Master Policy insurance VS individual property insurance

[James Jenkins]

Hey, folks! I wanted to touch on an important topic that I've run into quite a few times with recent new clients I've brought on. I'm surprised how many people don't even know what's possible when it comes to protecting their properties in the most efficient way possible.

I'm specifically talking about tenant occupied properties here. There's a different solution for flip properties, and that's a topic for another post. Virtually all of the investors I talk to have their portfolio insured where each property has its own policy, its own coverage, its own fees, etc. While this is the fastest and easiest way to get a property insured (if you're only considering the short term), there is another option that may be exactly what you need, especially if your portfolio is larger than 5 properties.

There's a concept called a Master Policy in real estate insurance, where all of your properties can be scheduled on a single policy. With this method, coverage like liability can be shared among all of the properties, and each individual property still gets to select its own deductible, lost rents limit as well as the specific value of the property coverage itself.

One of the biggest benefits compared to traditional insurance strategies is that you completely eliminate many of the fees you normally pay with individual policies. This alone is guaranteed to save you (potentially) thousands of dollars, depending on the size of your portfolio, without sacrificing any coverage or raising any deductibles.

Secondly, and something almost every investor I talk to appreciates, is the cost efficiency of the master policy approach. You get to take advantage of economies of scale. This can be a total game changer in how you approach the insurance and risk management part of your operation as an investor.

If you're wondering why your current insurance person hasn't mentioned this approach, it's entirely possible that they don't have access to a Master Policy program. This strategy is considered "commercial insurance" and so most agents and brokers don't write any of it. You have to get a consultation with a fully equipped broker to gain access to it for your portfolio.

---

So, I'd love to hear from you all on this. How are your properties protected? Do you have a Master Policy? Have you heard of this strategy?

Obviously, I'm available to talk with you personally or just reply here and we can talk more.

Cheers!

--

James