Insurance
5 min read
Author: Bill McGavock
Insurance adviser with over 25 years of experience
Reviewed by: Darryl Scott
Darryl Scott, Insurance Adviser
Buying an investment property is a big financial decision. It comes with risks.
And the biggest risk is you. Specifically, you losing your income.
After all, if you can’t earn money, you may not be able to afford an investment property.
For example, what happens if you lose your job and can’t afford the property? Maybe you get sick and can’t earn an income.
In that case you might have to sell your investment property early. You will miss out on future gains from that property and you don’t have that asset to help pay for your retirement.
That’s why many property investors decide to get personal risk insurance.
This type of insurance pays you money if you get sick (and in many other cases too).
So, if you’re using Opes to find an investment property, you might consider using Opes Insurance. We can help get your personal risk insurance in place.
But then you might also be thinking, “Should I use Opes Insurance, or use a different insurance company?”
And if that’s you, you might also think:
These are great questions and important ones, too.
Here at Opes, we believe in being as honest and transparent as possible. That’s why in this article you’ll learn the 3 differences between Opes Insurance and other insurance advisers.
That way, you can decide if we are a good fit for you (or not).
There are specific risks that you’ll take on as a property investor. These risks are different from the ones most other people face.
As mentioned, your biggest risk is losing your income. That’s especially true while your properties need a top-up (negatively geared).
This is a temporary risk that is particular to you, because eventually your investment property will likely become positively geared.
So often property investors need a little more cover at the start, then it can reduce over time.
As an insurance adviser, I know that because at Opes Insurance we specialise in working with property investors.
Because I only work with property investors, I can understand the special risks they face.
So, Opes Insurance is often the right fit for property investors.
But, if you are not a property investors … there’s not much difference between Opes Insurance and other insurance companies.
It takes a lot of honesty to admit that. After all, I want to help as many Kiwis get insurance as possible. But, that’s the honest truth.
Often, your insurance adviser will work for a different company from your other advisers.
Think about it this way. What happens if your:
all work for different companies?
They’ll be in different offices, so their communication might get jumbled.
They may not all be on the same page, or have different approaches to their jobs. So, their advice might conflict.
But Opes Insurance is part of the Opes Group. So all your advisers (that whole list above) work for the same company, often in the same office.
We all talk to each other and our company has the same approach to investment. That means our advice is joined up; we’re all singing from the same hymn sheet.
This collaboration makes it easier for you. It also means we can communicate effectively, ensuring everyone knows who needs to do what and when.
So, if you are using Opes for your other advice, we at Opes Insurance are likely to be a good fit.
Though, let’s be real, some people see this as a risk. They don’t want a one-stop shop. They want to have different advice from different companies.
That can give a feeling of independence; that your advisers can keep each other in check.
If that’s you, Opes Insurance is likely not the right fit for you. You’ll be better suited with another insurance company that only does insurance.
We believe insurance isn’t a lotto ticket.
You shouldn’t take out more insurance than you need. And it shouldn’t put you in a better position than before you get sick (or can’t work).
That’s because insurance can be expensive, so we believe you should only take out the insurance you actually need.
But, it’s often hard to figure out what insurance you need (and what you don’t).
That’s why we came up with the Risk Reducer plan. This is the minimum level of insurance we think property investors need.
You can even use our calculator (coming soon), to see what this looks like before you speak to us.
This is something unique to Opes.
We don’t start with the Rolls-Royce of insurance (good but expensive) then decide what to cut out.
Instead, we start with the minimum insurance you need as a property investor. Then you can decide if you want more. This helps make insurance more affordable.
This Risk Reducer plan was created specifically for property investors, so it works really well for them, but is less useful if you are not an investor.
So again, if you are not a property investor, our Risk Reducer plan will be less useful for you. That’s where there starts to be less difference between us and other insurance advisers.
Not everyone should use Opes Insurance. We’re not everyone.
Some people want a totally independent insurance adviser; an adviser who doesn’t work for the same company as other advisers.
If that’s you, that’s OK. Opes Insurance likely won’t be the right fit.
Similarly, if you don’t invest in property, then there is less benefit for you using Opes Insurance compared to other companies.
And if you’re not interested in our Risk Reducer plan, we may not be the right fit.
But, if you are a property investor, you already use other services from Opes, and you are keen on our Risk Reducer plan, we are likely to be an excellent fit.
You can either book a free meeting with me or use our Risk Reducer calculator to see what insurance you might need.
Insurance adviser with over 25 years of experience
Bill McGavock is an Insurance Adviser at Opes Insurance. He has over 25 years of insurance and customer service experience. Bill provides personal risk advice and claims assistance for individuals, families, and businesses. He specialises in helping property investors protect their ability to grow wealth. Bill is based in Auckland.
