How can I reduce my insurance expenses in real estate investing?

Good question.Show more

Without wasting a lot of time talking about why you might not want to do this and the risks that come along with it, I will simply answer the question.

The first thing you can do is switch from a replacement policy to an actual cash value policy. You also can change the amount of coverage. Say the property was originally insured for 500,000. You could instead insure it for only 250,000.

Most mortgage clauses have requirements regarding insurance so you will need to read those requirements. But if you are intent on reducing the cost of your insurance this would be a way where you could pay less per month or year in insurance. However, if something goes wrong, you might not have enough insurance to cover the loss.

One other thing you can do is get a license as an insurance agent. This is a great way to reduce insurance costs if you like to take tests and read books. The commission on insurance policies can be as much as 50% so if you can get rid of the commission by working as an independent insurance agent you can write all of your own policies.

If you have millions of dollars in assets by getting licensed as an insurance agent you can over many years save thousands in insurance costs. The downside is that you have to study for the test and pass it.

If you or anyone watching this video would like to learn more about investing and making money with investing, you should start coming to my Sunday weekly meetings where I educate investors. They are completely free and held each Sunday on Zoom.

Just go to www.benjaminzmiller.com and fill out the contact form.

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
ben@benjaminzmiller.com

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