http://virtualrealestateteam.com. This year I have been dealing with a lot of first time real estate investors who have chosen Oklahoma City as a low risk positive cash flow city. There is much education to do with them on that first property and the questions about a home insurance plan is almost always upfront in the conversations. Crossing effective coverage but not hurting cash flow can be a delicate line but if you are a first time investor i would like to tell you what I tell them.
Oklahoma City has very reasonable rates due to a lack of constant large claims. I know we are known for tornados but there has been only three in the last 18 years in the area. However our insurance covers tornado lost just like fire without extra cost. We also recommend loss of income for investors of six months in cash you do need to rebuild. The other main issue is what should you do for a deductible? The number one large claim I see in Oklahoma City real estate is for roof damage caused by hail storms. My home has had two new roofs in the last 8 years due to hail. For this reason we normally recommend a $1500 or $2500 deductible. If you make too many claims you get put into a high risk pool and lower deductibles are not cost effective also.
The last bit of information is to get replacement value insurance versus actual value. Like most cities, Oklahoma City homes are going up in value so if you get actual value then that is the max you can get. If you for replacement value and the insurance company insures it for $150,000 but it cost $160,000 then replacement is for $160,000 not the lesser amount that comes out of your pocket.
Whatever you decide to do both the insurance agent and I will make sure that what you have is what is best for you as well as your piece of mind. Most of my investors live outside the state of Oklahoma so being transparent and upfront about what we think is best is our duty to make sure that your first experience will be so good that you will want to repeat it. That is what a real estate investment specialist is all about.
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