How Insurance Agents Can Succeed in the Real Estate Insurance Niche

Insurance agents who serve the real estate sector have the chance to provide important protection while building a solid career. If you’re looking for a way to grow your book of business, focusing on the real estate insurance niche could be the right choice. Heffernan Network can provide you with the support you need to succeed.

The Value of Insurance Niches

Imagine you’re a business owner in an industry with unique risks and coverage needs. You’re looking for insurance to protect your livelihood. Are you more likely to choose an insurance agent who doesn’t know much about your industry or someone who specializes in your field?

The second option obviously sounds better. Although a jack-of-all trades insurance agent might be fine for basic coverage, policyholders often want the advice of an expert for more complicated coverage issues. This is why it makes sense to specialize.

Why Real Estate Is a Good Niche

When looking for niches, insurance agents have many options. However, real estate stands out for several reasons:

• It’s a stable industry. Although the real estate market has highs and lows, the need for property insurance is steady. Some industries may come and go as technology and society change, but you won’t have to worry about whether your specialty will still be a viable niche in 10, 20, or 30 years if you pick real estate.
• New projects create a constant stream of new opportunities. According to the U.S. Census Bureau, the U.S. issued more than 1.5 million residential construction permits in August 2023. That’s a lot of new projects in need of insurance – and those numbers don’t even include commercial development.
• The real estate sector has significant insurance needs. Construction projects need a variety of coverage, including general liability, builder’s risk, workers’ compensation, and environmental liability. Property management companies also need solid property and liability coverages. This is a great opportunity for agents who are willing to learn about the real estate sector’s insurance needs and put together solid insurance packages.
• Many agencies are struggling to provide property insurance now. As you know, the property insurance market is challenging. Many smaller agencies are having a hard time sourcing good solutions for their clients. As part of the Heffernan Network, you have access to a broader range of solutions, and that can make a big difference for your clients in this hard market.

There’s No Time Like the Present

According to GEP, the Infrastructure Investment and Jobs Act of 2021 is expected to contribute to a 5.5% increase in construction spending in 2023. However, rising prices could create an obstacle to development.

Construction Dive says 82.5% of construction materials have seen significant price increases since 2020. Plus, it looks like these higher prices are here to stay. Rising insurance costs have also been a problem. The Wall Street Journal says developers in Florida are even putting off big projects due to the surge in insurance costs. Meanwhile, property managers are struggling with rising property insurance costs and difficulties obtaining coverage.

The demand for real estate projects still exists, but property owners and real estate developers need to get their costs under control before they can meet that demand. Insurance agents can help by providing affordable insurance solutions and risk management support.   

A Network Partnership Is Invaluable in the Real Estate Niche

At this point, you might be thinking that a real estate niche sounds great, but you have no idea how to get started. Before you can even think about trying to market to real estate professionals, you need to able to provide insurance and risk management programs that will meet their needs.

Heffernan Network can help. We offer:

• Expertise in multiple types of real estate, including offices, industrial buildings, warehouses, and retail centers.
• Insurance products designed for real estate, including package or monoline property and liability, property management liability, tenant liability, and builder’s risk.
• A broad range of creative solutions like E&S, parametric, captive, and self-insured options if traditional insurance doesn’t meet a client’s needs.
• Access to risk management services to help real estate clients control their losses and make their coverage more affordable. Our value-added risk management services include virtual medical triage, loss control services, and 24-hour claims services.
• Guidance so you can confidently navigate, knowing you have an experienced partner by your side whenever questions arise.

If you’re ready to get started in the real estate insurance niche, we can help. If you haven’t yet joined Heffernan Network, now is the time to do so. Niche market support is just one of the many ways we can help your agency reach the next level. Contact us to learn more.