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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Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
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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
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499: The Death of The "Entrepreneur”: Experience from an 8-Figure CEO
498: Real Deal: BRRRR Deep Dive w/ Joe Asamoah (Pt 1)
497: Bigger Deals, Better Profits: 10 Steps to Your First Large Multifamily w/ Brian Murray and Brandon Turner
496: Become a (Small) Multifamily Millionaire in 7 Steps w/ Brian Murray and Brandon Turner
495: The Science Behind Taking Risks (and Why They Definitely Pay Off)
494: The Five F-Words Every Real Estate Investor Needs to Master
493: How COVID Changed Real Estate Forever (+How it Didn’t!) with Ken McElroy
492: Robuilt’s Tiny Houses That are Cashing in MASSIVE Profits Every Month
491: 5 Rules of Health & Wealth to Become the Millionaire with a Six Pack
490: 7 “Ninja Tips” From One of Hawaii’s Largest Real Estate Investors
489: How Are You Preparing to “Exit Rich” in Real Estate?
488: From 4 Units to 2,000 and Why Large Multifamily “Isn’t So Scary”
487: 10 Common Real Estate Investing Questions Answered by David Greene
486: The Key to Scaling that Most Real Estate Investors Miss Out On (+New Podcast!) w/ Liz Faircloth & Andresa Guidelli
485: Atomic Habits That Help You Achieve Unthinkable Success w/ NYT Best Selling Author James Clear
484: 3 Ways to Simplify Your Real Estate Investing with Brandon Turner
483: The 5 Things You Need to Build a $1,000,000+ Rental Portfolio
482: Full-Time Fireman Does 300 Deals While Working 40 Hours/Week
481: Build an Unstoppable Real Estate Portfolio with the “Core 4”
480: Making $200k a Month After Being on the Verge of Bankruptcy
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