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
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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
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783.1: Home Buying Hacks: Finding The Perfect House (and Agent!) w/Chris Hutchins
782: Unbelievable Returns from Flipping This New Type of Real Estate w/Jessie Rodriguez
781.5: What to Buy During the Newest Real Estate Crash w/Willy Walker
781: The Beginner’s Guide to Finding Undervalued, Off-Market Deals in ANY Market
780: The Step-by-Step Guide to Building a Medium-Term Rental Empire w/Jesse Vasquez
779: How Delivering Pizzas Helped Me Build a 27-Unit Rental Portfolio w/Pamela Bardhi
778: How to Build a Million Dollar Rental Portfolio with Little Time OR Money w/Niti Jamdar & Palak Shah
777: Seeing Greene: Investing Later in Life? You’re Still in Luck!
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774: Seeing Greene: Bleeding Rentals, Bad Flips, and The Safe Haven For Your Cash
773: Replacing His Income with $70K/Year Cash Flow After a Close Call with Death w/Pasha Maleknia
772: Stop Looking for Perfect Properties, Search for These Instead
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769: The Beginner’s Guide to “Infinite Investing” with the BRRRR Method
768: Seeing Greene: Do This BEFORE You Leave Your 9-5 Behind
767: Multifamily Market Update + What a 20 Year Veteran Knows That You Don’t w/Angie Smith
766: Explosive Growth Could Be in Store for These Two Real Estate Markets w/Kim Meredith-Hampton and Victor Steffen
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