When was the last time you solicited an insurance quote for your properties?  Insurance is one of those necessities that goes along with investing that is sometimes placed to the back of the line as far as priorities go.  Property owners need to be proactive when it comes to insurance policies.  For many years I had the same insurance polices with the same agent and I thought as an insurance broker with access to almost any insurance company I would be getting the best rates available, that was not the case.   Networking with REIA members I was given several phone numbers of insurance agents/brokers.  After taking some time to forward information about the properties and my current policies I was amazed to find out that I was able to reduce my annual insurance premiums by almost half.  I currently solicit at least three insurance quotes every year on all my properties.  This will ensure that I am receiving the best possible rates available. 

You should also know what is in your insurance policy.  Have you ever tried to read all the details in a policy and actually understand what they are?  You may want to seek the advice from an attorney or an insurance expert.  Know what your deductible amounts are and look to raise them only if it makes good financial business sense to you.  

In these tough economic times property owners need to look at every aspect of their business and look at ways to maximize cash flow.  Making sure you are receiving the best possible insurance quote is a great place to start.

Chris Yatooma, President

Real Estate Investors Association of Oakland