Rental Insurance Going away Up?

[Ken Latchers]

I just read last night rental insurance  going way up? For example multi families up by 33%. And others also up a lot. Has anyone seen anything like this?

[Jason Bott]

I can confirm the Property insurance market nationally is hardening up.  Expect to see renewal rates to be up 5%-15%. 

4th Qtr 2019 saw a 4% increase on Property rates nationally and 1st Qtr 2020 saw a 5% increase.

Could some accounts go up 30%?   Sure, but that will be the exception, not the rule.  With the accounts going up 30%, there are most likely other underwriting reasons for the increased cost, just not a rate increase.

As with any financial market, there is not a single reason or a short explanation.  But for those of us in the industry this has been coming for several years after many years of flat renewal rates.

Unfortunately the current state of the economy will put further pressure on insurance carriers to make their money through rate increases (underwriting profit) versus investment income from bonds and interest rate returns.

Solutions?

1)  Ask your current provider for a lower renewal.  This can work if you have never asked and have been with them for some time.

2)  Make sure you are only paying for coverage you would claim against.

3)  Quote out your account.  Maybe you are currently with a high cost provider and making a move will save you substantial $. 

If any one of these work for you, you wont even notice that rates went up.