Real Estate Entrepreneurs, Do You Have the Right Insurance?

Proper insurance coverage for your real estate investment is a vital piece of the package that can sometimes get overlooked, whether you have just begun your property investing career or you are a seasoned professional. You have so much tied up that, in the event of total property loss (or even a liability or injury lawsuit), you run the risk of total financial ruin and/or your entire life savings wiped out—unless you’re protected with the proper insurance coverage.

As a savvy real estate entrepreneur, you want to make sure to ‘hedge your bets’ by making sure you have the proper insurance firmly in place. It’s this smart move that places you on the right side against a loss large enough to wreak financial havoc.

We’re sure you’ve heard of the phrase “insurance rich, cash poor.” Protection is one thing; a business financial burden is another. It’s important to make sure you’re discussing your needs with knowledgeable and experienced insurance professionals to determine your unique needs and ensure proper coverage.

Here at Hogue Insurance Agency, we have what you need to place yourself in that ‘sweet spot’ of balance between proper insurance coverage and financial burden. We live and work in this community in Dallas, and know the area, allowing us to match among various coverages exactly what you need to avoid disastrous results.

Types of Business Insurance Coverage

This is not an all-inclusive list, nor does this mean you will need every one of these. After discussing your investment or portfolio in-depth with you, we’ll be able to help you determine exactly which insurance coverages you need.

  • Business: Successful entrepreneurs know that business is basically all about buying and selling, and protection of the commodity. Just like any other commodity, real estate is the focus here. So much could happen, from property damage to personal liability. This package many times might also include separate or add-on policies for loss of income, builder’s risk, or general contractor protection.
  • Property Loss: This is a must-have. It covers you for physical property damage due to a variety of causes. We’ll make sure your policy covers everything you need—reconstruction, both total market and cash value—and we will discuss the addition of sewer, flood, equipment breakdowns, and other possibilities.
  • Liability: We’re sure this doesn’t even need an explanation nor us telling you that you need. The policy is best if it covers not only any property of yours individually but also your business itself. The possibilities are just too great that something could happen with/to a tenant or visitor. The financial damage can be too high for even a simple slip-and-fall accident during rain, snow, ice, etc.
  • Worker’s Compensation: Texas is unique in that it is the only state that does not require every business (with the exception of public employers) to carry workers compensation insurance. There are requirements if you choose not to cover your employees. You must (1) notify the Division of Workers’ Compensation in writing of this, and (2) notify any and all employees at the time of hire whether you do or do not carry it, along with posting notices in multiple places at your business of this.
  • Commercial: This is something you’ll need to think about obviously only if your investments are commercial. There’s much more risk involved in commercial properties for personal injury and/or liability, and any coverage you choose will need to protect you appropriately. We’ll help you determine this.

Other insurance to consider would be in the case of an apartment building, or various aspects such as terrorism insurance, cybercrime insurance, builder’s risk insurance, loss of income, and others. Everything, of course, depends on your own unique situation and concerns.


Closing Tips

As a real estate entrepreneur, you must have proper levels of insurance coverage that will provide adequate and comprehensive protection. That’s why we at Hogue Insurance Agency are here for you—we are reputable and experienced, with access to a wide range of insurance markets that will make all the difference.

This leaves you free to focus on your business, your investment, and build on your entrepreneurial ventures. The risks are there, but we’re here to protect you from them and arm you with all the knowledge and coverage you need. There are many ways to get in touch with us. Stop by our agency at 5757 W. Lovers Lane, Suite 221, Dallas or call us at (972) 404-0303.

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