BiggerPockets

I have heard the same complaint from a group of fellow landlords outside of BP. Not sure what the heck is going on.

Are you looking for vacant property insurance or landlords insurance?

Hi all,

To clarify the communications recently from Affinity/National Real Estate Insurance Group, I will elaborate as briefly as possible.

We are one of the few insurers to still offer theft on vacant/rehab locations in the industry. The coverage we purchase and rate we pay from insurers is based upon their ability to create profit. Theft claims in our industry (per the insurance industry) are up over 250% in the last 1-2 years, as compared to a much longer historical period. Bottom line is that theft is becoming less of an insurable risk (on vacants, especially) and more of a "cost of doing business". If any risk becomes less of an unforeseen event and more of an inevitable one, the insurance industry will no longer cover it (think asbestos, black mold, etc...)

Bear in mind, I am not trying to defend or justify the insurance industry's actions, however, if they don't profit, they simply raise rates, or drop coverages. If we can't get it (the coverage) to offer to our clients, we can't sell it, frankly. Or if the rate is higher when we do, we have to charge accordingly.

We have secured discounts through a variety of vendors (AC Bandit, security/protection companies, etc...) and will continue to assist our clients by sharing info and knowledge to help them mitigate/diminish these types of risk exposures. (Contact us for info on any of these, if interested).

Remember, too, we have a variety of carriers and Programs for Real Estate investors, backed by different insurers. As such, we are continually "shopping" the market for the best value. Best value doesn't necessarily mean cheapest rate. Some things to consider when "comparing":

1. Does your policy insure Basic, Broad, or Special form? Do you know what is and isn't inured/covered?
2. Would a co-insurance penalty apply, in the event of a partial loss?
3. Does the insurer really know the location is vacant, or does the agent simply say so? (Most standard carriers do not offer vacant/rehab coverage).
4. Is the premium they charge fully earned (you don't get anything back if you don't need the coverage for the entire period)?

Our Programs address these issues and more. Not trying to pitch here, but just wanted to address these recent rumblings.

Best regards,

Tim Norris
President
Affinity Group Management
National Real Estate Insurance Group

You're welcome. Don't hesitate to ever contact me with concerns, etc. Thanks!

thank you Will. I'll give my Farmers agent a call to see how much it costs, what it covers, etc.

As always, thank you for your help!