CREPN #78 - How to Save on Insurance When Investing in B, C, D Properties

Real Estate Investors who chose B, C & D properties must know four things to save on insurance.   Systems that are not replaced present a higher probability of failure or breakage resulting in damage to the property.  This increased likelihood of damage reduces the number of willing insurance companies to cover the property and in turn reduces the competition for your business which ultimately leads to higher cost of insurance. How to Save on Insurance When Investing in B, C, D Properties There are four systems that insurance carriers care most about and investors need to pay particular attention to: Roof - The roof is the first line of defense against rain and keeping water out of the structure.   A roof in poor condition can leak and cause a host of problems like: stained drywall, paint, and the big bad mold, which is a health hazard. Electrical - The older the property, the more concerned you should be.   Plumbing - Aging supply lines can be prone to leaks.  Supply lines made of galvanized pipe or polybutylene are known to fail.  When supply lines fail, the damage can be significant if not recognized immediately.   Heating & Air Conditioning - Properties with older, higher quality heating systems powered by a boiler or forced air natural gas, oil or electric furnaces have an average life expectancy of 18 - 20 years. The life can be extended with regular maintenance.   For your 10 things to know about insurance before you buy a property click here.