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Reducing Risk for Investors

While BBVA Insurance is known in the industry for our lender-placed insurance program and tracking services, we also provide insurance for renters: a property & liability insurance program for residential rental properties. This investor rental program provides property and liability coverage for portfolios of residential rental properties held by financial institutions, property investors, REITs, and real estate management companies responsible for insuring owner’s properties.

Our investor rental program bundles property and liability coverages into a reporting from program to reduce risk exposure, streamline administration, and eliminate individual property underwriting.

Our Senior Vice President of Business Development, Damon Laprade, sat down with HousingWire’s CEO, Clayton Collings to discuss our investor rental program and how it can reduce risk for investors.

Watch this video interview or continue to read on for a summary of the video to learn more.

What are some of the key challenges facing rental property investors in today’s market?

There is a lot of uncertainty in the real estate market, which causes more challenges for investors.  The real estate market is inevitably impacted by major swings of the economy and interest rates. Specific to our industry, BBVA Insurance is seeing a lot of weather-related events such as flood, hail, and tornados. In addition, our team is gearing up for another highly active hurricane season.

As an insurance organization, BBVA Insurance has products that allow our clients to transfer physical damage risk resulting from these events, as well as cover their liability associated with renting properties.

What about BBVA Insurances investor rental program sets it apart from other programs within the space?

What sets BBVA Insurance apart from other organizations in the servicing space is our access to multiple insurance markets. Prior to the acquisition of Loan Protector, our company had 2-3 markets that we placed business with. Today we have doubled that amount.

Our clients have competitive terms, but this also provides stability to the insurance program that we offer. If a market loses appetite for the business, that program can be moved to another insurance carrier with little to no impact to the client.

BBVA Insurance has an in-house team of developers and technology professionals that build, maintain, and enhance the technology solutions used by our clients. Developing our own proprietary tools creates efficiencies for our clients and improves how investors manage property, liability, and flood insurance on their portfolio. The technology provides the ability to add and remove coverage instantaneously without going through a long underwriting or approval process.

Billing is also streamlined so that clients only pay for coverage as needed. This allows an investor to forecast the insurance expense without a large outlay of capital up front.

How does the investor rental program help reduce risk for investors?

Recently, there have been a lot of major catastrophic events occurring across the U.S. from multiple major hurricanes, floods, and fires. With that, there are always an increase in claims from damage.

Insuring the portfolio from these events is a necessity for investors to avoid major financial losses all at once. The program that BBVA Insurance offers allows the investor to transfer all or a portion of the risk in a way that’s streamlined and easy to manage with our reporting technology.

 

If you are an investor or need to secure coverage for a portfolio of residential rental properties, please contact us to get you in touch with one of our insurance experts.

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