Artificial intelligence (AI) tools such as ChatGPT, Bard and MidJourney have been making headlines across the globe over the last few months. Almost every industry is trying to figure out how it can save them time while making them more efficient. HOW TECHNOLOGY AND AI ARE REVOLUTIONIZING LANDLORD INSURANCE
Property insurance is one sector of the insurance industry that can benefit tremendously by incorporating AI into how they conduct their business. The industry at large hasn’t changed
much in the last 20 years but new emerging technologies, known as InsurTech, are pushing forward a much needed revolution, a more streamlined way of issuing insurance policies.
DOES AN UPGRADED PROPERTY PAY LESS INSURANCE?
Imagine that you invest in a single-family rental that is in great condition. All the wiring, roof, and other components were replaced in the last 5 years. Right next to it, you have a similar single-family dwelling, but no major upgrades have been made in the last 15 years. Surprisingly, the two properties have the exact same premium rates, a situation that is not uncommon. Traditional insurance pricing models often rely on generalized assumptions resulting in premiums
that may not accurately reflect the true risk associated with a specific rental property. Insurance premiums have usually been calculated based on statistical data and actuarial analysis, and by looking at similar properties in the area. This has led to inaccurate risk assumptions where properties that upheld a higher standard did not reap the benefits of their investments when it came to their insurance premiums.
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