Apartment building insurance has gone up 20 percent every year for the last two years. Why?
“Insurance is skyrocketing, umbrella insurance, all types of insurance is skyrocketing,” said John Simone, managing director at Brownstone Agency. “And that is due to a lot of reinsurance problems that are going on right now. There are a lot of hurricanes and fires — catastrophic losses that have occurred, which brought the rates up. So when reinsurers bring their rates up, they pass it down to the carrier, and the carrier passes it down to the consumer. That’s just the way it goes.”
Another reason is that these insurers are experiencing big losses in their multifamily business and large losses on the liability side. Property owners are being found liable for covered losses that have occurred on their properties. As a result, insurers have been forced to leave the market entirely.
“There are fewer carriers, so prices go up,” said Simone.
Three-year prepaid policy: Fortunately, Brownstone Agency has a solution that helps the consumer: a three-year prepaid policy that locks in this year’s rate until 2027. There is no other agency that provides that product. “Others have tried, but they don’t have the experience we have,” said Simone.
To protect your investment, reach out to Brownstone Agency today and inquire about locking in a low rate with their three-year prepaid policy.
