickly. If advised to evacuate, do so immediately. Do NOT drive around barricades. Stay off bridges over fast-moving water. If in a mobile or manufactured home, GET OUT and go to the nearest shelter. Do NOT walk, swim, or drive through flood waters. If you or your tenants have evacuated the area, STAY PUT. Do NOT go back to the affected area until local authorities advise it is safe to return. Tenants should be sure cell phones are fully charged. Fill the car's gasoline tank in case evacuation becomes necessary. Stay informed by listening to or watching local broadcasts or by using the FEMA Mobile App. Hurricane Safety Tips from FEMA: https://www. ready. gov/hurricanes Download the Tenant Hurricane Preparation Checklist. 6 General Disaster Preparedness from Ready. gov Review your insurance policy and require tenants to carry renter’s insurance to protect their belongings. Named Storm (Tropical Storms/Hurricanes) coverage and Flood coverage are both purchased separately, so check with your agent to make sure you are covered appropriately for your area. Consider providing basic supplies for an emergency preparedness kit in your welcome packet, including a flashlight, batteries, and first aid supplies. Tenants will also need medications and copies of critical information if/when they need to evacuate. Share resources to help tenants make an emergency plan including an evacuation plan and a communications plan. Connect tenants with local emergency management agency contact information with tenants. Make a plan for contacting tenants in the event of an emergency. Be sure they know how to best contact you or your property manager during an emergency too. During the event, stay tuned to your phone alerts, TV, or radio, for weather updates, emergency instructions, or evacuation orders. In any emergency, always follow the instructions given by local emergency management officials. Advise your tenants to do the same. Many communities have text or email alerting systems for emergency notifications. To find out what alerts are available in your area, search the Internet with your town, city, or county name and the word “alerts. ” NOAA Weather Radio, commercial radio, and television newscasts are several other reliable methods for obtaining the latest information. --- - Published: 2019-04-29 - Modified: 2025-10-24 - URL: https://nreig.com/rehabbing-safely-this-spring/ - Categories: Seasonal Tips, Spring - Tags: construction, contractor, general contractor, new construction, renovation, safety, spring, summer When rehabbing properties, the construction phase stands out as one of the riskiest parts of the project. Minimizing the risk of a severe injury during this phase is key to retaining your profit and protecting your business. Whether you are a do-it-yourselfer or hire an experienced general contractor, a quick walk around the premises can tell you if operations are safe or not. To do so, you will need some basic knowledge about what injuries are common in construction and the markers of a safe job site. Common Types of Construction Injuries It may not surprise you that the U. S. Board of Labor Statistics reported construction as the #1 industry for fatal work injuries in their most recent report (2022). That year there were 1,069 fatalities. Hundreds of thousands of non-fatal injuries also occur in the construction industry each year. So, what are the most common types of injuries? OSHA’s “Fatal Four” Many of you may be familiar with or have at least heard of OSHA, the Occupational Safety and Health Administration. Congress established the organization in 1970 to “assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education, and assistance. ” Their “Fatal Four” are the most common types of fatal construction injuries: Falls- about one-third of construction fatalities Struck by Object or Vehicle- one-quarter of struck-by-vehicle fatalities involve construction workers Electrocutions- about 250 electrical-related fatalities occur each year Trenching and Excavation- the fatality rate for excavation is 112% higher than for general construction Common Non-fatal Injuries on the Jobsite Because construction is such physical work and involves many types of tools and equipment, the potential for non-fatal injuries is high. There seem to be an infinite number of ways one could be bruised, pinched, cut, etc. To name just a few, non-fatal injuries on the job site are often caused by: Hand & Power Tools- Hammers, screwdrivers, nail guns, saws, sanders, blow torches, utility knives Heavy Equipment- Dozers, forklifts, boom lifts Pollution- Asbestos, lead, drywall dust, sawdust, fumes, latex paint Noise- Loud saws, sanders, drills, and other power tools Flammable Liquids/Materials- Stain, paint, paint thinner Slips/Trips/Falls- Slick or uneven surfaces, stairs, ladders, cluttered job sites Lifting heavy objects- Boxes of tile, bathtubs, cabinetry Repetitive motion injuries- Being on your knees while installing flooring, sanding, loading, and unloading materials Cuts and puncture wounds from materials laying around the job site- Sheet metal, nails Concussions from falling objects Job Site Safety Basics Keeping a busy job site tidy while rehabbing properties can be a challenge. Tight deadlines can also tempt workers to forego safety measures to stay on schedule. Getting too comfortable with heights or power tools can have severe, sometimes fatal, consequences. On the flip side, a clean, safe job site can increase efficiency, maximizing your potential profit. Personal Protective Equipment Dressing appropriately for the type of work you’ll be doing is important for any type of job. Personal Protective Equipment (PPE) is an integral part of any rehabber’s uniform for keeping themselves safe. PPE includes: Eye & Face Protection- Safety glasses, face shields, etc. Foot Protection- Work shoes or boots with slip-resistant and puncture-resistant soles, safety toes made from a composite material (metal toes can still be crushed and shear off toes) Hand Protection- Gloves with the correct fit and right for the job type (paint/stain, chemicals, rough surfaces, handling boards with nails) Head Protection- Hard hats if in danger of falling objects from above; hard hats should have no dents, cracks, or deterioration and should be replaced after a heavy blow or electrical shock Hearing Protection- earplugs or earmuffs in high-noise applications Joint Support- Knee pads, back or knee braces, and tool belts with suspenders to take the weight off the back and hips Headlamp- Adequate lighting for your workspace to help avoid slips, falls, or other injury Housekeeping on the Jobsite Probably the easiest and most important task to prevent injuries on the job site is keeping the worksite clean and free of hazards. Not keeping a clean job site can lead to: Damage to tools and equipment, materials, and the structure of the house Loss of production- Cleanliness and organization help efficiency Fire hazards Physical injuries such as cuts, bruises, sprains, breaks, eye injuries, etc. You will need a plan for How trash and construction debris is removed How materials will be stored How tools will be organized and stored when not in use Job Site Cleanliness Tips Store all tools and materials not in use in their proper place Clean up messes in a timely fashion- Clean as you go Keep walkways and driveways clear Be aware of common trip hazards- Electrical cords, air hoses from compressors, unfinished transitions between floor surfaces, uninstalled materials, tools that are in use, etc. Work as a team to keep the job site clean and safe Weather Considerations As the weather begins to warm up, heat-related illness can sneak up on workers if they are not mindful of the weather conditions they will be working in throughout the day. Heat exhaustion is not usually life-threatening, but it can lead to dizziness, headaches, and fatigue which may make a worker more susceptible to other injuries. Heat stroke can make you lose consciousness, and puts strain on your heart and blood vessels, increasing the risk of heart failure or stroke. To help beat the heat while rehabbing properties, here are some tips: Dress for success with the 3 L’s: wear Lightweight, Light-colored, Loose clothing (still being mindful of anything that could get caught in machinery) Use sunscreen Drink fluids continuously throughout the day- Water is the best and other drinks that support electrolyte balance are good as well If possible, build up to longer periods of sun exposure gradually. Try to stay in the shade from 10 am-3 pm when the heat is the most intense and choose a place in the shade for any outdoor workstations Be in the know- Water, concrete, and sand reflect the... --- - Published: 2019-03-30 - Modified: 2024-09-16 - URL: https://nreig.com/spring-maintenance-checklist/ - Categories: Checklists, Seasonal