HOW CAN YOU PREPARE FOR INSURANCE INCREASES
For investors, it’s important to underwrite deals with an insurance agent who is knowledgeable about the industry trends. Assuming a cost-per- door that last year would have been $500, is now going to likely be double that today. Underwriting without the input of an expert will cause certain strife when budgeting. It’s also important to take insurance costs listed in Offering Memorandums with a very large grain of salt. Rarely are those figures on the mark, and without the specific details of what the seller was insured for, it is essentially comparing apples to oranges. Those with or preparing to work with lenders also need to pay specific attention to what the lenders are requiring regarding insurance requirements.
Those with government-backed loans will need to budget for the additional coverage that must be carried when working with those lenders. Lastly, be sure to shop for insurance if you haven’t received a quote in the last 2 years. An insurance broker can help you determine if you are in fact getting the best insurance rate possible and what improvements you can make to your property to reduce your premium. Click here to get a free insurance quote on AAOA’s website.
UNDERWRITE DEALS WITH AN INSURANCE AGENT WHO IS KNOWLEDGEABLE ABOUT THE INDUSTRY TRENDS.
LAUREN LIEB Sr. Commercial Risk Advisor InsuranceHub (678) 812-2516 LLieb@insurancehub.com
Lauren has been with InsuranceHub for over 7 years and specializes in advising clients all around the country in regard to their multifamily and other lessor’s risks properties. When she is not helping her clients, you can find her fostering dogs for animal rescues (and only occasionally keeping them). She originally hails from Ohio, but now lives in Decatur, Georgia with her husband and menagerie of pets.
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