Shawn Woedl is the Vice President of the National Real Estate Insurance Group (NREIG), industry-recognized speaker and educator, and an expert on all lines of commercial property insurance. He will be presenting a study on “The 13 Insurance Myths for Real Estate Investors” at Think Realty’s San Diego Group Event in San Diego, California, on Feb. 18, 2017. We sat down with Woedl to learn a little more about his industry and where he gets his hard-hitting insights on real estate insurance.
TR: Let’s get right down to it! What is the most important lesson a real estate investor must learn from you at the San Diego event?
We touch on multiple key factors in obtaining the appropriate coverage. For the sake of keeping it simple, I’ll say this:
The most important thing you’ll learn from me is how to correctly insure your investment property to minimize risk without overpaying for unnecessary coverage.
TR: That’s a pretty big lesson in a pretty short sentence. Can you give us a few examples of mistakes you’ll help real estate investors avoid?
The biggest mistake I see time and time again is real estate investors are tempted to believe the cheapest option is always the best option – when it comes to insurance. Here’s the thing, though, an insurance mistake is actually just about the most expensive kind of mistake you can make! While it’s fine to want to save money on your insurance, it’s really important to make sure you have the right coverage for your property. Don’t default to the cheapest option before making sure it’s the right option. Make sure you have a clear understanding of both included coverages and exclusions on your insurance policy.
Also, make sure you work with an independent agent who has access to multiple markets. There’s no reason to tie yourself down to someone who doesn’t actually have the ability to get you the right coverage for your specific needs. Many investors stick with one agent just because they are familiar – even if they don’t do that great of a job, or have access to the policies and information a real estate investor really needs. It’s really frustrating to see, actually.
And the last mistake? I have seen multiple investors who do not keep their team of professional advisers informed and working toward the same goals for their business. For example, your needs as an investor purchasing your first location, are vastly different than what your needs will be two years from now after acquiring multiple properties. I’ll go into more detail in San Diego about those intricacies since a lot of investors don’t realize how important it is their professional team is constantly working toward the same goals. Something as simple as transferring your properties from your personal name into an LLC, if not done correctly, can cost you thousands of dollars following a loss, or you may find how coverage can be voided by your carrier altogether.
TR: So let’s get a little personal, now. What’s your “type” when it comes to real estate investing? Do you have a favorite person you like to work with?
NREIG/REIGuard is well-equipped to work with just about any real estate investor out there in any sector and scope because our specialty is building custom coverage options for real estate investors whether you own one property or hundreds! That being said, one of my personal favorites to work with is the local landlord or investor who invests in his or her own backyard. These folks have a very good understanding of their local markets – and even more importantly – play a vital role in their communities because they have a vested interest in those communities. It’s a real pleasure to figure out exactly what each one of these investors needs in order to protect their business model.
REIGuard provides simplified insurance for all types of investors to obtain the right coverage at the right time, and our clients all enjoy monthly billing and the ability to seamlessly insure their investments as they “float” through various stages of occupancy (occupied, vacant and renovation). And best of all, we write coverage in all 50 states, so you’re not going to have to find another provider when your business and your portfolio starts to grow.
Shawn Woedl, Senior Vice President of National Real Estate Insurance Group and REIGuard, is an industry-recognized speaker and educator with an emphasis in commercial property insurance. Come hear his presentation on the 13 Insurance Myths for Real Estate Investors and learn how to correctly insure your investment properties. Register for his presentation HERE and use the code REIGUARD for a 10% discount on your registration.