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What essential steps should real estate investors make to navigate hurricanes and major storms?
Hurricane Harvey and the several following major storms have been a big wake up call to real estate
investors to have a plan for weather and natural disasters like these. Here are some of the most important
moves you can make to minimize risk and maintain great performance from your property portfolio.
Diversify Finances Insurances
Diversification is critical. It is far Having financial reserves is Insurance is critical in these
better to have more units, and vital for surviving and thriving in moments. Make sure you have
have them in diversified the wake of major storms. You all the appropriate coverages.
geographic locations. This way may need cash for repairs, for Note that only around fifteen
if you take substantial damage insurance deductibles, for percent of Houston homes in
to an asset or performance in covering income gaps, and the Harvey hit area had flood
Houston, you may have others additional expenses. One way insurance. So, just because it
in, say New Jersey, which will to achieve this is with using isn’t mandatory does not mean
offset the loss. financing on your properties, or that it isn’t wise to have. Basic
at least having a line of credit homeowners’ insurance won’t
available. This is also a great cover flood or storm damage.
way to have a partner to share See our recent blog on the key
in your risk. Just make sure you types of insurance you need to
secure and close on this make sure you are covered.
financing before a storm gets in Also take a minute to check
‘the box’.
your level of coverage, the
Real Estate Investors:
Essential Tips For
Navigating Hurricanes
amount of your deductible, and
that you have a solid insurer
with a good track record of
paying out.