We currently have 9 properties. Since we started with just 1, that means we have been adding insurance by the way of individual policies. Currently we have 3 different carriers. Now that we have 9 properties we've been looking for a single insurance carrier for our current and future properties. Our goals started out like this:
-- A single carrier
-- A single monthly payment
-- The ability to add/remove properties easily (Phone Call or E-mail). Online portal is even better but not required.
-- The same coverage even when a property goes vacant between tenants.
-- Pay less or the same as we do now for similar coverage.
With our target for 2015 still being SFR's, we're looking at adding between 5-10 properties this year. Once you reach the 10 property threshold, one starts to think about the complexities of your setup. While there are many areas that we wish we more streamlined, we are tackling one at a time. The thought process is, "How can we make managing 100 properties/units not much more difficult or time consuming than 10 properties/units?" 100 properties will of course require more time than 10 but how much more is magic number. We don't want it to be 10x more, we want it to only be 2x-3x more. This is how you scale and this is how you grow.
We feel the first place we did this well was with our bank. We have a single bank that is loaning us money and a single online portal for managing it all. Our next step is insurance. We recently signed up to be insured through NREIG (http://www.nreinsurance.com/). It actually met all of our required an optional items. We had been looking for a while and when we stumbled across them we finally found our solution. We're in the processing of switching over now but the process has been extremely easy. So far we're satisified. We can now easily add/remove properties, get proof of insurance, and insure our entire portfolio (whether 10 or 10,000 properties) in one single place.
So I wonder what we'll move on to streamline next? Any thoughts are greatly appreciated :)
Any cost savings by going with NREIG? Are these replacement policies at market construction costs?
ReplyDeleteThanks for sharing the insurance info. They presented at our REIG a few months ago and I've been wondering how good they really are.
ReplyDeleteThere were some cost savings yes, but not a ton, maybe 5-10%. My big thing was 1 insurance carrier (instead of the 3 we had) and easy add/subtract without any hassle. They can tailor the policies a lot of different ways. I'm able to choose the coverage amount I want which is nice. There are minimum's of course or you run into co-insurance, but they fit what we're trying to do very nicely.
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