Captive Insurance for Real Estate Portfolios: Risk and Reward
Captive Insurance for Real Estate Portfolios: Risk and Reward For real estate investors managing multimillion-dollar portfolios, traditional insurance may not offer the flexibility, tax benefits, or cost efficiency they need. Enter captive insurance—a private insurance company formed to insure the risks of its owner(s). This advanced risk management strategy offers potential tax deductions, improved loss control, and even wealth accumulation opportunities—if done right. 📌 Table of Contents What Is Captive Insurance? Why Use a Captive for Real Estate? Benefits: Tax, Flexibility, and Risk Control Compliance Risks and IRS Scrutiny Who Is a Good Fit for a Captive? What Is Captive Insurance? A captive insurance company is a wholly-owned insurance subsidiary created by a business to insure its own risks. Rather than paying premiums to an outside insurer, the business pays premiums to its own captive and retains underwriting profits if losses are low...