Cost of Real Estate Spiking
Just saw an economists report today that confirms on macro scale everything my clients have been explaining... cost of real estate is spiking up. This is terrible timing considering costs of borrowing is up too.
In the insurance markets we know we have been in a "hard market" for the last 3-4 years. That means insurance carriers are not competing. They are all increasing their premiums. And in some markets like FL we have seen carriers exit the market altogether.
I am also seeing lenders increase their insurance requirements. They want investors to cover the potential for business interruption and also cover the higher replacement cost estimates. So not only is cost of coverage increasing... the amount of coverage required is increasing.
Thankfully, our flood zone engineering team works to find relief for investors (in flood). We've been successful in removing lender requirements. We've never been more valuable to insurance brokers, CRE brokers, and investors.
So the question I wanted to pose here is... how are you finding relief? Where are you finding it? What resources are you having to pull from?