In the world of real estate, insurance used to be viewed as a "last-minute closing item"—a box to check right before you get the keys. But in today’s landscape, that approach is not just outdated; it’s dangerous.
Following recent natural disasters that caused an estimated $78.8 billion in losses across Western North Carolina, the insurance market is shifting beneath our feet. At Yonder Real Estate, we believe in empowering our clients with more than just property listings; we want you to have the knowledge to protect your investments.
In our latest podcast episode, we sat down with Christy Shrum of ISA (Insurance Service Associates) to break down the "math of risk" and how property owners can navigate this "New Normal."
One of the most immediate shifts Christy highlighted involves carrier restrictions. In the past, a roof in decent shape was enough to secure a policy. Today, many carriers are flagging roofs older than 15 years as major hurdles. If your investment property or home has an aging roof, you may find your options for coverage shrinking—or your premiums skyrocketing. Knowing this before you buy or list is essential for a smooth transaction.
Many entrepreneurs and short-term rental owners assume that a standard General Liability policy is a "catch-all." Christy warns that this is a risky assumption. There is often a significant gap between basic liability and the specific endorsements you actually need to stay solvent after a disaster.
Utility Services Coverage: What happens if a downed line miles away shuts your property down?
Business Income Coverage: If your rental is uninhabitable for six months, how will you cover the mortgage? Without these specific endorsements, you aren’t just under-insured—you’re exposed.
How do you get the best of both worlds? Christy explained how ISA utilizes the scale of Legacy Risk Solutions. This partnership allows them to go toe-to-toe with "Big Box" national brokers to find competitive rates, while maintaining the boots-on-the-ground local expertise that WNC property owners deserve. In a volatile market, having a broker who knows the specific terrain of the Blue Ridge Mountains is invaluable.
It’s tempting to ask for the cheapest policy available, but Christy’s advice is clear: Don’t ignore your annual review. "If you’re asking for the lowest premium possible, you’re likely missing 80% of what you actually need," says Shrum. In the "New Normal," insurance should be viewed as a strategic hedge, not a monthly nuisance. A cheap policy is the most expensive thing you’ll ever buy if it doesn't pay out when you need it most.
Whether you are a seasoned investor or a first-time homebuyer in WNC, understanding the math of risk is vital for your financial literacy.
Looking to buy, sell, or manage property in Western North Carolina? Reach out to the team at Yonder Real Estate today. We’re here to help you navigate every step of the journey—from the first showing to the final insurance policy.
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