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Lane interviews insurance broker Ed Baki (Ross Diversified) about insurance for rental property investors, especially those building portfolios. They explain what drives premiums (coverage limits, deductibles, and location, with Gulf/hurricane areas costing far more), why higher deductibles can prevent costly small claims, and how lender requirements affect deductible choices. Ed contrasts replacement cost vs actual cash value policies, warning that depreciation can severely reduce claim payouts and that lenders typically require replacement cost. They discuss the importance and low cost of liability coverage, challenges with umbrella policies across multiple carriers and states, and loss-of-rents coverage for tenant displacement after a covered claim. Ed cautions against shared blanket programs where buyers are only “additional insured,” potentially losing claim control and facing exclusions, and urges investors to check flood zones; they also touch on wind/hurricane risk, earthquake deductibles, and home warranties.

00:00 Meet Ed the Insurance Guy

01:02 Why Investors Need Specialty Coverage

01:34 Premium Drivers Location Deductible

02:48 Choosing the Right Deductible

04:25 Actual Cash Value vs Replacement

07:40 Liability Coverage and Limits

10:01 Umbrella Policies for Rentals

11:16 Loss of Rents Explained

12:18 Rental Valuation per Square Foot

13:36 Shared Blanket Policy Pitfalls

17:31 How Turnkey Blanket Schemes Work

19:12 Questions to Ask Before Buying

21:36 Flood Zones and Flood Insurance

23:56 Earthquake and Wind Risk

25:38 Insurance Hotspots by State

26:58 Home Warranties Worth It

28:08 Wrap Up and Contact Info

Connect with me:

LinkedIn: https://www.linkedin.com/in/lanekawaoka/

Facebook: https://www.facebook.com/TheWealthElevator

Instagram: https://www.instagram.com/TheWealthElevator

Lane Kawaoka is a developer and multi-family syndicator who owns 10,000+ rental units and is the leader of “Hui Deal Pipeline Club” which has acquired over $2.1 Billion AUM of real estate by syndicating over $200 Million Dollars of private equity and most importantly distributed more than $45M back to our investors since 2016.

Check out our Top-50 Investing Podcast, The Wealth Elevator.

To help you get started grab our remote rental ecourse at theWealthElevator.com/firstdeal. The preceding is not tax, legal, or investment advice, nor an offer to sell securities or investment products. Always make informed decisions with professional guidance.

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