When getting insurance for your entity, make sure to pay the least amount for the most amount of coverage. Today, Clint Coons of Anderson Business Advisors talks to Drew Maconachy of Maconachy Stradley Insurance about insurance inspections.
- Appearance is Everything: Do you look like a mom-and-pop or professional real estate investor to your insurance carrier?
- Fake it, til You Make It: You’re smart, knowledgeable, and know what you’re doing - even if you don’t - when carriers inspect your properties
- Matrix of coverage and cost determines which carrier is picked to insure your property
- Inspection Required: Insurance carrier may require an inspection within 60 days and has the right to cancel coverage due to the results
- Failed Inspection means: This isn’t a great operator, this isn’t a great building, or both
- Failing an inspection is worse than losing your policy; finding coverage won’t be easy
- Certificate of Insurance to Lender: If insurance company changes within annual term, notifying the lender is required
- 3 ways to prepare for inspection:
- Professional housekeeping and maintenance: Clean, clear, and repair general areas
- Management Summary Report: Aggregate maintenance and housekeeping records to show people are being held accountable for specific tasks
- Know your building/property: All the nuts and bolts from foundation to roof; be able to answer questions before being asked
- Cost-benefit Analysis/ROI: Spend a little money now, to save a ton later
Drew Maconachy’s Phone Number: 330-966-5170