ACQUIRE: 8 Steps for Gathering Insurance Quotes for a New Acquisition

Gathering Insurance Quotes for a new acquisition is a step that you take as you are looking to put an offer on a potential property. Only do this step is your are sending a letter of intent or offer.

Step 1: Look online for an independent insurance agent near you. These are brokers who request multiple insurance companies and they can shop for the best price from among the companies they have an agreement with to represent.

Step 2: Consider called a national exclusive agent, such as Allstate, State Farm, or Nationwide. Typically, big name national insurance companies don’t like landlord policies and will only do one or two properties if you have your home/auto with them but if you are just starting out and already have existing policies with them, they may give you significant multi-policy discounts.

Step 3: Have vital info ready when you call. This includes all your data about the property and potential updates to the roof, electrical, plumbing, and HVAC.

Step 4: When you call, you’ll talk to a admin or secretary for the agent. Know that they are often NOT licensed and not able to answer any questions for you. Let them take your information and ask for a time when they can email the quote. Then, make an appointment for a phone call with the agent. SCHEDULE officially so it’s set in stone on the calendar. Insurance agents are often over worked and you’ll want them to carve out about 15-30 mins so be respectful and make an appointment NOW for a time after you’ve received the quote.

Step 5: Receive the quote and repeat for 2-3 other insurance companies and agent/brokers.

Step 6: Compare the quotes. This is the most VITAL step here. You’ll want to read through and look for parts that mention EXCLUSIONS. Also, look for your deductible. Note whether it is Replacement Cost or Actual Cash Value coverage. You’ll want Replacement Cost whenever possible - note any exclusions on this coverage. Look for the words “co-insurance” or “ACV” for Actual Cash Value. These indicate that the insurance company wants you to take more responsibility for the property in the event of a loss. It’s fine, as long as you know ahead of time.

Step 7: Follow up with each agent at your set phone appointment and ask about any EXCLUSIONS. I know I keep emphasizing that, but each company excludes different items. Take notes on each quote form so that you can remember exactly who said what about which policy.

Step 8: Choose the policy AND the agent that best fits your property’s needs and your business goals.