Why Insurance Matters in Real Estate?
At Blue Rock Insurance, we recognize that buying a home or renting an apartment is a major milestone. It is an important moment in a person's life. Move-in day is filled with excitement. However, it also brings responsibilities and risks. These risks often go unnoticed until it is too late. To delve into this subject, we spoke with Carole Hu. She is a seasoned real estate expert affiliated with Douglas Elliman. She is licensed in both New York and New Jersey. Carole has more than ten years of experience in sales, rentals, and relocation. She has successfully helped clients navigate different markets and properties. These include condos, co-ops, townhouses, and luxury mansions.
During our discussion, Carole shared her valuable insights and real-life case studies. She emphasizes to her clients that insurance is not merely paperwork; it represents peace of mind.
Blue Rock: Carole, you’ve been in real estate for over 10 years. What keeps you motivated?
Carole: Honestly, it’s my clients. Everyone has different goals, and I love helping them reach those goals. Being involved in a family's journey is truly rewarding. This could be when they are purchasing their first condo. It could also be when they are upgrading to a larger home. And part of that journey is making sure they don’t overlook the importance of insurance.
Blue Rock: Can you give us an example of what can happen when clients overlook it?
Carole: Oh, I’ve seen plenty. One story that really stuck with me was about a client who bought a condo in Manhattan. He was so excited to renovate right away. The project was supposed to take less than two weeks. But on the third day, sawdust in the vacant unit overheated from the summer heat and caught fire.
Blue Rock: Wow, that sounds terrifying.
Carole: It was. The fire department arrived quickly. They extinguished the flames, but the water flooded the unit below. Smoke also damaged the hallway and the unit above. Suddenly, there were multiple claims—from the condo board to the neighbors. The insurance company had to get involved with all the damages. It showed me how one small spark can affect not just one homeowner, but an entire building.
Blue Rock: That’s a huge reminder. Have you seen something similar happen with renters?
Carole: Yes! I always tell my rental clients to get renters insurance, even when it’s not required by the lease. One client moved into a brand-new condo, and thankfully, his building required it. The day after move-in, his uncle came over to help hang a piece of wall art. He drilled into the wall… and right into a pipe.
Blue Rock: Oh no.
Carole: Exactly. The water poured down several floors. The total repair bill was more than $10,000. Because he had renters insurance, everything was covered. If he didn’t, he would’ve had to pay out of pocket. That one policy saved him from a huge financial loss over such a small mistake.
Blue Rock: How do your clients respond when you give them this kind of advice?
Carole: They thank me all the time. A lot of people just don’t think about these risks, especially if they’re new to renting or buying. But I enjoy guiding them—it’s part of being a good real estate agent. At the end of the day, I want to see my clients happy in their homes.
And I always say: No one should ever be cheap when it comes to insurance. It’s what gives you peace of mind when life throws surprises at you.
Important Insurance Policies for Homeowners & Renters
Based on Carole’s experience, here are the key coverages every client should know about:
Homeowners Insurance – Protects your home and belongings, and covers liability if someone is injured on your property.
Condo/Co-op Insurance (HO-6 Policy) – This insurance covers the interior of your unit, your personal belongings, and liability. It is often required by condo boards.
Renters Insurance – Covers personal belongings and liability, and pays for damages you might cause to others in the building.
Contractor’s Insurance (General Liability & Workers’ Compensation) – Always make sure your contractor has their own coverage before starting renovations.
Umbrella Insurance – Provides extra liability coverage on top of your existing policies, useful for major claims.
Final Thought:
Insurance isn’t just paperwork—it’s protection for your biggest investment. Whether you’re buying, renovating, or renting, having the right coverage ensures you can enjoy your home with peace of mind.