Tips, Spring - Tags: fire extinguisher, maintenance, Seasonal Checklist, smoke detectors, spring, sump pump, water heater We created our seasonal checklists to help you stay on track each season. Using them can help you avoid common (and costly) risks at your properties such as injuries caused by unstable decks and damage caused by dead trees. Keep reading for our spring maintenance checklist or download the pdf below! Check for damage to your roof and clean gutters & downspouts Cracked, buckled, or loose shingles need to be replaced along with those missing any granules. Keep debris from accumulating in gutters, eliminate sags and dips, and be sure downspouts drain away from the foundation. Remove dead trees from the yard; trim healthy trees & bushes back from utility wires Hire a licensed and insured professional to trim dead branches and cut down large trees. In addition to preventing damage to the house, a clean yard deters thieves. Repair cracked, broken, or uneven driveways, walkways, and stairs Replace any broken or weak deck boards and inspect handrails and grab bars to prevent injuries from falls. Sharp edges, splintered or rotting wood, rusted nails, or nail pops can also be a liability hazard. Inspect your smoke & carbon monoxide alarms; one should be installed on each floor Test alarms monthly. Change the batteries twice a year or more frequently as needed. Ensure tenants do not disconnect or remove the alarms. Make sure your multipurpose fire extinguisher is full & properly pressurized Store the extinguisher in an accessible location and follow the manufacturer’s instructions for routine maintenance. Repair electrical outlets that have frayed wires or loose-fitting plus as they are potential fire hazards Be sure outlets, breaker/fuse boxes and extension cords are not overloaded. Clean the space under the dryer & the dryer exhaust duct; check the washer supply lines Remove all lint, dust, and pieces of material as these are a leading cause of fires in the home. Inspect washer supply lines for any necessary replacement. Have your air-conditioning system inspected and ducts cleaned by a professional Check hoses for leaks, and make sure everything is draining properly. Clean or replace your HVAC filter on a monthly basis. Check your water heater for leaks and rust; if this damage is found, you may need to replace it Follow the manufacturer’s instructions on draining to remove sediment that can shorten its life. Test your sump pump to be sure it comes on when water is poured into the sump pit Install a battery backup pump as “insurance” against water damage. Downloadable Spring Maintenance Checklist --- - Published: 2019-03-26 - Modified: 2024-11-04 - URL: https://nreig.com/top-4-myths-about-renters-insurance/ - Categories: Insurance Education, Tenant Relations - Tags: landlord, rental property insurance, renter's insurance, tenant protector plan Get the truth about one of the most valuable policies around. Renters' insurance is an often-forgotten coverage that is surprisingly valuable to both tenants and landlords alike. Did you know that, according to the U. S. Census Bureau, rented units make up approximately 36. 9 percent of occupied housing? They also report that nearly a quarter of the 100 largest U. S. cities have changed from homeowner to renter-majority between 2006 and 2016. Lastly, a poll conducted in 2016 by the Insurance Information Institute found that only 41 percent of tenants have renters insurance – compared to 93 percent of insured homeowners. Most renters are putting their valuables and financial standing at risk when they could be covered for a very low cost. At the same time, landlords who do not emphasize the importance of renters insurance to their tenants (including it as a requirement in the lease, for example), may unnecessarily put themselves at risk for damage done by their tenants or injuries that occur on the property. Let’s dispel the myths and highlight the true value of this powerful little policy. Myth#1: The landlord’s insurance policy covering the property will also cover the tenant’s possessions. False: Property insurance will cover damages to the building itself and bodily injuries due to negligence of the property owner. It does not cover the replacement of the renter’s furniture, clothing, electronics, etc. However, renters insurance does cover a tenant’s belongings. Myth #2: Renters insurance is expensive. False: Renters insurance is actually very affordable. Policies typically cost between $15 and $30 per month depending upon the coverage limits, the National Association of Insurance Commissioners reports. Tenants can typically get multiline discounts when they add a renters policy to their auto coverage. Myth #3: Most renters don’t own items expensive enough to warrant coverage. False: The cost of everyday items such as furniture, clothing, and appliances can add up very quickly if they are destroyed by a fire and need to be replaced at the same time. In addition, many people in the United States typically own a TV, computer or laptop, and cellphone. It is very easy for the average person to own at least $20,000 worth of “stuff. ” Plus, renters insurance can protect the tenant’s belongings if a theft occurs away from home. Many policies also protect against stolen or forged checks or stolen credit cards. Myth #4: Renters insurance only covers a tenant’s possessions. False: Renters insurance covers much more than just personal property. Most policies also include up to $100,000 in liability coverage. That $100,000 can protect tenants if they accidentally damage someone else’s property or are responsible for another person’s injuries. As the security deposit may not be enough to cover the cost of a larger loss, this liability coverage can give landlords an added layer of protection if their renter unintentionally damages the property. Common risks for rental properties also include dog bites and injuries to guests. If the tenant is held liable for an incident, renters insurance can help pay medical bills and protect the landlord from excessive lawsuits. Instead of leaning on the landlord’s policy as the primary coverage, the tenant’s policy may be able to cover the damages, acting as a first line of defense. What does a renters policy actually cover? Main Coverages: Policies may vary, but typical coverages include Fire and Smoke, Lightning, Vandalism, Theft, Explosion, certain types of Water Damage, and Liability. Personal Property: This may have limits based on a single item or a group of items. i. e. $1,000 limit per jewelry item or a total limit of $1,000 for all jewelry. Typical Deductibles: $500; $1,000; $1,500; $2,500; $5,000. (The higher the deductible, the lower the premium. ) Additional Living Expense: Reimburses the tenant for reasonable increases in living expenses if the damage makes the property uninhabitable. This may include the costs of a hotel, food, and other expenses. Many landlords end up paying out-of-pocket for this expense when a renter doesn’t have coverage. Guest Medical Protection: Helps pay for medical care for a guest injured in an accident at the property. Expenses can include X-rays, surgery, and dental work, to name a few. Extended Coverages: Purchased additionally, extended coverages increase limits for items like jewelry, watches, and furs. These are often called “floaters” and availability varies by insurer. Scheduled Personal Property: Increases limits for specified items such as cameras, antiques, recreational equipment, and the like. Identity Theft Restoration: Protects a tenant against the costs of legal work, phone calls, and lost wages due to identity theft. Business Property: Covers items that a renter keeps in his or her home as a business sample. Exclusions: Damage the tenants do to their own property or belongings. Flood, Earthquake, and Sewer Back-up are typically purchased separately. Some policies may have additional exclusions. NREIG's Alternative to Renters Insurance for Investors As I mentioned previously, it is very easy for a tenant to obtain renters insurance. One of the most economical ways to go about it is to add the coverage to an existing auto policy. For landlords having difficulty obtaining proof of renters insurance from their tenants, we have a product called the Tenant Protector Plan® (TPP). This coverage can act as a “first line of defense” to protect the property owner if the tenant accidentally damages the property. To be clear, it is not renters insurance, but its similar coverages offer a layer of liability up to $60,000 or $100,000 for tenant-caused negligent losses, and contents coverage up to $10,000. Perhaps the most unique feature of the TPP is the inclusion of a $1,000 limit for Skip Rent should the tenant vacate the property unexpectedly prior to the end of their lease term. The coverage is