Why keeping your insurance rate low matters

Question

Are you paying attention to your insurance rate—or just going with the first quote you get?

If you own investment properties, insurance isn’t just another expense. It directly impacts your cash flow, your returns, and your ability to grow. One thing investors sometimes overlook is that your expenses matter just as much as your income. I’ve seen deals that looked great on paper get killed because the insurance premium was simply too high. That’s why keeping your insurance rate competitive is so important. The lower your expenses, the more money you can keep in your pocket—or put toward repairs, improvements, paying down debt, or your next investment property.

When you’re analyzing an investment property, don’t just ask:

“Can I get insurance?”

Ask: “What is this insurance going to do to my numbers?”

Because a great investment can quickly become an average—or even a negative-cash-flow—deal when your expenses are too high.

As a DSCR Broker, I’ve partnered with insurance providers to help my clients streamline this part of the process and shop for competitive coverage and rates. The goal is simple: keep the numbers working so we can get more deals to the closing table.

Run the numbers. Shop your insurance. Protect your cash flow. Keep investing. Has anyone else seen deals fall apart because of high insurance rates and no solutions ?

Owen Rosen · Answer

I agree it's important to shop insurance. That said, if you only shop on price you're likely to be back on this forum complaining about how insurance is a scam at some point in your future.

You must understand what you're buying before you have to use it.