Insurance renewals quotes are very high - 20% + increase

[Lakshmi Kotagiri]

Hi All,

two of my rentals insurance renewal is up in February and the renewal rates are coming very high. 25% increase in premium. I didnt have any claims on these houses. any good carriers in Texas that give competitive rates for rentals?

Thanks

[Cameron Moore]

Make sure you hire an insurance broker to shop multiple options at every renewal. 

[Bo Bond]

Lakshmi,

The insurance market is hardening more than it has in decades.  Considering many catastrophic events over the past few years (floods, hurricanes, wildfires, record level winters/freezes, wind, hail, hurricane, etc.), added pressure from reinsurance carriers, and a lot of market uncertainty, carriers of all shapes and sizes are increasing rates/premiums whether your individual account has had losses or not.  Just like everything else, insurance costs are going up significantly too right now.

Assuming you're referring to Texas rental properties, it's usually worse here (except for FL) when it comes to property rates.  Our state is by far the worst when it comes to the record number of wind/hail events we have every year.  Once you throw in freezing temperatures and hurricanes, it only gets worse.  While you may not be directly hit, many around you in the state are hit, and thus that affects the outcome of your renewal.

Cameron makes a good point above which may help, but if everyone is seeing rate increases, the benefit might not be as good as what you're hoping for.  I hope that's not the case, and you're able to get your premiums back down where you need them.  If you find that rates with other carriers are still high, consider increasing your deductibles (standard deductible, wind/hail deductible, etc.) to save you more money.  Just make sure you know how these deductibles will be applied once you do file a claim.  

Some other items to consider would be co-insurance, actual cash value, removing / lowering your loss of rents coverage, removing or lowering your limit for water and sewer backup, etc.  Obviously these aren't ideal solutions when it comes to insurance, but desperate times may call for some desperate measures.  Everyone's circumstances are different from the next.  Either way, you won't know if you don't shop with an independent agent / insurance broker who can provide you with "multiple" coverage & carrier options that fit you best.  Good luck, and I hope you find this helpful.  

[Jason Bott]

Quote from @Lakshmi Kotagiri:

Hi All,

two of my rentals insurance renewal is up in February and the renewal rates are coming very high. 25% increase in premium. I didnt have any claims on these houses. any good carriers in Texas that give competitive rates for rentals?

Thanks

 Lakshmi, unfortunately this is the state of the insurance market right now.  We have clients in 30 states, and I'd say if your premium renewal is 20% or less, your doing good.  

There could be other carriers to check, and as @Cameron Moore states, your best option is to partner with a good independent broker who can market your account each renewal.  

[Lakshmi Kotagiri]

Quote from @Jason Bott:

Quote from @Lakshmi Kotagiri:

Hi All,

two of my rentals insurance renewal is up in February and the renewal rates are coming very high. 25% increase in premium. I didnt have any claims on these houses. any good carriers in Texas that give competitive rates for rentals?

Thanks

 Lakshmi, unfortunately this is the state of the insurance market right now.  We have clients in 30 states, and I'd say if your premium renewal is 20% or less, your doing good.  

There could be other carriers to check, and as @Cameron Moore states, your best option is to partner with a good independent broker who can market your account each renewal.  

 Thank you Jason. both the renewals are above 20% increase!!

[Carlos Ptriawan]

building cost is higher now, coupled with inflation , higher crime and flood disaster even in california, what do you expect? I would guess that some of these insurance companies are going to collapse due to the number of claims.

[Kyle Mccaw]

@Lakshmi Kotagiri

The increase in insurance premiums this year is more a result of factors outside of your control. Such as, the increasing cost of repair and replacement of property, an increase in the cost of liability coverage, recent large loss events in the region, and changes in the financial markets impact insurance carriers.

When it comes to reducing your premiums, there are a few proactive steps you can take. First, make sure your rental property is up to code, and that you take appropriate measures for safety and repairs. This can help lower the risk of accidents and damage, which can help reduce premiums. Second, shop around for the best rates and coverage. I use @Cameron Moore with ProCo Insurance to shop for the best rate and coverage. I don't want to overpay. But I also want my bum covered. Different insurance companies may offer different rates or coverage options, so it pays to research your options. Third, consider increasing your deductible. A higher deductible can mean lower premiums, but be sure to weigh the cost of the deductible against the cost of the premiums. I almost always go with the higher deductible.

I hope this helps.