underwritten by an A. M. Best A-rated carrier. Contact your CSA for more information or to add the TPP to your locations. Benefits for renters and landlords alike As you can see, there really is no reason for a tenant not to have renters insurance.... --- - Published: 2019-03-26 - Modified: 2025-06-17 - URL: https://nreig.com/solving-the-most-common-issues-with-rentals/ - Categories: Fire, Insurance Education, Investing Tips, Tenant Relations, Water - Tags: cooking, fire, liability, mold, smoke alarms, vacation rentals, water Rentals can be a great source of income, but if they aren’t managed well, tenants can significantly damage the physical asset or someone could be injured. Thankfully, through prudent planning and follow-through, you can mitigate your risk. How do you solve the most common rental issues? Knowing Your Risk and Taking Action The first step to making any risk mitigation plan is to become familiar with your risk. Then, once you know your risk, you can take action to minimize it. The goal today is to start the wheels turning so that you can then create a mitigation plan that works best for your specific portfolio and business model. For example, some of you may manage your own rentals while others employ property managers to do many of the tasks we will discuss. The list below is a fairly comprehensive representation of typical losses we see at rental properties and a few suggested remedies. Let’s jump in. Issue #1: Fires The costliest property damage we see results from fires. A small fire can quickly escalate, engulfing the entire structure, and leading to a total loss. Here are some of the most common causes of fires in investment properties: Unattended Cooking – The National Fire Protection Association (NFPA) reports, “cooking equipment is the leading cause of home structure fires and home fire injuries. ” These fires most often occur when the cook gets distracted and leaves the kitchen to attend to something in another room. In one instance, a tenant left the home completely to visit a neighbor several doors down. When they returned, the property was engulfed in flames. Thankfully, no one was injured, but this event could have been prevented had the cook just stayed in the kitchen. Heating Fires – Heating equipment is the “second most common cause of home fire fatalities,” says the NFPA. Space heaters can be very useful, but if they are older or not used appropriately, they can easily start a fire. The peak months for home heating fires are December, January, and February, but may still be a threat in other months outside of that timespan for climates that experience long winters. Space heaters should always be plugged directly into an outlet, should be at least 3 feet from anything that can burn, and should turn off automatically when tipped over. Cigarettes – Smoking is the "leading cause of home fire deaths,” reports the NFPA. Most often, these accidents occur when someone is smoking inside the house; many incidents involve a person falling asleep on the couch or in bed, cigarette in hand. If you haven’t considered banning smoking in your rentals, this may be a good time for a policy change. Important Equipment: Smoke Alarms, Carbon Monoxide Detectors, and Fire Extinguishers The importance of having these items in constant working order cannot be overstated. Working smoke alarms cut home fire deaths in half. (NFPA) Carbon monoxide (CO) detectors are also key because of the nature of CO’s properties; it is often known as the “silent killer” because it is colorless, odorless, and tasteless. Installing interconnected alarms is recommended by the NFPA because when one alarm sounds, they all sound, alerting the occupants no matter where they are in the house. Alarms and detectors should be tested monthly and standard batteries should be changed at least twice a year – Daylight Savings is a good time to do this. Some newer alarms also come with 10-year batteries, but they still need to be tested regularly. The detectors themselves will also need to be changed out periodically – the typical life of a detector is 10 years but check the manufacturer’s instructions. Smoke alarms and CO detectors are often required by city code and many insurance policies require them to be installed for coverage to be available when a fire occurs. Fire extinguishers can help put out small fires before they become uncontrollable, so providing them in your rentals is a must. Educate tenants about their use prior to move-in. There are five classes of extinguishers, but ABC or BC are multi-purpose and can put out a variety of fires. StoveTop FireStop is another inexpensive fire suppression device that can help put out a stove top fire before the cook has time to grab a lid or standard extinguisher. Issue #2: Water Damage The most frequent losses reported in our insurance program involve water. These can include: Burst Pipes – During the winter and spring thaws, we often see an increase in reports of water damage from burst pipes. Weather can be punishing on both the exterior and interior of your property. Heating the house properly, keeping faucets at a slow drip during cold snaps, and having tenants alert you or your property manager prior to leaving town can help minimize the probability of this type of loss from occurring. Slow Leaks/Mold – Slow leaks can cause some of the most invasive damage including wood rot and mold. This kind of damage creeps up on you over time, and coverage isn’t typically available because slow leaks aren’t “sudden or accidental. ” Mold and fungus are also typically excluded from property coverage forms across the industry, and mold remediation can be costly. In warmer temps, mold can grow rapidly, so it is imperative that your tenants know to report leaks and mold damage immediately. Clean-up should begin as soon as possible to minimize damage to your sheetrock, framing, and flooring. Toilet Back-Up – When the kiddos decide that it’s a fine day for Quacky the stuffed duck to go swimming in his “pond”, you may end up with a big mess in the bathroom. Emphasize to tenants that repeated calls of this nature will come with a maintenance fee tacked onto their monthly rent. Issue #3: Wear-and-Tear Addressing wear-and-tear is important because it is inevitable and an industry-wide exclusion. You will either need to add a line item for repairs into your business model, recoup the cost of repairs from the security deposit or recover... --- - Published: 2019-01-29 - Modified: 2023-09-21 - URL: https://nreig.com/stop-ice-damage-by-doing-2-things-at-your-property/ - Categories: Seasonal Tips, Weather Events, Winter, Winter Storms - Tags: ice, trees, weather, winter The cold, hard fact is ice is NOT nice to properties. It can bust open your plumbing system, cause trees to topple over, and even make your roof collapse. Because most of the U. S. experiences freezing temperatures, it’s imperative to brace your investment against the harsh fall and winter weather. You can greatly reduce your risk of ice damage by doing these two things: 1. Turning off the water at vacant properties. At the very least, shut the water supply off in the house itself. That way, if a pipe bursts, the amount of water will be limited to what is currently in your plumbing system. Better still, shut off the supply at the street and drain the system. If you don’t feel comfortable winterizing your property, it’s a relatively simple job for a professional. Set the heat to no lower than 55 degrees. (Set it even higher during extreme cold snaps or if your property is in a northern region. ) 2. Trimming tree limbs and removing dead trees. You may have a tree problem if you see: Trunk damage: Peeling bark, gaping wounds or vertical cracks are all indicators of structural weakness. Smooth areas without bark can indicate a tree’s health is on the decline. Bare branches: Leaves that don’t come back in the spring or fall before autumn can be a sign of disease or lack of moisture. Also, watch for cracked stems or branch forks; tight, V-shaped forks are more prone to failure than open U-shaped ones. Damaged roots: A sudden and noticeable lean to the tree is a sign of serious root damage as are small branches sprouting from the trunk at the base of the tree. Also, watch for heaving soil at the base of the tree. Fungus: shelf or bracket fungus on the trunk or branches can indicate that your tree is rotting internally. Mushrooms may also grow in areas just above the root system, indicating root decay. These can pop up around the base and out into the lawn. Standing water: A tree’s health can be compromised by poor drainage – too much water could actually be a bad thing. Consult a professional if you notice any signs of trouble with your trees. They can help you determine if a tree can be saved or if it will need to be removed, and if so, remove it safely. To