It’s been a rough year and a half for multifamily real estate owners and you only have to point to one reason to encompass all the financial pain experienced by these landlords—COVID.
Eviction moratoriums have been extended again to at least October. 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.
Now add rising property and liability insurance premiums to the pain. The property and liability premiums for multi-family property owners have increased more than any other real estate category and 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.
Imagine, if you will, the effect this has on rental property owners who have tried (some successfully, some not) to pay mortgages and upkeep on properties with much less rent coming in because of COVID-related protections for tenants. The moratorium may be over, 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.”
With 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 reducing risk and develop a loss prevention strategy to attract insurers, secure competitive rates, and 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. Autumn Insurance is here to help you with that process and develop an insurance protection program customized for your needs. Call today at 248-478-1177.