By Sven Ohlund
Senior Insurance Broker, Brush Creek Select
Insurance sucks, and everybody hates it. I get it. However, insurance is something that everybody must have, and it’s only when people really need it (which is hopefully never), that they truly appreciate it.
In today’s competitive housing market, more people are beginning to tap into the power of an insurance broker relationship to help them avoid risk, save money, and win deals.
Here are three ways you can do it, too:
1. Choose an independent insurance broker instead of an insurance agent
Insurance brokers are independent entities that work for you, not for any specific insurance company. This independence allows them to offer unbiased advice and tailor their services to your unique needs. They aren’t pushing specific products from one company, and they continuously monitor the best options for you at the best price.
Most disturbingly, single-carrier agents are demotivated to properly insure their clients. I’ve seen too many families trust the big names and big advertising campaigns, only to be left in dire straits with high deductibles and too little coverage when it matters most.
2. Leverage insurance intel when shopping for a home
Insurance brokers have access to a database that provides us with valuable information about a property’s insurance history. These reports contain details of previous claims made on the property, including the type of claim, date of the claim, and the amount paid out.
This information is gold when it comes to uncovering any secrets a property may be hiding or information that isn’t included on the seller’s disclosure. For example, we may find repeated sewer line backup claims or a “small leak” that was actually a $100k water damage claim.
This intel is especially important when buying renovated properties. Investors may not include a kitchen fire, for example, in the seller’s disclosure because they only hold the property for a short time and are unaware of previous claims.
3. Negotiate repairs prior to closing
In today’s market, sellers are often unmotivated to repair items that may be discovered during the home inspection. This is where your insurance broker becomes invaluable.
Let’s say you make an offer on a home but find out during inspections it has a damaged roof. You ask the seller to repair it or replace it prior to closing, but with strong buyer demand, the seller threatens to cancel your contract and move on to the next buyer.
Your insurance broker can help avoid a cancellation by informing the seller that the home is uninsurable in the current condition and repairs would be needed prior to ownership transition – regardless of the buyer or the insurer.
Insurance tends to get a bum rap. It’s boring, mandatory, and nobody likes an obligation, but working with a trusted insurance advisor and broker will ensure you have the best coverage for the lowest premium and will give you a competitive advantage during your home search.
If you’d like a free audit of your current coverage and premiums, reach out to me at 816-768-8239 or sven@brushcreekselect.com.
This weekly Sponsored Column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation.
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