find an arborist in your area, call TCIA at 1-800-733-2622 or run a ZIP code search on treecaretips. org. ISA-certified arborists can be found through a search tool at isa-arbor. com. What About Insurance? Does property insurance cover damage caused by a burst pipe or a fallen tree? For a further discussion on insurance, check out the following articles: Is It Covered? – Burst Pipes Is It Covered? – Snow, Ice & Sleet Paying attention to these two crucial areas and taking preventive measures can save you time, trouble, and safeguard your ROI. --- - Published: 2018-05-15 - Modified: 2023-09-21 - URL: https://nreig.com/why-you-need-to-know-your-propertys-claims-history/ - Categories: Insurance Education, Investing Tips - Tags: claim, loss history Myth: A claim that occurred before I owned the property should affect my insurance rate. How great would this be? Not having to pay for the “sins” of the past owner(s). Well, believe it or not, up until about 5 years ago, this was the case. Anyone could go and purchase a new investment property without having to research or provide any details regarding past insurance claims to the new insurance company. Unfortunately, for everyone, insurance carriers are all becoming like “Big Brother” and are sharing information. It is now on you, as the potential buyer, to complete your due diligence and provide accurate loss information to them for the past three to five years, depending on the specific carrier requirements. Let’s Take a Look So, you are picking up your first investment property and you call your agent, get a quote, and bind coverage prior to closing. You think you are all squared away, until 30 days down the road, you receive a notice from your insurance carrier stating either: They are canceling your policy because your previous loss history was not disclosed to them. They will agree to stay on risk but your annual premium is increasing from $500 to $1,500 due to the increased exposure. The point of the example is to do your due diligence prior to purchasing any property or location, so you know exactly what you are purchasing. How do we go about obtaining prior insurance loss history on a location I am considering purchasing? If you are purchasing the property from the current homeowner, you will need to obtain a C. L. U. E. , Comprehensive Loss Underwriting Exchange, report. You can purchase one of these reports from LexisNexis - a data collection company - for $10 to $12 per report. This report will provide you with the prior insurance claims filed at the property, the type of claim, and the approximate total payout. If you are purchasing the property from another investor, and the property is already being used as an investment property, you need to ask the seller to obtain a Loss Run report from the insurance carrier on risk. The seller will have to get this report from their insurance agent or current insurance carrier. This typically takes two to four days to receive. This report shows the same loss information as a C. L. U. E. report does and gives you a great idea of the claims history of the property and what you can expect moving forward. Things to look for on C. L. U. E. and Loss Run reports are: Both frequency and severity of losses are looked at as the same by most carriers. Several nickel-and-dime type losses or one catastrophic loss could both be looked at as high risk. Controllable losses are looked at very differently than “Acts of God. ” This means fires, specifically tenant-caused fires, theft, and water damage are looked upon negatively as compared to a wind or hail loss or even a lightning strike. Look carefully at locations that have suffered flood losses. These locations are prone to suffering these types of losses again. And once a flood occurs and a claim is paid, it is both difficult and expensive to obtain this coverage on future properties. It also makes it much more difficult to sell the property in the future if there is a history of flood losses. If liability losses are present, look at the cause of loss and consider if the same tenant is living at the property who caused the claim. These are just a few of the items you need to strongly consider when reviewing the claims history at a location in question. If you are still sold on purchasing a location that has some negative loss history and you are experiencing difficulties with purchasing affordable insurance coverage, consider the following. Requesting a higher deductible for your entire policy or at least for the perils that have been loss issues for the past owner. For example, if frozen and burst pipes have been an issue in the past, request a higher deductible for that specific peril. If the past loss had a payout of $8,000 then request a $10,000 deductible for that peril, if financially it makes sense for you. This will offset the risk and “cover-up” the loss altogether. Do not jeopardize your business by taking on a higher deductible than what you can stomach as an owner. You are better off looking for another property to purchase or paying the higher insurance premium. Just a quick note about our program, we do not require any prior loss history to provide you with coverage. We obviously strongly urge you to gather this information, as it only benefits you, but we can offer coverage to you without it. More importantly, we will not come to you 30 to 60 days later and cancel or increase your premium. Our program was built by investors, for investors. We work a bit differently. We utilize a tool called Hazardhub, which provides us with a risk analysis for a specific location. It provides us with a score using a number of factors such as crime, education, vacancy, etc. Your location score determines what property coverages we can offer you. With more than 71,000 locations spread among all 50 states and priding ourselves on “Ease of Use” for investors, it did not make any sense for us to delay moving forward with coverage for up to a week while waiting on claims history. We have developed what we feel is a fair and stable rate to offset the risk we are taking on. It has worked very well for us as we have not had an “across the board” rate increase in over 10 years. Just something for you to consider when shopping for property insurance. Featured Reading What Every Real Estate Investor Should Know About Insurance Claims --- - Published: 2018-04-27 - Modified: 2023-05-01 - URL: https://nreig.com/risks-of-using-your-homeowners-liability-policy-on-your-investment-properties/ - Categories: Coverage Options, Insurance Education - Tags: homeowner's policy, liability, liability insurance, vacant land Insuring your investment properties for liability under your homeowner's policy is a common mistake for many new investors. Many will contact their local agent who insures their home and auto, and request to add the investment property coverage. The easiest thing for your agent to do is to add your investment property to your homeowner’s liability policy. This is a quick and inexpensive way to proceed, but it can be detrimental to you and your business. Here's why. Personal lines liability policies contain coverage “gaps” leaving you severely exposed. One major example is “Pollution” coverage. Personal lines liability policies, like on your homeowner's policy, contain a “Total Pollution Exclusion,” which is coverage for carbon monoxide. Let’s say you have a tenant living in your investment property who gets sick or even worse, passes away from what is determined to be carbon monoxide poisoning. Say this property is insured on your personal lines liability policy which contains the “Total Pollution Exclusion. ” You would be defending this claim on your own which, as you can imagine, will get quite expensive. Commercial liability policies are often more expensive than personal lines policies, but you shouldn't jeopardize your coverage and your business to save a few bucks. NREIG can provide you with $1,000,000 per occurrence of liability coverage for around $9 to $10 per month. Combining personal and commercial lines policies can jeopardize everything you own both personal and business. Treat your investment properties like the businesses they are. Assume you have your investment properties included on your personal lines liability policy, and your policy has a common $300,000 per occurrence limit. Using the example above, you have a tenant who passes away due to carbon monoxide poisoning at your investment property. The wrongful death lawsuit could easily exceed the single $300,000 limit of coverage. If it does, because your liability policy collectively insures everything you own both personal and business, the injured party could go after your personal and business assets. If your liability policies are structured the proper way and a large loss occurs, you are typically only exposed up to the