Commercial MF Insurance Premiums

Investor · Chicago, IL · Member since 2020 · 26 posts · 17 votes

Hey all,

We've been shopping around with different brokers for our 2 - 6 unit building insurance policy. This last renewal, our premium went up another 25%, over 68% in 2 years! I was wondering what other landlords are paying for similar buildings. The brokers all shop you through the same company and say this is the only company that will insure these buildings. I find it hard to believe everyone in Chicagoland has the same insurance company.

0 Reply

20 views

2 Replies

Jump to latestLatest

Sort by

Robert Masucci
Real Estate Consultant · Remote · Member since 2025 · 48 posts · 21 votes
1y
Hey Jordan, when you say broker, you mean insurance broker or real estate broker? Also I would agree it's unlikely that everyone in that area has the same insurance company because that would make it a monopoly, which is illegal. I would look into getting a third (insurance) broker to help you find a competing company to the one everyone else is working with and see what they'll offer you. Sometimes more boutique companies that are trying to compete with the bigger companies will offer better rates. Also, try to find out why the premiums keep going up--what is the cause of that. Something you might want to be aware of ahead of time because it might affect your property in the longrun.
0 Reply
- Owen RosenBusiness Member
  Professional · Clinton Township, MI · Member since 2015 · 676 posts · 259 votes
  1y
  Quote from @Robert Masucci:
  
  Hey Jordan, when you say broker, you mean insurance broker or real estate broker? Also I would agree it's unlikely that everyone in that area has the same insurance company because that would make it a monopoly, which is illegal. I would look into getting a third (insurance) broker to help you find a competing company to the one everyone else is working with and see what they'll offer you. Sometimes more boutique companies that are trying to compete with the bigger companies will offer better rates. Also, try to find out why the premiums keep going up--what is the cause of that. Something you might want to be aware of ahead of time because it might affect your property in the longrun.
  
  1-4 units is significantly different than over but the market is tough in Cook County currently. That said, there isn't only one company insuring these properties.
  There's a difference between existing policies that are grandfathered in and new business though in terms of eligibility and what a company will accept. In fact, that's changed drastically over the past few years. So, you'll have properties insured by a carrier that would not insure the same property today if ownership changed and the policy was re-shopped.
  Royal Oath Insurance Group4.9203 Reviews
  Website View Page
  1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.