Multifamily Minute Reader Reflections: How Insurance Has Changed for You in 2024
You told me what's been going on with your multifamily insurance in the past 12 months. The short of it: It's getting rough out there. Here's what you can do.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Last time around, I asked our Multifamily Minute subscibers to tell me what's going on with their property insurance. Not just asking if things are better or worse (trust me: they're worse), but specifically asking what's changed with their policies.
Survey Results
Let's just get straight to the results.
No sense in sugarcoating it: It's rough out there.
Response | Percent of respondents |
|---|---|
My costs went up a lot | 74% |
My costs went up a little | 4% |
My coverage was reduced | 22% |
I changed insurers | 35% |
Nothing's changed | 4% |
Other | 9% |
(Note: Respondents could select multiple answers; the figures won't add up to 100%.)
Like, really rough.
Nearly three-quarters of you said that your insurance costs jumped by "a lot." I wish I were surprised, but it's exactly what I'd been expecting, given the wide amount of reading out there and what it indicates for multifamily insurance costs.
A lot of subscribers also said they changed insurance companies — many, no doubt, looking for a better deal. I hope you found it, though given the overlap with the first option, I'm not too optimistic.
One side note: A couple respondents mentioned that they'd had their policies flagged for nonrenewal this year. One mentioned that it happened shortly after filing a claim. The other mentioned that it was due to the age of their property and their insurer's appetite for (what they perceived as) higher risk.
What can you do to avoid overpaying, getting canceled, or taking out too little coverage for your buildings?
For one, you can make sure your risk management plan is actually managing risk — whether that's through more proactive property management, better tenant screening, or even implementing green initiatives.
For another, work with an experienced intermediary when it comes to sourcing your next insurance policy. It's not enough to renew with the same company you've been with for years.
Look, it's great if you have a good relationship with your insurer. But you won't know if they're overcharging for your coverage until you've shopped around to see what's on the market.
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