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Common Insurance Pitfalls for Real Estate Investors

13 minPRO
1/6

Key Takeaways

  • Underinsurance triggers coinsurance penalties that reduce claim payments by 20-40%.
  • Coverage gaps during acquisition, renovation, disposition, and vacancy transitions create uninsured exposure.
  • Liability claims can exceed $1M—carry adequate CGL and umbrella coverage and use LLC compartmentalization.
  • Monthly insurance tracker reviews prevent coverage gaps and ensure lifecycle transitions are managed.
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Test Your Knowledge

1.What is operational risk?

2.What is a risk register?

3.What is the Recovery Time Objective (RTO)?