amount of coverage your liability policy provides per occurrence. Let's look at it from the other side. Your teenage son gets into a car accident, killing another driver. The driver's family sues you for wrongful death, again exceeding your $300,000 limit. They can then come after your rental assets. Here's a real-life example. We had the opportunity to work with a newer investor who converted the home he had lived in for years into an investment property. He now had a tenant who had been living in the home for over a year. We first asked him: “Did you let your insurance agent know you were converting this location into an investment property? ” He quickly answered, “No. ” He didn’t feel the need to. After our conversation, he contacted his agent to ask if the policy in force extended coverage to a property occupied by a tenant. His agent eventually replied that they would need to cancel his existing policy and rewrite a new policy to insure this new exposure. What would happen if a loss occurs while he is renting out the home? Let’s say a fire occurs at the property. The assigned claims adjuster would visit the property to investigate the loss. During this visit, they uncover the home is not “owner-occupied. ” The policy purchased is for an “owner-occupied dwelling. ” Therefore, the insurance carrier would decline the claim due to Material Misrepresentation. The owner must rebuild their investment property on their own. Insurance carriers have a reason to deny a claim. If you are reviewing the declaration pages on your policy currently and are unsure if you have the correct type of policy to cover your non-owner-occupied dwelling, email your agent and ask them for clarification. We always recommend you use email so you have their response in writing. If something happens in the future, you will have leverage in the event of a declined claim, if needed. If you have any questions or would like to speak to one of our agents about your liability needs, please contact us at info@nreig. com to schedule a call or request a proposal. Note: This piece is not to be construed as contractual. Applicable language specific to your policy supersedes it. Information contained in this post is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations, and conditions. --- - Published: 2017-12-29 - Modified: 2022-12-22 - URL: https://nreig.com/insure-subject-to-investment-property/ - Categories: Insurance Education - Tags: homeowner's policy, subject to Insurance for "Subject To" properties is a commonly misunderstood challenge. A “Subject To” deal is when you agree to purchase a property subject to the existing mortgage along with all other liens attached. The existing homeowner deeds the property to you and you take over making the payments to the lending institution. You do not assume the loan through the bank. It's a popular creative investment strategy for real estate investors. The obvious dilemma is the “Due-on-Sale” (DOS) clause being invoked and the mortgage company calling the note. When it comes to insurance for "subject to" deals, some rules of thumb usually apply: If you (or your entity) own, or have a financial “stake” in the property, be the “first named insured”. The first named insured is the primary recipient of any potential claim benefit or liability protection only. A “loss payee” will have its interests protected in the event the property itself is damaged (a mortgagee is inherently BOTH). If you decide to keep the “homeowner’s” policy in place and be named as the additional insured, be advised. If it is discovered that the ex-owner, the first-named insured in this case, no longer owns the property, expect the insurer to deny based on the fact the policyholder no longer owns the property. Even if you manage the claim to be paid, you are not the entity to receive the proceeds, as you are not the first-named insured. If you did not attempt to be added as a loss payee as well, chances are the insurer will question the necessity for you being named as such. When the insurer discovers you now own the property, they will need to write a new policy. The Wrong Way to Insure Your "Subject To" Property When getting insurance for your "Subject To" property, know that being named as an "additional insured" on an existing homeowner's policy is not sufficient coverage. Here's why. In the event you do go through a claim at one of your locations, the claim’s settlement check(s) paid to repair the property are made out to the first “named insured” AND all “additional insured. ” Therefore if you are only listed as an “additional insured” on the homeowners’ policy, say a fire damages the property, the previous homeowner has the same rights to the claims check as you. We have witnessed instances with a previous company where the insurance carrier made a mistake and only listed the first “named insured” on the claim settlement check, failing to list the lender. In this instance, the owner of the property made $1. 2 million on the claim settlement, left the country, and the lender was left with a burned-out apartment building. The Correct Way to Insure Your "Subject To" Property The proper way to insure the property, once you (or your entity) own it, is to have a non-owner occupied “landlord” policy, with you as the new first-named insured. If you have ownership and financial interest in the property, you better be first “named insured” on the insurance policy. The lender is going to receive notice from the carrier when the homeowner’s policy is canceled. If they are doing their job, they are hounding the homeowner for proof of replacement coverage. This is where the policy you purchased will suffice. When reviewing the evidence of insurance you provide, the lender will make sure: The business entity is listed as first “named insured” Their mortgagee clause is listed correctly to protect their interest in the property The building value provided by your carrier meets or exceeds the amount of the loan to satisfy the lender’s interest in the location Most importantly, the homeowner must be listed somewhere on the certificates NREIG lists the owner on the documents, but on the liability certificate only. Owners are included on the liability only because on a liability loss the settlement check(s) are made out to the injured party, not the “named insured” or any “additional insured” parties. In the event of a liability loss occurring at the property with the homeowner named in the lawsuit, your liability policy coverage will extend to them. Why Not Keep the Ex-Owner's Policy in Place? One concern of carrying two insurance policies on the same property in a "Subject To" deal is that most policies have “excess” clauses. In other words, the policy will pay only excess amounts, if any other policy exists. If one of the two policies has such a clause it will create havoc in getting a loss paid. For example, the property has a “homeowner” and a “landlord” policy (both) on it. A Fire occurs and the owner files a claim under the landlord's policy. So far, so good. However, the tenant (prior owner, or new occupant), has personal property damage. He must also file a claim, but against his “homeowners” or tenant’s policy. The respective insurance company on each claim is bound to find out about the other policy’s existence and could (more than likely would) attempt to invoke the “excess” clause of its own contract, potentially leaving the owner waiting for courts/arbitration to settle. If an insurer has an opportunity to mitigate, or deny, a loss if there are contractual issues, be sure they’ll try! As an added note, if the prior owner moves out, the “homeowners” policy is no longer valid as the property is now “non-owner-occupied. ” Bottom line: if you own it, you insure it. --- - Published: 2017-12-12 - Modified: 2022-12-12 - URL: https://nreig.com/insurance-coverage-choices-available-turnkey-operators/ - Categories: Insurance Education - Tags: actual cash value, replacement cost Turnkey operators have unique needs when it comes to how they insure their property investment portfolio. Whether it’s deciding to carry property and liability insurance (or liability only) or determining what building value is sufficient, turnkey operators need an insurance program built to accommodate their specific needs. Considerations for Turnkey Operators For turnkey properties, we offer both package (property and liability) coverage options as well as stand-alone premises liability. Regardless of the amount of time you have invested in the property, it is important to minimize your exposure and protect your assets. Decide between Two Loss Settlement Methods When it comes to insurance, there are many coverage options available for real estate investors. One of the most common questions turnkey operators ask is whether Actual Cash Value or Replacement Cost coverage is