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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678: Is the Buyer’s Market Back? How to Find Deals and Steals on the MLS w/Jamil Damji
677: How to Build an Income-Replacing, All Off-Market Rental Property Portfolio w/Taylor Wing
676: Rob's Real Talk: What Running Short-Term Rentals at Scale REALLY Looks Like
675: Seeing Greene: When Does It Make Sense to Refi with High Interest Rates?
674: Investor Update: The "10 Deals on $20K/Year" Investor's Explosive Growth w/Ashley Hamilton
673: Beyond Cash on Cash: How Thinking Like an Investor Unlocks More Deals w/Dave Meyer & J Scott
672: Seeing Greene: Interest Rates, Flipping Tips, and Investor-Only Loans
671: Will the “Silver Tsunami” Flood You with Cash Flow? w/Isabelle Guarino-Smith
670: BiggerNews October: Should You Sell Before the Fed “Creates” a Crash?
669: Seeing Greene: Is BRRRR Investing About to Get Even Better?
668: 10 Units in 3 Years and Giving Back While Getting Ahead w/Zasha Smith
667: How to Get Any Seller to Accept Your Offer in 24 Hours (or Less!) w/Jonathan Greene
666: Seeing Greene: The 10-Second Formula to Solve the "Sell vs. Rent" Situation
665: Building a 150-Unit “Lease Arbitrage” Empire and the STR Furnishing Playbook w/Jeff Iloulian
664: Why Your “Pitch Deck” Won’t Work (and What to Do Instead) w/Pitch Anything’s Oren Klaff (Part 2)
663: How to “Raise the Stakes” So Anyone Accepts Your Deal w/Pitch Anything’s Oren Klaff (Part 1)
662: ROE > ROI and Why Your “Cash Flow” Number is Deceiving w/Chris Lopez
661: How to “Start from Zero” in Today’s Multifamily Market w/Andrew Cushman and Matt Faircloth
660: Deal Deep Dive: How Robuilt Doubled His Property Portfolio Overnight
659: Beat the Grind: Make Millions in Real Estate by Gamifying Your Day-To-Day w/Luke Rotvold
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