It’s been a rough couple of years for multi-family real estate owners. The pandemic is causing a lot of the financial pain that landlords in Michigan are experiencing. But partnering with an independent insurance agency can take some of the pressure off.
The Government Tried To Step In
Establishing eviction moratoriums during the COVID-19 pandemic helped to offset massive job loss and unemployment in Michigan. This includes the CARES act. It applies to federally-backed properties.
The ban was promptly extended after expiring on the night of January 1, 2021. But President Biden extended it once more. It will now end on March 31. Even with rental assistance provided by the federal government and the state of Michigan, the financial pain for these multi-family dwelling owners has been severe.
Add rising property and liability insurance premiums to the pain. Plus, increasing property and liability premiums for multi-family property owners jumped.
In fact, multi-family real estate insurance climbed higher than any other real estate category. It’s as high as 40% in some cases, the biggest jump in more than 10 years. Carriers are now shifting risk to rental property owners through increased deductibles and self-insurance limits.
Multi-Family Real Estate Owners Don’t Have To Suffer
The effects this has on rental property owners are widespread. There are those who are trying to pay mortgages and upkeep on properties with much less rent coming in because of COVID-related protections for tenants. But it’s very difficult to keep up. So, the moratorium may be ending, but the long-term effects will be ongoing.
“There’s a big issue here for multi-family property owners that’s not being discussed. Increased deductibles are becoming a huge barrier for those wanting to finance new acquisitions,” said Autumn Insurance & Benefits CEO Curt Rager. “Autumn customers, however, are very fortunate that we’re an independent agency. While some insurance providers will be attempting to reduce their own exposure, we also have access to providers who are taking a slower, more thoughtful course in protecting our clients.”
Because of larger deductibles and the risk of becoming uninsurable altogether after a serious loss, now is the time for multifamily property owners to go to work. You can reduce risk and develop a loss prevention strategy. It can be used to do three things:
- Attract insurers
- Secure competitive rates
- Prevent avoidable claims
The initial step should be to work with insurance brokers to know what you are dealing with and have all the information needed to get the best rates. They can provide you with information on everything from commercial insurance to umbrella insurance, and more.
Autumn Insurance Can Help
Autumn Insurance is here to help you with that process and develop an insurance protection program customized for your needs. So, feel free to contact us at any time. Our agents, who are experts in handling multi-family real estate policies, are standing by. Or give us a call at 248-478-1177.