BiggerPockets Real Estate Podcast
Business:Investing
2023’s insurance market is bad. Really bad. “As bad as I’ve ever seen,” says Insurance Office of America’s Robert J. Hamilton. He’s never seen home and multifamily insurance prices as high as today. But, he has good reason to believe that a better insurance market could be upon us soon, especially as prices continue to ramp up and providers get priced out of the market.
If you’re a property owner, there’s a good chance your insurance premium increased significantly in price last year and the year before. After several unprecedented natural disasters, states like Texas, Florida, and California have seen carriers massively raise rates or leave their markets entirely. But why now? And how long will this last? Robert walks us through exactly what’s caused the higher insurance rates, why so many carriers have given up or died out, and “the beginning of a reset” that could be on the horizon.
Andrew Cushman, long-time friend of the show and multifamily investor, gives his seven quick tips on finding a better rate and protecting your property if and when disaster strikes. DO NOT analyze another deal before you watch this episode because, by the time you finish, your new insurance rate could ruin the profit potential.
In This Episode We Cover:
The wild 2023 insurance crisis explained and why rates have gone up so dramatically
The “capacity crunch” forcing insurance carriers to leave risky markets
What’s causing rates to rise and the “reinsurance” problem carriers face
Underwriting your next rental/multifamily and how to properly predict property insurance costs
The safest states/areas to invest in that carriers are flocking to
The “percentage deductible” trap that could bankrupt your deal if you aren’t careful
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
BiggerPockets Merch
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Davids's BiggerPockets Profile
David's Instagram
Network with Other Investors on the BiggerPockets Forums
How to Protect Your Rental from Fires, Floods, Lawsuits, and Liability
What Is Rental Property Insurance & Do Landlords Need It?
Book Mentioned in the Show:
SCALE by David Greene
Connect with Andrew:
Andrew's BiggerPockets Profile
Andrew's LinkedIn
Andrew's Website
Connect with Robert:
Robert's Email
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-819
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
1000: Episode 1,000: Real Estate Is Changing, and So Is BiggerPockets
999: BiggerNews: The Market Bets on Mortgage Rates Falling, More Homes for Sale w/Realtor.com's Ralph McLaughlin
3 Steps to Buying Your First (or Next) Small Multifamily Property
998: How to Create Multiple Streams of Income Through Real Estate Investing
997: Seeing Greene: Keep or Sell? What to Do When Your Rental Doesn’t Cash Flow
996: Financial Freedom in 3 Years by Investing in “Boring” Rental Properties
995: BiggerNews: Multifamily Market Update + Where to Find Deals NOW
994: Airbnb Has Changed: Make More Money Even with Regulations & New Competition w/Rent to Retirement CEO
993: Seeing Greene: Should I Start Flipping Houses in My Market? (How to Know)
992: International Real Estate Investments: Make More by Buying Abroad?
991: A World Without Airbnb & Why "Sinking" Could Cause Your Insurance to Skyrocket
How to Find, Evaluate, and Offer on Rental Properties in 2024
990: 2 Real Estate Markets We’re Investing in Now (Should You?)
989: Seeing Greene: Investing with High DTI, When to Refi, & Getting Out of Debt
988: How to Start Making Millions from These Overlooked RV Park Investments w/Heather Blankenship
987: BiggerNews: Rate Cut Chances Increase as New "Affordable" Markets Emerge
986: Are Tiny Homes a Good Investment? How a $50,000 Home Pencils Out
985: Seeing Greene: How to Use Home Equity to Retire, Buy Rentals, or House Hack
984: Pay Off Student Loans or Invest in Real Estate: Which Makes You Wealthier?
983: BiggerNews: With Slow Spring Homebuying, Zillow Predicts Price Drops in 2025
Create your
podcast in
minutes
It is Free
TED Talks Daily
Radiolab
StarTalk Radio
The Inforium
Entrepreneurial Thought Leaders