American IRA CEO Explains Sinkhole Insurance for Real Estate IRA Investors

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Real Estate IRA investors are rightly concerned about the possibilities of damage from sinkholes taking out a portion of their retirement nest egg. Jim Hitt of American IRA recently took to the company blog to explain what investors need to know.

American IRA CEO

American IRA CEO, Jim Hitt

To protect yourself, consider specialized sinkhole insurance. These policies, available as a rider or add-on to your standard landlord insurance policy, may provide much broader protection.

The term “sinkhole” is not metaphorical for those who are worried about the property value of their real estate, especially if that real estate is held within a Self-Directed Real Estate IRA. That’s why Jim Hitt, CEO of American IRA in Asheville, NC, recently went to the American IRA blog to explain the concept of sinkhole insurance and what investors need to know about this insurance type before getting themselves involved.

Quoting a 2010 study in which sinkholes cost insurers almost half a billion dollars in the state of Florida alone, the post makes a point that these sinkholes might sound fairly harmless, when in reality they can destroy a tremendous amount of property. For investors counting on their real estate nest egg to support them in retirement, this can be a potential disaster.

The solution, according to Jim Hitt, for Florida investors is that these IRA owners can buy insurance protection against sinkholes. Says the post: “To protect yourself, consider specialized sinkhole insurance. These policies, available as a rider or add-on to your standard landlord insurance policy, may provide much broader protection.”

The post also details exactly what qualifies as a sinkhole, which is important for Real Estate IRA investors to know if they’re going to properly manage their expectations.

“I wrote this post partially because there has been a lot of attention to other disasters recently, and rightly so,” said Jim Hitt. “Fires, floods, hurricanes—these are all real threats and investors need to be aware of them. But that doesn’t mean Real Estate IRA holders should forget about sinkholes. Sinkholes can be very threatening and seem to arise from nowhere—which means that most investors are, by definition, caught off-guard when it happens to them.”

Jim Hitt advised that in this case, knowledge is power. Those looking to protect their Real Estate IRA from sudden disaster should at least consider sinkhole insurance, says Jim Hitt, and not trust that their current insurance policies will handle everything.

The post goes into even greater detail—to find out more, visit http://www.AmericanIRA.com or call 866-7500-IRA.

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville, NC.

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Sean McKay
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