appropriate for their business strategy. With Actual Cash Value, you can insure your property to a much lower valuation per square foot*, but depreciation** is figured into the one settlement to which you are entitled in the event of a loss. Replacement Cost gives you the ability to recover the depreciation that was deducted from your initial claim's settlement. In return, you are required to insure your property to a higher valuation per square foot. To be eligible to recover any depreciation, you must first do the following: Exhaust the initial settlement check you received from your carrier on the repairs. You pay out-of-pocket for the remaining repairs left. Once these repairs are complete, you submit the receipts for your expenses to your property carrier, and they will reimburse you up to the depreciated amount taken from you in the onset of the claims process. * Accepted values vary from carrier to carrier. **Depreciation is tricky and almost impossible to figure. Everything depreciates at a different level, with the average being roughly 1-2% per year since the latest updates. The exception to this is the roof – which depreciates at an accelerated rate (due to the constant exposure to weather). Determine What You Would do in Case of a Loss When deciding how to best protect your investment property, consider what you would do if you were to suffer a total loss. Would you rebuild the property? Or would you clean up the land, sell it, and move on to your next investment opportunity? If you would not rebuild, then carrying Replacement Cost is overpaying for property insurance. You essentially pay 25-30% more for coverage while still limited to one settlement check from your carrier. NREIG structures your coverage with a business model in mind. For locations that you stay on as the management company following the sale, we will allocate the appropriate ownership interest to these locations, while leveraging your portfolio performance to stabilize your property rates long-term. Regardless of your preference to self-insure your property coverage (and choose to only carry premises liability coverage) or preferring to cover both the property and liability coverage, our residential Insurance Program has the coverage options that are right for your business. --- - Published: 2017-07-01 - Modified: 2024-11-11 - URL: https://nreig.com/understanding-co-insurance/ - Categories: Coverage Options, Insurance Education - Tags: claim, coverage options Coinsurance is an industry-wide property provision that states the amount of coverage that must be maintained as a percentage of the total value of the property at the time of loss. The penalty is based on a percentage stated within the policy and the amount reported. Common coinsurance is 80%, 90%, or 100% of the value of the insured property. The higher the percentage is, the worse it is for you. It is important to note, as a way of preventing frustration and confusion at the time of loss, coverage through the NREIG program has no coinsurance. Let's discuss an example of how a coinsurance penalty could be assessed in the event a loss occurs and you are deemed to be underinsured. How Coinsurance Works Let's say a house insured for $100,000 sustains a loss of $40,000 and carries a $3,000 deductible. The claims adjuster determines how much the property would cost to rebuild if the location had been a total loss. In this example, let’s say they determine it would cost $250,000 to rebuild. Then they refer to the declarations pages of your policy and see you have an 80% coinsurance clause on your policy. Meaning you agreed, when entering into this agreement with your carrier, to be insured to 80% of the true replacement cost of the policy just determined to be $250,000. Provided you are carrying $200,000 or more of building coverage (80% of $250,000), you have met your coinsurance clause. However, if you are insured to $199,999 or less, you will be assessed a coinsurance penalty based on the percentage you are underinsured (50%). This is done prior to figuring in the depreciation and the deductible (so they can take the percentage off of the larger amount). This will reduce your claim amount to $20,000 (50% of $40,000), less your deductible, meaning the insurance company will pay no more than $17,000 on your $40,000 in damage. If you are looking at your declarations pages and scratching your head as to why you are insuring your 1,000-square-foot home for $150,000, look no further than your coinsurance clause. Many carriers (in an attempt to avoid a coinsurance penalty in the event of a loss), greatly inflate the ITV (Insurance to Value) of the property. The last thing your agent wants is you in their office upset after a loss occurs because, in addition to being hit with depreciation, you are also being hit with a coinsurance penalty. So the better alternative is to charge you a higher premium for more coverage than you will ever recover in the event of a loss. NREIG works with you to determine what valuation per square foot you want to be insured too. We provide you with Actual Cash Value coverage and no coinsurance beginning at $75 per square foot (the minimum ITV threshold to insure a property in our program). Replacement Cost with no coinsurance begins at $120 per square foot. Please keep in mind, NREIG is willing to provide you with a full policy/coverage comparison of what you currently carry and what NREIG can provide. --- - Published: 2017-06-20 - Modified: 2023-04-18 - URL: https://nreig.com/is-it-covered-series/ - Categories: Insurance Education, Is It Covered? - Tags: exclusions, insurance coverage, policy While insurance policies are probably not the most popular item on your reading list, it's critical to understand what is covered and what's not. Knowing what is not covered allows you to take proactive steps to prevent losses where you will bear the full weight of the expense. To have your property damaged by an event you could have prevented is frustrating but suffering a preventable loss and then finding out the loss is not covered is doubly painful, and, could potentially take you out of business. Industry-wide exclusions for property insurance aren’t the only areas of a policy that generate confusion. For example, there are instances where certain risks may be covered, but only under specific circumstances. These may feel like “gray” areas of your policy. Along with addressing standard coverage exclusions, we want to bring clarity to these “gray” areas too. Accordingly, we have named the series “Is It Covered? ”, a question we may answer with yes, no... or maybe. Our only caveat: keep in mind that policies may vary. Always check your own policy for language specific to your covered property. If you have questions, consult your agent, who should be eager to help you. Some of the topics are very basic and you may find yourself wondering, “Who doesn’t know this? ”, but if we are writing about a particular coverage or exclusion, it’s because someone has reported a loss of that nature and it wasn’t always easy to determine if it was covered. Our goal is to deliver easy-to-digest content to help you avoid such losses. Hopefully, you will find these quick reads to be educational, and maybe even entertaining. If you are reading our newsletter or articles on this site, you may have sidestepped a loss or two and we’re glad. If you have questions or solutions that you have used in your business, we’d love to hear from you! Drop us a line at info@nreig. com. We hope that you will find the “Is It Covered? ” series informative and valuable to your investing life. --- - Published: 2017-05-26 - Modified: 2022-10-17 - URL: https://nreig.com/debunking-the-personal-umbrella-policy-myth/ - Categories: Insurance Education - Tags: liability Myth: A personal umbrella policy is the best way to cover my investment properties. We hear this on daily basis. Insurance agents collectively do a poor job explaining to their clients what an umbrella policy is and isn’t. An umbrella policy is not a “magic bullet” that covers everything. In fact, it extends zero coverage to your structure - or any property coverage - at all! Umbrella policies are a way to garner additional liability coverage above and beyond what your underlying or primary liability policy provides to you. Meaning, if your underlying liability policy provides you with $1,000,000 per occurrence and you purchase a $5,000,000 umbrella, you have increased the per-occurrence limit of coverage to $6,000,000. Your Personal Umbrella Policy May Not Cover Your Business Personal lines umbrella policies are underwritten very differently than commercial lines umbrella policies. Many personal lines umbrella policies contain a “Total Business Venture Exclusion. ” Because of this exclusion, even if you pay to include your investment properties on your