819: What Caused 2023’s WILD Insurance Market (and When Prices Could Fall) w/Robert J. Hamilton

2023’s insurance market is bad. Really bad. “As bad as I’ve ever seen,” says Insurance Office of America’s Robert J. Hamilton. He’s never seen home and multifamily insurance prices as high as today. But, he has good reason to believe that a better insurance market could be upon us soon, especially as prices continue to ramp up and providers get priced out of the market. 

If you’re a property owner, there’s a good chance your insurance premium increased significantly in price last year and the year before. After several unprecedented natural disasters, states like Texas, Florida, and California have seen carriers massively raise rates or leave their markets entirely. But why now? And how long will this last? Robert walks us through exactly what’s caused the higher insurance rates, why so many carriers have given up or died out, and “the beginning of a reset” that could be on the horizon.

Andrew Cushman, long-time friend of the show and multifamily investor, gives his seven quick tips on finding a better rate and protecting your property if and when disaster strikes. DO NOT analyze another deal before you watch this episode because, by the time you finish, your new insurance rate could ruin the profit potential. 

In This Episode We Cover:

The wild 2023 insurance crisis explained and why rates have gone up so dramatically

The “capacity crunch” forcing insurance carriers to leave risky markets 

What’s causing rates to rise and the “reinsurance” problem carriers face 

Underwriting your next rental/multifamily and how to properly predict property insurance costs 

The safest states/areas to invest in that carriers are flocking to 

The “percentage deductible” trap that could bankrupt your deal if you aren’t careful 

And So Much More!

Links from the Show

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How to Protect Your Rental from Fires, Floods, Lawsuits, and Liability

What Is Rental Property Insurance & Do Landlords Need It?

Book Mentioned in the Show:

SCALE by David Greene

Connect with Andrew:

Andrew's BiggerPockets Profile

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Andrew's Website

Connect with Robert:

Robert's Email

Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-819

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