Now that the new year has begun, it’s important to be familiar with what the insurance industry will face this year in order to prepare your bottom line for probable premium increases. There are some actions that can be taken to reduce those premiums. INSURANCE OUTLOOK FOR 2023: RENTAL AND MULTIFAMILY PROPERTIES
WHY ARE INSURANCE RATES GOING UP? Unfortunately for property investors, the insurance industry is dealing with a myriad of hurdles going into 2023 that will affect not only policy premiums, but policy coverages as well.
1. Supply-chain issues
2. Higher interest rates
3. Reduction in market capacity
4. Increased loss costs due to uptick in catastrophic weather events
5. Inflation costs from 2022 that were not accounted for in last year’s policies
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