personal lines umbrella policy, it’s possible you have no additional coverage through your umbrella. This is because your investment property is or is intended to be a revenue-generating asset. Umbrella policies also do not provide you with first-dollar coverage. You must exhaust your underlying liability policy limits in order for your umbrella policy to provide coverage. In over nine years we have only seen one umbrella carrier willing to drop down and provide first-dollar coverage for a limited number of excluded coverages on the underlying liability policy. The kickers to this are: These options are much more expensive and you are better off just purchasing a more comprehensive underlying policy. These also come with a $10,000 - at a minimum - Self-Insured Retention for any loss excluded by the underlying liability policy that is picked up by the umbrella policy. Watch out for exclusions In addition, do not purchase an underlying liability policy that could have exclusions. Standard exclusions in a personal lines liability policy that can do more harm than good are Pollution and coverage for dog bites. The Pollution exclusion could harm you in the event of carbon monoxide poisoning on your property. Many personal lines policies list 12-15 of the most "vicious" breeds to exclude from coverage. If a dog bite occurs on a property you own, this is a liability exposure for you. Your umbrella will not save you if coverage is excluded from your underlying liability policy. Your umbrella policy almost always “follows” your underlying liability policy. If something is excluded on your underlying liability policy, your umbrella also excludes it. Last point on the umbrella policies. The underlying liability and umbrella policies you have should be the same type of policy for them to work together. A commercial umbrella policy will not go over a personal lines liability policy and vice versa. It's important to remember that commercial insurance policies are best utilized to cover all types of commercial real estate from single-family dwellings to large apartment complexes. --- - Published: 2017-05-10 - Modified: 2023-06-26 - URL: https://nreig.com/premises-liability-coverage-end-regards-workers-hire/ - Categories: Coverage Options, Insurance Education - Tags: liability insurance, New Construction Insurance, Renovation Property Insurance Premises liability insurance covers property owners in case the owner's negligence causes harm or injury. The most common use of premise liability is when renters trip and fall from something like an uneven sidewalk. When discussing this coverage, investors have a couple of common questions about potential injuries with hired workers: Does my Premises Liability policy extend coverage to workers that are hired to work at my property and get hurt? What if their negligence causes harm to others? The answer: No Premises Liability policy available for investment properties extends coverage to anyone paid to complete work at the property. Only Hire Licensed General Contractors Importantly, your liability coverage excludes injuries to your tenant if they happen while completing work at your property in exchange for a decreased or waived rent amount. You should only hire licensed general contractors to complete work at your property. Hiring unlicensed handypersons to complete any work on-site, is an exposure to both you and your business that you should avoid. Try and think about it from the perspective of the insurance company. Is a licensed professional or an unlicensed handyperson more likely to cause a loss or get injured on a job? The insurance industry often considers an unlicensed handyperson to be uninsurable, and many carriers even go as far as to say they would be “buying claims” if they extended their coverage form to include the exposure of unlicensed handyperson. Contractor's Liability Coverage Any reputable general contractor is going to carry a liability policy that covers their business operations, and you can make their liability policy extend coverage to you. When a general contractor visits your property to bid on a job, require them to provide two documents: Proof of Liability coverage that covers their business operations Proof of Workers' Compensation coverage if they have employees You'll also want to require they add your purchasing entity as Additional Insured on their liability policy for the time you employ them. Here's why: 1. Extends Their Coverage to You Carriers that specialize in Contractor’s Liability coverage understand the transactional nature of this line of business. They will add your entity for minimal cost (usually $50 or less), and some will do it free of charge. Being listed as Additional Insured on their liability policy will extend their coverage to you. This is critical if your general contractor's negligence at your property injures someone, and you are named in a lawsuit by the injured party. If utilized correctly in the above scenario, your Premises Liability coverage would extend defense duties to you. This is one of the benefits you pay for when you sign into your contract with your liability insurance carrier. But the negligent party’s liability policy would be the one ultimately responsible for settling the injury loss. 2. Get Notified if Policy is in Danger Another reason to be listed as Additional Insured on the Contractor’s Liability policy is you'll get notified if their policy is in danger of cancellation for non-payment of premium or another underwriting reason. Contractors can purchase a Liability policy by paying 1-3 months of premium at the inception of the policy. Yet, insurers issue proof of coverage for a full year. So, what happens at month four when your general contractor doesn’t pay his insurance premium and his policy cancels? Unless listed on their policy, you will invest significant time confirming their coverage is in good standing every month. A good piece of advice is, if you are unsure where your coverage ends, ask your agent before something happens. If your general contractor has been unable to obtain liability coverage for their business, we can help. NREIG has designed a specialized GC Liability policy that complements our Premises Liability coverage very well. We designed it with our clients in mind, to minimize their exposure during the renovation at one of their properties. --- - Published: 2017-05-03 - Modified: 2022-12-29 - URL: https://nreig.com/choosing-right-agent-coverage/ - Categories: Coverage Options, Insurance Education - Tags: insurance agent, insurance coverage, liability Property investment can be a lucrative business. In fact, its reputation as a great way to build wealth has given many people the impression that it’s an easy way "to get rich quick," with minimal risk or cost to the investor. This couldn’t be further from the truth, and many new investors have learned the hard way that there are plenty of expenses that chip away at their profit each month, insurance coverage being one of them. While it’s usually not difficult to secure coverage for your investment property, it often comes at a price – and one that can significantly impact your cash flow if you’re not careful. This is why it’s helpful for investors to arm themselves with a few tips that can help them save a little bit of cash on their insurance policy because let’s be honest here, every little bit counts! 1. Find a reputable, trustworthy agent Far too many investors make snap decisions and jump into an agreement with Joe Blow the Insurance Agent, who – shocker! – doesn’t have the investor’s best interests in mind. Just because they have the lowest premiums or what appears to be the best coverage, doesn’t mean it’s the best choice for you. Before settling with an agent, take the time to ensure that they have a solid reputation (i. e. , get some referrals from other investors) and are familiar with investment properties. Once you’ve decided on someone, plan to review your coverage every now and then and make sure no adjustments need to be made. This little bit of homework can wind up saving you significant time if the day ever comes when you need to actually use the policy. 2. High deductibles aren’t necessarily a bad thing Don’t let a high deductible scare you off from otherwise great coverage! This should not be a deal breaker. Higher deductibles usually mean lower premiums, which means more money in your pocket each month. 