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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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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646: Building Wealth Like Warren Buffett & Lessons Learned from Billionaires w/Trey Lockerbie
645: Seeing Greene: Will Borrowing Money from Family Ruin Your Real Estate Deal?
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643: BiggerNews August: Will 3D Printed Homes Slash Housing Costs? w/Zachary Mannheimer
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640: How to Buy Your First 3 Rental Properties (Step-by-Step) This Year!
639:Passive Income (Without the Properties!) by Investing in REITs w/Matt Argersinger
638: Making a Profitable Pivot Out of Regular Rentals and into Vacation Investing w/Brian Davila
637: Private Money Explained: 5 Simple Ways to Find Private Money Today (Part 2) w/Amy Mahjoory
636: Private Capital Explained: The 4-Second Pitch to Unlock Unlimited Funds (Part 1) w/Amy Mahjoory
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634: Why 2023 Will Be One of The Best Years Ever to Invest in Multifamily w/Matt Faircloth and Andrew Cushman
633: Seeing Greene: Is My BRRRR a Bust If Cash Flow is Low?
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