3. Add liability insurance to your coverage package You will also need to cover the exposure created by your tenants – which will, in effect, cover YOU. Surely you’ve heard stories about a clumsy tenant falling down the stairs and blaming it on the landlord somehow, and then that landlord having to shell out the cash for medical bills, missed work, undue stress/trauma, etc. Whatever the case, you do not want to be in this situation, which is why you need to protect yourself with liability insurance. In the event something does happen to one of your tenants, this type of insurance will be your saving grace. National Real Estate Insurance Group also offers a Tenant Protector Plan, which provides additional protection to landlords and can be combined with liability coverage. --- - Published: 2017-05-03 - Modified: 2022-12-29 - URL: https://nreig.com/insurance-issues-real-estate-investor/ - Categories: Coverage Options, Insurance Education - Tags: actual cash value, basic form, deductibles, replacement cost, special form, valuation methods If one of your single-family properties caught fire last night, are you certain it's insured properly? If a spring storm blew the roof off of your 12-unit apartment building, would you have coverage for your loss of rent? Is your subject-to exposure protected? When it comes to insuring your investment properties, it's best to know what protection you have, or don’t have, before you need to file a claim! As consumers, let alone real estate investors, we tend to flinch when the insurance bill arrives. Many times, for good reason, rates are higher, the coverage seems to diminish, and for what? We never even filed a claim! However, if we stop thinking of our insurance policies as just another drain on our cash-flow, and more as a legitimate part of our business plan, that premium notice may be a little easier to open. Most of us consider insurance as a "necessary evil. " The attitude that getting the lowest insurance rate makes the most sense has hurt more real estate investors than it has helped. That’s because the agenda for the agent may not fit the needs of the investor. Protecting our assets is more complex than simply finding the cheapest insurance rate. Inadequate coverage, whether relating to your property or liability, may be just as damaging to your business as no coverage at all. It is always nice to save a few dollars to add to your net income, but make sure you are aware and comfortable with your coverage levels and options. The following gives an overview of what you need to know when insuring your investment properties. Actual Cash Value vs. Replacement Cost Make sure you understand the difference between actual cash value and replacement cost. Also know what a coinsurance penalty is, and how it may apply to your units. Every property, and property owner, for that matter, is different. Your comfort with how these options affect your coverage is vital for you to make an educated decision on which option to carry per property. ACV may be cheaper but could cost you when depreciation is applied to a claim. Liability Limits Always carry as much liability protection as you can afford when insuring your investment properties. As a minimum, you should carry $1,000,000 per occurrence. The larger your portfolio, the more liability protection you should have. Surprisingly, there is a minimal premium charge in most cases to double your protection. An umbrella policy is a method to provide liability coverage beyond the standard $1,000,000 or $2,000,000 limits. An umbrella is usually more cost-effective when you have more than one type of liability exposure. Other Structures and Personal Property Coverages Don’t forget to protect against the loss of detached structures, such as garages, sheds, and outbuildings. Some policies automatically include limits for these. Also remember to protect items in the units such as refrigerators, stoves, and window air conditioning units. Again, some policies may automatically provide built-in protection for these items. Ordinance and Law Coverage This protects against additional costs you may occur to bring your damaged property back to code after a loss. As time passes and building code changes, most properties are grandfathered. However, the repairs that are inspected by the governing municipality are required to be to the current code. Hard-wired smoke detectors and handicapped accessibility are two such examples. Without the Ordinance and Law endorsement, such work is typically not covered under your policy. Older properties and multi-unit properties are more at risk for this situation. Loss-of-rents or Business Income Coverage This provides coverage for your lack of rental income if your tenants are forced out of your property due to a covered loss. Some policies have built-in coverage to a certain time limit, such as 12 months. Other policies may have an endorsement you must purchase at specific levels of coverage. Either way, this is protection all property owners should have. Deductibles Simply stated, the higher your deductible, the lower your premium. If you are a multi-property owner, and your units are insured under separate policies, your deductible will apply, per location, if you are on what is typically referred to as a “package” or “blanket” policy, your deductible usually applies per occurrence. This could be a big difference, out-of-pocket, in the event of a local catastrophe such as a tornado. Earthquake, Water Backup, and Flood Coverage Most policies have exclusions for losses such as earthquake, water and sewer backup, and flood coverage. You can buy these coverages back through endorsements. Make sure you understand how each coverage may apply, respective to your chosen insurance carrier. This will ensure you can make an educated decision when insuring your investment properties. Insuring the Proper Entity Make sure you protect your (or your entity’s) interests. It is not worth sacrificing the proper protection to avoid the dreaded due-on-sale clause. The entity that owns the property should be the first-named insured. The first-named insured is the primary recipient of policy benefits. Additional insured and loss-payee endorsements may suffice in certain situations. However, as a general rule always aim to be the first-named on the insurance contract. All-risk - Basic, Broad, or Special By definition, all-risk simply means that unless something is excluded, it is covered. Named peril, means just that, for a loss to be covered, its cause must be named in the policy. So, even though all-risk is a more comprehensive form, it does not mean that everything is covered. Take a look at your policy exclusions. Not that many of these exclusions can’t be purchased back, but they usually generate a pretty long list. Basic and Broad forms put the burden of proof on the policyholder regarding the cause of damage or loss. Special reverses this. Learn more about the differences between these and what to consider when selecting which level of coverage you need here. Using the “Best” Insurance Company The insurance company (or companies) you use should be one with the financial strength to deliver on their contractual obligation when... --- - Published: 2017-05-03 - Modified: 2023-01-03 - URL: https://nreig.com/nreig-reporting-form/ - Categories: Coverage Options, Insurance Education - Tags: renovation, vacant land liability insurance, Vacant Property Insurance Designed for real estate investors, our monthly reporting form is an insurance methodology that allows our clients to change occupancy status, and property values, as well as add and delete locations with no minimum earned premium. Meaning, you only pay for what you need on a month-to-month basis. Clients receive a monthly invoice that reflects the current month’s inventory of covered locations and related coverages via their Client Service Representative. As such, it is important to review your statement each month and report any changes to us, i. e. occupancy status, coverage amount, etc. Failure to do so may affect your coverage in the event of a loss. For ease of use, you can report changes online. Occupancy Status for Monthly Reporting Reporting occupancy status changes to us is very important in maintaining proper coverage at all times. Most importantly, occupancy status must be accurate at the time of loss. In our Program, there are three occupancy types: Occupied: Property currently occupied by a tenant or property that will be occupied by tenants within 60 days. If a property has been vacant for more than 60 days but has been reported as occupied, coverage may revert to Basic Form. Renovation: Currently undergoing renovation or within 60 days after completion. For properties under renovation, claims are settled based on invested capital at the time of loss. Vacant: Not undergoing renovation and not occupied. Frequently, such properties that are on the market for sale, 60 days after rehab is complete. Vacant properties must be boarded up and secured at all times. Failure to do so may affect your coverage in the event of a loss. Learn more about our monthly reporting and Residential Investment Property Program here. --- --- > © National Real Estate Insurance Group – For questions, contact: info@nreig.com ---